The National Housing Corporation (NHC) has officially handed over housing schemes to the County Government of Kisii, marking a milestone in efforts to strengthen affordable housing and urban development in the region.
The transfer involved the management of two rental schemes comprising 49 housing units, together with records for a site-and-service project that NHC previously managed.
The handover ceremony was formalized at the Kisii Governor’s office, symbolizing a new era of collaboration between national housing agencies and the devolved units.
The housing units and service schemes were originally constructed between 1974 and 1991, with NHC funding the projects to provide decent, low-cost accommodation.
However, in 2011, NHC assumed control of the properties after the defunct Municipal Council defaulted on loan repayments, as provided for under Section 9 of the Housing Act CAP 117.
Following years of negotiations, Kisii County agreed to settle the outstanding debt, which was reduced from Sh43.9 million to Sh39.4 million. The repayment plan spans three financial years: Sh13 million already cleared in the last financial year, Sh18 million earmarked for this year, and the balance of Sh8.45 million scheduled for 2026/2027.
The handover also unlocked two acres of prime land adjacent to the existing estates, creating an opportunity for new housing projects in the fast-growing town.
Speaking during the event, NHC Board Chairman Yusuf Chanzu praised Kisii County’s commitment to resolving the long-standing debt dispute.
“This is a clear demonstration of goodwill, fiscal responsibility, and partnership. We are confident that under Governor Simba Arati’s leadership, the county will utilize these assets effectively to provide dignified and affordable housing to residents,” Chanzu stated.
On his part, NHC Managing Director David Mathu emphasized the Corporation’s readiness to collaborate with counties in addressing the national housing gap.
“We are confident that this step will enable Kisii County to expand its capacity to provide affordable and decent housing for its residents. We look forward to working together on new housing initiatives, including development of the newly unlocked land,” he said.
Mathu also encouraged other counties with outstanding debts to expedite settlement so that similar handovers and partnerships could be realized nationwide.
Governor Simba Arati welcomed the handover, terming it a breakthrough for the county’s housing agenda.
“We appreciate the flexibility shown by NHC in renegotiating our debt. This handover not only clears long-standing obligations but also paves the way for new housing developments that will benefit our citizens,” he said.
Arati reaffirmed Kisii’s commitment to inclusive housing development, pledging to align projects with both national and county development plans, while ensuring sustainability, affordability, and community participation remain at the core.
The event signified more than a financial settlement — it laid the foundation for joint projects that could transform Kisii’s urban landscape and serve as a model for county–national collaboration in the housing sector.
By Mercy Osongo
