County Executive Committee Member (CECM) for Lands, Urban Planning and Housing, Mohamed Hussein, announced the suspension on Tuesday, November 10, 2026.
Hussein said construction would remain stopped until the developer fulfils its obligations to the county government and addresses concerns raised by families who were displaced to pave the way for the project.
The county claims it is yet to receive its agreed share of the houses and commercial spaces under the joint venture agreement.
According to the agreement, Mombasa County is entitled to 10 per cent of the housing units and commercial spaces developed under the project. This would give the county approximately 180 houses from the planned 1,800 units.
The dispute has also raised concerns among former residents of Buxton Estate, who say they were moved out more than seven years ago with promises that they would return to new houses after construction.
Some residents claim they were given KSh240,000 instead of the KSh300,000 they expected to receive to help them pay rent during the relocation period.
They are now demanding that the developer and the government honour the promises made to them.
However, the developer, GulfCap Real Estate, has defended its position, saying the project should be allowed to continue. Its Chief Executive Officer, Chris Ochieng, said 492 homeowners were expected to receive their houses in December.
He also said the county's 10 per cent share would be handed over at the end of the project.
The suspension could delay the completion of the housing project and affect hundreds of workers.
The dispute has left prospective homeowners and former residents waiting for a solution as both sides disagree over how the project should proceed.
Source:https://www.facebook.com/share/p/1BLtyPkSdb/
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