Sh1.9B Loan Raises Questions Over Jabavu Village's Housing Projects

Jabavu Village, a subsidiary of the Hass Petroleum Group, has found itself embroiled in controversy over its management of an affordable housing initiative in Nairobi.

The real estate firm has drawn significant attention for leveraging land designated for affordable housing to obtain a Sh1.9 billion loan from the National Bank of Kenya. The company's trajectory had initially seemed promising. In 2017, Abdirashid Mohamad Jabane, one of Jabavu Village's three directors, received notable recognition from President Uhuru Kenyatta, including the Head of State Commendation and the third class Moran of the Burning Spear, acknowledging his contributions to Kenya's real estate development. This recognition coincided with the announcement of the ambitious Pinnacle Project, which was designed to become Africa's tallest building in Nairobi's Upper Hill district.

Recent developments, however, have cast a shadow over the firm's operations. During a Nairobi County Assembly Departmental Planning Committee meeting, troubling revelations emerged regarding missing title deeds for housing projects in both Pangani and Jeevanjee. While initial reports suggested former Nairobi governor Mike Sonko held the Jeevanjee Estate title deed, investigations revealed it had been used to secure the substantial loan from the National Bank of Kenya.

The Jeevanjee Housing Project, formalized through a partnership between Nairobi City County and Jabavu Village in March 2019, established clear roles: the county would oversee development while Jabavu Village would handle construction. Despite this structured arrangement, the project has encountered significant delays and legal obstacles. The flagship Pinnacle Project exemplified the company's grand aspirations, featuring plans for four basement levels, a five-story mall, and two towers - a 45-story hotel and a 68-story commercial/residential building.

The design included an observation deck on the 69th floor, promising views of both Mount Kenya and Mount Kilimanjaro. However, this development has been plagued by legal disputes and allegations of financial impropriety. Corporate records indicate Jabavu Village secured three substantial loans since August 2020. These included an initial $3.2 million facility, followed by Sh70.375 million in November 2022, and the recent Sh1.9 billion loan in January 2023.