This archive report was first published on 8 September 2021.
On September 8, 2021, a group of over 30 homeowners from Karen Hills Estate in Nairobi filed a lawsuit against Karen Hills Limited and Lordship Africa Fund Management Limited, seeking to stop the collection of a Sh72 million service charge that has not been accounted for since 2011.
The residents claim that the developer has been demanding Sh30,000 per month from each household as service charge since 2011, which brings the total to more than Sh72 million. Despite paying a high amount to maintain the estate, the residents alleged that the developer has not done anything to improve their surroundings, leading to an invasion of rodents and snakes that put their lives at risk.
According to the lawsuit, Karen Hills Limited acquired the 64-acre land from the government in 2012 and incorporated Lordship Africa Fund Management Limited as the master developer. The land was divided into 60 plots of one-acre each to form the Karen Hills Estate and sold to individuals who built their palatial homes.
The sale agreement required the land owners to incorporate Karen Hills Management Company Limited to manage the estate, with the home owners involved in the management company by being incorporated in the board of directors. However, the developer insisted on maintaining exclusive control, and the companies have failed to transfer shares to the home owners or appoint representatives to the management company.
The residents are also accusing the companies of refusing to appoint an auditor to ascertain the accounts of the management company, which runs into millions of shillings. This has made it impossible to know the actual costs incurred in maintaining the posh estate.
“They have refused to provide the amenities for which the service charges are supposed to cater for. They have not involved the home owners in any decision making regarding management of the estate which has resulted to misuse of their funds,” said Issa Mansur, the lawyer representing the residents.
