[Source: The Standard, by Josphat Thiong’o]
City Hall plans to hand over one of its prime properties to a pension scheme as part of a strategy to reduce its Sh70 billion debt.
Revelations contained in the county government debt management strategy paper for the 2019/2020 financial year, show that already negotiations have started with the Local Authorities Pension Trust (Laptrust).
The strategy paper, however, does not specify how much Laptrust is owed, and which property is being targeted in the debt swap.
“To settle this amount owed to Laptrust, the county has negotiated with the statutory creditor for a property swap to transfer to the scheme one of our prime asset in respect to accrued debts,” reads the paper.
This will be the second such transaction. In 2013, the county government transferred Mariakani Estate to Laptrust.
The county owns many houses that can be redeveloped given their current dilapidated state. They include those in Bahati, Ziwani, Landhies Road, Joseph Kang’ethe, Harambee, Mbotela, New Pumwani, Bondeni, Kaloleni, Uhuru and Embakasi estates.
Others are in Maringo, Jerusalem, Jericho, Lumumba, Ofafa and Mbotela, Pangani, Jevanjee, Bachelors Quarters, Jamhuri, Kabete, Juja Road, Gorofani, Kariobangi South, Huruma and Outering.Most of the estates are occupied by county employees.
[Full article: The Standard, by Josphat Thiong’o]
