Kenya’s top investigative agency is urging members of the public to come forward if they believe they were conned by a Nairobi real estate developer accused of fleecing a homebuyer of KSh6.4 million in a housing project that never broke ground.
The Directorate of Criminal Investigations (DCI) issued the public appeal following the arrest and arraignment of the real estate company’s owner, who allegedly received millions from a client under the pretext of building a home in Syokimau, Machakos County.
The complaint, first filed in December 2024, alleges that the company owner took payments under a contractual agreement to build a house in the Oakside Phase 2 development—an estate that, investigators say, remains a ghost site.
“We visited the plot. There is not even a foundation,” one DCI officer close to the case said, speaking on condition of anonymity. “More than a year has passed since the scheduled completion date. Not a single stone has been laid.”
A Deal That Never Materialised
According to investigators, the client agreed to a total project cost of KSh13 million, to be paid in instalments over two years. An initial deposit of KSh3 million was made, followed by further payments. By the seventh month, the buyer had transferred KSh6.4 million—almost half the total cost.
But the construction never started.
The suspect was arrested earlier this month and appeared before the Milimani Law Courts, where he denied all charges. He was released on a bond of KSh1 million and a cash bail of KSh100,000. His next court appearance is scheduled for 12 May.
DCI Director Mohammed Amin has encouraged more potential victims to file formal complaints.
“We have received several reports involving the same company,” the DCI said in a statement. “If you suspect you were defrauded, we urge you to report at our Kiambu Road headquarters as soon as possible.”
Not an Isolated Case
This case is the latest in a worrying trend across Nairobi’s real estate market. Promises of affordable, ready-to-build homes have turned sour for many would-be homeowners, both local and foreign.
In December, the High Court froze the bank accounts of another Nairobi-based developer, after a Rwandese investor living in the United States said he was duped out of KSh129 million (roughly $1 million). He claimed he paid for property that was never handed over.
Consumer protection groups have called for stricter regulation of the sector. “The real estate market is operating in a grey zone,” said Caroline Muthoni, a legal officer with the Kenya Consumer Watch Forum. “We need tighter checks to protect buyers from smooth-talking fraudsters.”
For now, the DCI says its Economic and Commercial Crimes Unit is combing through records and following up on leads.
And for many Kenyans dreaming of homeownership, the warning is clear: due diligence is no longer optional.
