Mombasa County halts Affordable housing project over unmet obligations

NAIROBI, Kenya, Nov 10 – Mombasa County has announced an immediate suspension of construction works at the Buxton Point housing project, citing failure by the developer to meet obligations agreed upon with the county government and commitments made to former residents of the estate.

County Executive Committee Member (CECM) for Lands, Urban Planning and Housing Mohamed Hussein said construction would remain suspended until the outstanding issues were resolved and the county reached an agreement with the national government.

“There is an agreement between the county and the national government before construction is done. The obligations have not been met. From today, no construction will take place here and I will write a letter halting construction until we reach an agreement,” Hussein said.

The decision places the multi-billion-shilling redevelopment project at the centre of a renewed dispute over the terms of the partnership, the county government’s share of the completed houses and the fate of families displaced to pave the way for construction.

The Buxton project involves the redevelopment of the former Buxton Estate through a partnership between the Mombasa County Government, then under Governor Hassan Joho, and private investors led by businessman Suleiman Shahbal through GulfCap Africa Investment Partners.

The project was designed to replace the old estate with modern affordable apartments and supporting facilities. Government housing project information lists 1,850 units, comprising bedsitters, one-bedroom, two-bedroom and three-bedroom apartments, alongside amenities such as a kindergarten, commercial centre, swimming pool, gym and recreational spaces.

However, the redevelopment has been dogged by concerns over the resettlement of former tenants and the implementation of commitments made under the joint venture arrangement.

A total of 522 tenants were displaced from the old estate on March 5, 2021, to pave the way for the project. They were each given Sh240,000 to facilitate relocation and were offered an opportunity to purchase units in the new development.

Some former residents have, however, raised concerns that they cannot afford the new houses, while others have questioned when they will be allowed to return to the estate.

The county has also been pursuing its share of the development. Under the arrangements cited by the county, the government is entitled to 10 per cent of the housing units and commercial spaces. Correspondence sent to the developer in September 2026 reportedly raised concerns over the allocation and transfer of the county’s share, performance security and other outstanding project obligations.

The dispute has also attracted the attention of the Senate, whose committee on Roads and Housing held a consultative meeting with former Buxton residents in 2025. The residents raised concerns over transparency in the joint venture agreement and delays in implementing recommendations intended to safeguard their interests.

During the meeting, Mombasa Governor Abdulswamad Nassir said the county was committed to ensuring former residents received the 184 units allocated to the county by the developer once the houses were handed over.

The suspension could further delay the completion and handover of the development, while prolonging uncertainty for former tenants who have been waiting for years to return to the neighbourhood.