Cytonn Investments has cited delayed regulatory processes and approvals by the National Environment Management Authority (NEMA) as the reason behind the stall in the completion of the firm’s real estate projects.
NEMA is mandated by law to oversee every planned real estate project. Investors have to disclose all details and architectural drawings of the project to NEMA who will then decree if the construction will interfere with the neighboring environment in any way.
Investors are also supposed to issue a gazette notice about the project to the public who will then have 30 days to file a complaint to NEMA in the event that they do not approve of the construction of the project.
According to Cytonn’s Chief Executive Officer Edwin Dande, in a report by the Business Daily, some of its real estate projects in Kilimani and Karen have been put on hold with the firm waiting for approval from the National Environment Management Authority (NEMA) after complaints were raised by concerned citizens in the development areas.
As such, the lengthy approval process has forced Cytonn to base completion of the aforementioned projects on approval dates from NEMA.
“The four-acre parcel of land for Cytonn Towers in Kilimani is intact and we are soon meeting residents neighboring our project site to seek a solution that works for all of us. These issues take a long time; for instance, our Ksh. 5.5 billion project with 60 luxury units at Situ Village in Karen are set to commence after a three-year battle before the NEMA tribunal,” Mr. Dande is quoted as saying by the Business Daily.
This follows the announcement by Cytonn Investments on Monday that it had secured a Kshs. 650 million loan facility deal from the State Bank of Mauritius (SBM Bank Kenya) that will be used to finance the completion of key projects under Cytonn’s real estate offerings.