More than a decade after it was meant to be completed, a multi-billion shilling housing project by the National Social Security Fund in Nairobi remains largely unfinished, with auditors now questioning the explanations given for the prolonged delay.
The Nyayo Embakasi Estate Phase Four project, valued at Sh2.15 billion, has stalled despite being planned as a key part of the fund’s housing programme for middle-income contributors.
An audit by Auditor General Nancy Gathungu shows that only a small fraction of the planned homes had been completed by October 2025.
Audit findings indicate that out of the 324 housing units provided for in the contract, only 44 had been constructed more than 12 years after the agreement was signed. The report raises concerns over poor progress and the lack of proof to back reasons given for the stoppage of works.
“The contract for the construction of 324 units at Nyayo Embakasi was signed on February 21, 2013, for 78 weeks from June 2, 2013, to November 30, 2014, at a total cost of Sh2,155,407,742,” Gathungu said.
“However, the construction stalled. Although management explained that the project stalled due to lack of approval for the change of user by the Nairobi City County government, no evidence was provided to support this explanation. As at the time of audit in October 2025, only 44 units had been constructed.”
The Nyayo Embakasi development was among several housing projects rolled out by the fund as part of its wider push into real estate. The aim was to meet growing demand for affordable homes while generating steady returns for contributors.
Under the housing programme, NSSF targeted estates such as Kitisuru, Highrise in Kibra, and Mountain View, with buyers expected to access homes through a tenant-purchase model. Contributors were to pay deposits ranging between 10 and 15 per cent, then repay the remaining amount over a 15-year period.
The failure to complete the Nyayo Embakasi Phase Four project has, however, created uncertainty over the fate of the remaining 280 units and raised concerns over exposure of member funds tied to the stalled development.
Despite the setback, the fund has continued to commit resources to new housing ventures. Recent investments include two projects worth Sh1.4 billion located in Machakos and Kisumu counties.
Work on the Kisumu project has already started, with the full allocation of Sh700 million provided. The Machakos project, which had initially been planned earlier, was postponed and is now expected to commence within the current financial year ending June 2026.
Additional disclosures show that NSSF is also planning to borrow up to Sh1.6 billion to support the construction of a large housing project in Kisumu’s Milimani area. The project is expected to deliver 162 housing units at a total cost of about Sh1.95 billion.
“The project will be fully funded by funds from NSSF at an estimated cost of Sh1,953,426,539.00. The project will be debt-financed by a debt facility up to Sh1.6 billion. The financing plan results in total loan exposure of 65 per cent compared against the project cost, which is within most lending institutions' lending requirements, which caps the Loan to Value (LTV) ratio to 70 per cent,” the fund said in a disclosure.
LTV refers to the share of a project’s total value that is covered through borrowing.
