Purchasers of properties under an off-plan development scheme are confronting mounting frustration as Banda Homes delays house completions two years after receiving payments. The company, which sold units along Thika Superhighway's Pinewood and Rosewood estates, has yet to finalize construction, with buyers reporting incomplete infrastructure and substandard workmanship.
Each buyer paid Sh. 3.9 million for their units, but a recent site inspection revealed no progress on the project. Developer Andrew Kamau attributed the setbacks to pandemic-related disruptions, though this is not the firm's first legal entanglement. In 2018, the company faced allegations of misappropriating Sh. 1.5 billion in deposits, with reports indicating funds were diverted to land acquisitions and ongoing projects.
Banda Homes has rebranded multiple times since 2011, a strategy critics argue aims to evade accountability for unfulfilled obligations. Legal experts highlight systemic issues in real estate contracts, noting developers often include clauses shielding them from liability. This pattern mirrors broader industry challenges, with firms like Gakuyo Real Estate and Diamond Property Merchants also facing litigation over similar practices.
Advocate Gachie Mwangi, citing High Court records, emphasized that buyers frequently encounter exploitative terms in housing agreements. The case underscores persistent vulnerabilities in Kenya's property market, where delayed projects and financial losses remain common complaints among homebuyers.
