This archive report was first published on 12 June 2020.
Off-Plan Development Scams in Nairobi ¶
Over the past decade, off-plan development projects have been a popular route to home ownership for low-income earners in Nairobi and its outskirts. However, in recent times, these projects have turned into a bitter cocktail, with buyers sinking millions of shillings into houses that fail to meet their expectations.
One such project is Mahiga Homes, which has been at the center of controversy in recent months. The company, led by CEO Peter Nyaga, has been accused of flouting the national building code and engaging in underhanded deals to secure approvals.
According to reports, Mahiga Homes has been using fake architectural designs and photos to lure investors into buying units that are yet to be completed. The company has also been accused of failing to deliver houses on time, leaving investors with huge losses.
One resident, who wished to remain anonymous, described the living conditions at Mahiga Homes as 'darkness' due to the lack of electricity. 'We're living here in darkness, and the management isn't even having the courtesy to remedy the situation,' the resident said.
Another resident, who also wished to remain anonymous, revealed that some of the residents had to buy their own generators to power their homes. 'Some of us have even bought our own generators because as you can see, we are on our own,' the resident said.
Investors who have sunk millions of shillings into Mahiga Homes are now facing huge losses. The company's failure to deliver houses on time has left many investors feeling frustrated and betrayed.
As the controversy surrounding Mahiga Homes continues to unfold, it has raised questions about the regulation of off-plan development projects in Nairobi. The incident has also highlighted the need for investors to do their due diligence before investing in such projects.
