MINISTERIAL STATEMENTS: SALE OF KENYA RAILWAYS CORPORATION HOUSES 2011
However, various assets were retained by the corporation. Part of the Governments strategy to improve the corporation's financial position included the disposal of some of the non-strategic land and assets by outright lease or sale. In order to implement this strategy, an Inter-Ministerial Committee was formed and they prepared a report in September, 2007. This report made recommendations, including the outright disposal of specific properties, re-development and leasing of others. In addition, the committee recommended sale of some of the properties to staff at preferential rates. The report was then tabled to the board of KRC and recommendations were adopted
The Corporation was directed to dispose of the assets at market prices through a competitive process. You may recall that I mentioned that the committee had earlier recommended that the houses be sold to staff at preferential rates. However, when the approval was given, it was conditional to disposal of the assets at market price through a competitive process. Mr. Speaker, Sir, the sale of the 38 houses or plots in South B was advertised in the local Press pursuant to the directive and over 300 bids were received. The sale was by open tender and interested bidders, including members of RVR and KRC were invited to buy tender documents giving full descriptions, including the developments thereon, of all the properties.
The properties were valued prior to advertising to determine reserve prices. Mr. Speaker, Sir, the tender process is now complete and names of the would-be purchasers are not known at this point. All the bidders were to obtain a viewing certificate as a mandatory requirement in the tender documents to ensure they familiarize themselves with the property and the developments on them. The tenders were opened on 11th March 2011, in the presence of all the bidders or their representatives and the bids were readout.
Mr. Speaker, Sir, neither the Ministry nor the Corporation is aware of any inducement having been paid to any person. I request the hon. Member to let myself or any other relevant organization have any evidence in this regard. In addition, no aliens were allowed to participate in the process as all bidders were required to either provide copies of their national identification or certificates of incorporation in the case of companies. Further, the lease termination notices issued to the tenants are in accordance with the individual lease agreements.
Tenants were given notice in order to give buyers vacant possessions as envisaged in the bid documents and, therefore, no forceful evictions are contemplated. In conclusion, let me say that the entire process of the sale of South B houses is being carried out in accordance with the directions given by the Government following the report of the Inter-Ministerial Committee and it is in tandem with the provisions of the Public Procurement and Disposal Act of 2005 and the Public Procurement and Disposal Regulations of 2006.