The legality of the urban renewal initiative, set to bring down old estates and replace them with modern houses has been probed by the County Assembly of Nairobi.
The County Assembly Planning and Lands Committee poked holes into the 300 billion project contracts, terming them illegal.
The committee said that no housing policy was used when signing the contracts, thus making them illegal because they were not anchored in law.
The contract was given to Edermann company, to develop phases 1 and 2 of the urban housing project on Ngong Road at a cost of Sh48 billion.
Appearing before the committee, Edermann company director Zebin Yang defended the legality of the contracts, saying they had the backing of the national government and the City Hall executive.
The committee pressed Yang to explain contentious clauses in the contracts such as one that required the county executive not to disclose any contents of the contract to third parties.
It was also revealed that there existed a clause that gave the developer the power to change prices for the housing units without seeking the input of the county government.
Yang said: “We are ready to amend clauses such as those touching on pricing of the houses because we recently changed the house designs. We did this to ensure that they were in line with the housing policy issued by President Uhuru Kenyatta.”