This archive report was first published on 14 May 2020.
Off-plan housing schemes have become increasingly popular, with many developers marketing them as an affordable option for homebuyers. However, beneath the glamour of discounted prices and stylish designs, a web of conmanship lies.
As reported by The Standard in 2020, many house-buying schemes have collapsed, leaving investors with significant financial losses.
Off-plan buying involves purchasing a property before it has been built, often with the promise of discounted prices. However, this comes with significant risks, including the possibility of developers fleecing investors.
According to Paul Maurice Syagga, a land economics expert at the University of Nairobi, off-plan housing units are often purchased while under construction, with buyers taking a risk that the developer will complete the project on time and in full.
"They are usually discounted in price in comparison to a completed unit because the buyers have partly participated in the construction," Syagga explained.
However, Syagga warned that developers may be fraudsters operating a pyramid-like scheme, fleecing investors and eventually fleeing with their money.
Kenya lacks clear regulations governing off-plan sales, making it easier for developers to take advantage of unsuspecting investors.
