Abdinasir Ali Hassan, Abdulkadir Ahmed Hussein, and Abdirashid Mohamad Jabane are the key individuals at the heart of the controversy surrounding Jabavu Village (K) Limited, a subsidiary of the Hass Petroleum Group.
The three men, who hold interchangeable leadership positions in both Jabavu Village and Hass Petroleum, are now under investigation following the approval of a Sh1.9 billion loan from the National Bank of Kenya (NBK) for the construction of affordable housing units at Jevanjee Estate in Ngara, Nairobi.
The loan, which was approved in December 2022 and finalized in May 2023, has raised serious questions about the use of public land as security and the potential privatization of public assets for private gain.
Jabavu Village, a real estate development company with interests across Kenya, the Horn of Africa, and Dubai, secured the loan using the title deed for Jevanjee Estate, an approximately 8.9-acre piece of land previously registered under Nairobi Bachelors Jevanjee Estate Limited.
Documents obtained by leaked.co.ke reveal that the land was charged by Jabavu Village as collateral for the loan, despite the company being embroiled in an insolvency suit with Credit Bank at the time.
The land’s transfer to a Special Purpose Vehicle (SPV) in 2019, which saw the shareholding structure change from 99% in favor of Nairobi County to 80% for Jabavu Village, has sparked controversy.
This shift in ownership of the land has raised concerns among Nairobi County Assembly members, who allege that certain county officials facilitated the transfer of public land into the hands of a private developer.
Alvin Olando, the Chairperson of the Nairobi County Assembly Planning Committee, has strongly condemned the privatization of public property and has vowed to investigate the matter thoroughly.
Olando stated that Nairobi residents would not tolerate the illegal transfer of public assets for private benefit, emphasizing that the issue would be fully addressed in the ongoing inquiry.
The Sh1.9 billion loan, which was intended to fund the construction of affordable housing units at Jevanjee Estate, has sparked concerns regarding the developer’s financial standing and the legitimacy of the entire deal.
Jabavu Village, which has been struggling financially, is banking on the projected Sh7.7 billion in sales from the housing units to recover from its debts.
This projection, however, has been questioned by many, given the company’s ongoing legal battles and its financial instability, as evidenced by the outstanding Sh800 million loan with Credit Bank.
To execute the housing project, Jabavu Village has entered into a contract with Ms. Zhongjiao Third Highway Engineering EA Company. Despite the company’s efforts to recover financially through this housing project, the transparency of the entire deal remains in question.
The altered shareholding structure of the SPV, the use of public land as collateral, and the role of key figures in both Jabavu Village and Hass Petroleum Group have all raised red flags about the integrity of the transaction.
As the investigation by the Nairobi County Assembly continues, National Bank has pledged to cooperate fully, although representatives from Jabavu Village have yet to appear before the committee.
The outcome of this inquiry could have far-reaching consequences, not only for the future of Jabavu Village and its housing project but also for the handling of public land and its potential misuse in the private sector.
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