This archive report was first published on 29 August 2019.
Published on August 29, 2019, a recent expose has shed light on the questionable practices of Mahiga Homes, a real estate developer in Kenya.
The company, which claims to be the number one deliverer of houses, has been accused of operating a sham, with its Directors, Patrick Muchoki, Joseph Ruhiu, and Gladys Chania, allegedly involved in a visa and green card scam targeting unsuspecting youths.
According to reports, Gladys Chania, the company's Shadow Investor, was arraigned in court for fraudulently obtaining millions of shillings from the youths, which were then used to fund Mahiga Homes.
The company's Directors have also been linked to a previous company, Mashariki Developers, which went belly up, and they allegedly formed separate companies after its collapse.
Mahiga Homes has been accused of disregarding the national building code and engaging in underhanded deals to secure approvals without inspections.
As a result, many Kenyans have been left with near-collapsing houses, some as new as four months old, with issues such as cracks, faulty ceilings, and non-functional toilets.
Speaking to the media, an owner of one of the affected homes expressed regret over the company's actions, stating, 'We were amazed at the pace. They prided in the fact they can build in six months. But look at us now. We are deep in regret.'
The company's Directors, Patrick Muchoki and Joseph Ruhiu, have been accused of living lavish lifestyles, with Muchoki owning a fleet of vehicles, including a Range Rover Autobiography, and Ruhiu frequently seen driving a Range Rover HSE SVR 5.0.
Reports also suggest that Ruhiu's brother has gone from being a boda boda rider to driving a Range Rover in just one year, sparking questions about how they have managed to amass such wealth.
The authorities have been criticized for not raising a flag on the company's alleged pyramid scheme, with the Directors continuing to live like kings while projects remain at a standstill due to mismanagement of funds.
As the expose continues, the Kenya Revenue Authority (KRA) has been urged to intervene, with employees' remittances, such as PAYE, allegedly being underdeclared, while annual returns point to almost zero profits.
