By Anderson Ojwang
The Ad Hoc County Assembly of Kisumu report has exposed a shocking revelation that County Executive Committee members (CECs) have been unwilling to pay rent for county houses they have been occupying.
Similar senior staff in the county government of Kisumu have too been reluctant to pay rent and have been living for free on the premises.
The committee wrote: “The Report explicitly states that a significant number of County Government employees in higher ranks, including County Executive Committee Members, have been unwilling to pay rent; that despite repeated follow-ups, many either ignore communication or remain non-responsive to official correspondence; and that this creates substantial challenges in enforcing tenancy obligations.”
Governor Prof Anyang’ Nyong’o, in previous correspondences to CEC Finance George Omondi Okong’o, directed him to initiate a check-off system for government employees, but this was never implemented.
“Some tenants making payments through payroll check-off deductions continue to show arrears in their accounts, indicating gaps in remittance reconciliation between the payroll office and the rent accounts,” the committee wrote.
It has also emerged that some of the properties and houses that were rented out have changed hands and are now individually owned.
Some of those houses are now owned by senior government officers, politicians, businesspersons, politically correct individuals, and relatives of senior officers in both national and county government.
For instance, in the upmarket Milimani Estate, the county government had 78 homes, but currently the government only has 17, while 61 homes have changed hands, with title deeds now in individual names.
The report noted that rent collection had dropped from Sh20,447,477 in Financial Year 2023/24 to Sh6,183,882 in FY 2024/25.
The committee said rent collection had dropped by 69 per cent after the city engaged Charcon Properties Limited.
“The FY 2024/25 rent collection of Kshs. 6,183,882 represents the lowest recorded rent collection in the five-year period under review, and marks a decline of Kshs. 14,263,595 from the previous financial year — the steepest single-year collapse in any Own Source Revenue stream over the review period. This decline occurred in direct correspondence with Charcon Properties Limited’s engagement as managing agent,” the report read.
Sources told Western Insight that the agent furnished the committee with a list of tenants, some with title deeds, while other premises had no buildings or were owned by other institutions.
The committee, in its engagement with the Kisumu City Board, revealed that revenue performance has consistently underperformed against targets over three years despite significant projection increases and despite the delegation of revenue collection roles to the City Board; that revenue monitoring was mainly report-based rather than real-time; and that the city currently operates a billing-oriented system rather than a fully integrated revenue management system.
The committee found that Charcon Properties Limited was contracted to supervise rent collection on behalf of the City Board, and “that the County is in the process of procuring a new revenue system which did not appear materially different from the existing one as presented,” the committee wrote.
According to the Property Management Progress Report dated 3rd May 2026 and the handover documentation referenced, the following estates, residential blocks, and institutional houses were placed under Charcon Properties Limited’s management:
Residential Blocks — Estates and Housing Units:
- Block 11 (Units 37, 38, 43, 46, 47, 47B, 47C, 47D, 48, 49 and 52)
- Block 4 (Units 149A, 149B, 158A, 158B, 154A and 154B)
- Block 8 (Units 79, 79A, 148A, 148B, 208, 208A, 258A, 258B, 258C, 258D, 258E, 258F, 259A, 259B, 259C and 259D)
- Block 10 (Units A, B, C and D)
- Block 12 (Units 91A, 91B and 91C)
Slaughter Houses:
- Slaughter House A, Slaughter House B and Slaughter House C; and Kibuye Estate (approximately 45 units)
Institutional and Special Facilities:
- Ober Kamoth Health Centre
- Got Nyabondo Health Centre
- Mama Ngina Children’s Home
- Old Fire Station
On New Leases and Renewals:
The report records that lease renewals have been materially impeded by the non-availability of updated Finance Act rental rates. The report states: “Renewal of Tenancy Agreements and leases is further dependent on the new County Finance Act, which prescribes the updated rent rates to be applied. This document has not been availed to us, making it impossible to commence the latest round of lease renewals.”
On Maintenance:
The report identifies extensive maintenance deficiencies including: plumbing, electrical and structural repairs required urgently at Kibuye Estate; leaking roofs at Block 12-A and Block 12-B (requiring complete overhaul); non-operational plumbing at House 11/49; and the Ober Kamoth Health Centre units being described as uninhabitable due to absence of water and leaking conditions, rendering rent enforcement impossible until conditions are addressed.
On Occupancy:
Occupancy levels across estates remain high, with most units occupied despite ongoing disputes and maintenance challenges. Several units are non-revenue generating due to occupation by county departments, security personnel, and institutional users. Some units remain unoccupied due to dilapidated conditions, pending repairs, or unresolved ownership claims. A comprehensive physical verification exercise is stated to be ongoing.
On Non-Revenue Generating Units:
The report identified multiple units that were non-revenue generating, including: Houses 4/149, 4/149A and 4/149B — occupied by KIWASCO, whose headquarters were constructed on these sites; Houses 8/148 and 8/148A — occupied by the Governor’s security detail; Houses 8/208A and 8/208B — used by the County First Lady as offices; and Houses 8/258A through 8/259D — found to belong to NSSF and since demolished for modern housing construction.
These units generate no rental income to the county.
