The woes began after Philmark System Services Limited, which had been awarded the contract to carry out Phase 1 of the project, filed a petition arguing that the contract had been abruptly terminated.
In court documents that listed Buxton Point Developers Ltd as a respondent, the company argued that the termination was illegal as it did not follow.
Philmark Systems also revealed that it had made progress in the construction and that 70 units were already complete. The first phase of the project was valued at Ksh500 million.
The firm is now demanding compensation of Ksh200 million, claiming that it was yet to be paid for the work it had done.
“Despite the termination of the contract, the firm has not been paid for the work done so far and materials ordered and delivered on-site,” stated the company lawyer.
“I was harassed when I visited the premises to collect materials including computers and laptops,” stated Philmark director Philemon Okello.
This is not the first time that the project has run into headwinds. In April 2021, the residents of Buxton Estate in Mombasa petitioned the Senate to intervene and stop their eviction.
They argued that over 500 families had been kicked out of their homes with no alternative and that they had not been involved in the discussions aimed at converting the 14-acre land into an affordable housing site.
In August 2021, the housing project had been halted by the Senate Committee on Roads and Transport following the complaints lodged by the residents.
Led by Mombasa Senator Mohamed Faki, the residents argued that the project was shrouded in secrecy while being implemented on public land.
President Kenyatta oversaw the groundbreaking ceremony of the Ksh6 billion Project on May 1, 2021. The project is part of his affordable housing pillar of the Big Four Agenda. The other three thematic areas initiated by the ruling regime are Universal Healthcare, Food Security and Manufacturing.