Controversy has emerged over acquisition of the new houses occupied by the former Ubumwe cell residents at Batsinda housing estates in Kagugu seven months after being expropriated. Residents decry an ultimatum from Kigali City Council (KCC) that orders them to start paying off Rwf3.5m for the new houses they have occupied since April this year. “Kigali City Council never gave us an option to come here, some of us are extremely poor and do not have jobs, others are suffering from HIV/Aids, and also we have the aged people who have retired,” one resident only identified as Claude said. A one-page letter from KCC, of which The New Times has seen, requires the residents to pay for the houses by December 20, 2008. “Following the meetings we had, I am glad to inform you that if you were given Rwf3.5m or more during the expropriation, you are requested to pay that house before December 20, but if you were given less, you are advised to approach the housing bank for a loan to top up the required money,” The letter signed by the Mayor, Aisa Kirabo Kacyira reads in part. Residents have complained that the bank loan with 14% interest to be paid in twenty years was too exorbitant. “This does not make sense, with 14% interest, we are likely to pay about Rwf11m in 20 years, it is three times the cost of the house,” another resident intervened. “That is too much money, they said they were working with the bank to help us acquire loans and pay this house, and now we are going to work our entire life for the bank. Some of us we have never had such huge amounts of money in our families,” the distressed resident said. He added that paying for the house would not be a problem since it will be done in a period of 20 years, but the problem is the 14% interest demanded by the bank. Residents claim that they pleaded for help from the Mayor of Kigali City in a letter since July but never got a response. A 66-year old mother complained of having been promised by the Kigali City to get a financial aid of Rwf500,000 to help her and the rest of the residents to start a new life but they have never received a coin. “I was entitled to two categories of funds, financial aid of Rwf 500,000 and my expropriation money, but I have never received even a coin. Now they are chasing me out of the house,” Aureria Mukakimenyi, a grandmother of three told The New Times at her home. “I am old, I don’t have a job, neither do I have energy to work. They have abandoned us and they don’t care about our lives. I have no one to run to and they are chasing me out, where will I go?” Mukakimenyi lamented. 26-year old Mark Kalisa added that young men like him are jobless and also threatened to lose their newly acquired houses for failure to for pay them. When contacted Ephraim Rusurabeza, Kigali City official in charge of Batsinda housing project, noted that everyone was given a choice of either be expropriated to Batsinda housing or elsewhere. Rusurabeza added that Batsinda residents stubbornly don’t want to pay and that most of them have refused to even do as little as inquiring information of how they will pay from the housing bank. Responding to the query of some residents of not beingpaid since they were expropriated, Rusurabeza said that several people were asked to choose whether to be paid or keep their money in the bank as a way to saving. “During the expropriation, everyone was given a chance to choose whether to be given cash or hold their money to start with when time of paying off the loan comes,” Rusurabeza explained. Bruno Rangira KCC’s Public Relationsofficer said that Batsinda housing project was a joint project was the brainchild of Kigali City with other parties including the Social Security Fund of Rwanda (SSFR) and Rwanda Housing Bank (BHR). Each party had a specific role to play to have the whole project of constructing low-cost houses for low income earners at Batsinda including assisting residents acquire loans to pay for the houses. According to Rangira the SSFR was to fund of the project, while BHR’s role was to facilitate lower Kiyovu residents acquire loans in a memorandum of understanding the three parties signed. In case of those who don’t have jobs or incomes, Rangira explained that KCC had established various projects to help residents earn some income. “There are projects that we have tried to integrate different groups at Batsinda like Mushroom farming, brick making and basket weaving,” Rangira said. Gervais Ntaganda the Director General of BHR told The New Times in his office that his bank does not have any understanding with any institution but deals with individuals in case of acquiring loans. Ntaganda confirmed having received the cases from Batsinda seeking loans but on individual basis not as a certain group of people supported by any institution like Kigali City of SSFR. “Our policies on loans are very clear to all our clients, the bank finances 70% of its clients’ loan for a house and we ask 14% interest, the client must pay 30% down payment and a third of his/her income should be paid per month in the agreed period of time to clear the loan,” Ntaganda said. “We have no system that deals with institutions to help individuals, we have no special arrangements in this case,” Ntaganda added. A memorandum of understanding signed by the three parties (Kigali City, BHR, and SSFR) of which The New Times has seen indicates the role of each party. According to article 6.0 of the MoU, the role of the housing bank was to facilitate Kiyovu residents and any interested buyers with affordable and payable loans to be able to buy these houses. Some residents have resorted to look for other banks that would provide them with more affordable lower bank interests. Ends
