Man Charged Over Ksh 28 Million Nairobi Housing Fraud Involving 22 Buyers
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A housing deal that promised buyers homes in Nairobi has landed one man in court after detectives linked him to an alleged Ksh 28 million fraud involving 22 victims.
The suspect was arraigned at the Makadara Law Courts on Wednesday, September 2, and charged with multiple counts of obtaining money by false pretences under Section 313 of the Penal Code, alongside a money laundering charge.
According to detectives based at Starehe Sub-County, the accused allegedly operated the scheme between 2024 and 2026, convincing members of the public to pay for houses that they were told would be developed on land in Pangani.
Investigators said the victims were offered houses of different designs and sizes on Land Title No. Nairobi/Block 40/474, allegedly under an Urban Housing Renewal Development LLP project.
Payments were reportedly made through Gladdens Homes Agency, a privately registered entity associated with the accused.
How the alleged housing scheme worked
Detectives allege that prospective buyers were induced to part with money after being given representations about the housing development and the houses they would acquire.
A total of 22 people are said to have lost about Ksh 28 million in the transactions, with investigators now seeking to establish the full extent of the alleged scheme.
The parcel at the centre of the case is not an ordinary piece of land. Nairobi/Block 40/474 in Pangani has previously been identified in official records as the site of a planned urban renewal housing project.
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A 2020 environmental notice for the proposed Nairobi City County Urban Renewal Housing Project listed the parcel as the location for a development comprising 1,562 apartments, 1,074 parking bays and other supporting facilities.
Nairobi County also confirmed in December 2024 that the 5.2-acre Pangani estate, registered as Nairobi/Block 40/474, was part of the Pangani Affordable Housing Project.
At the time, the county said the title was secure and was being held by its advocates while sectional titles for the housing units were being processed.
That background provides context to the property named in the current case, although detectives will be expected to establish in court how the accused allegedly used the housing project in the transactions under investigation.
Court opposes bond as DCI seeks more victims
Prosecutors opposed the accused’s release on bond when he appeared before the Makadara court.
A ruling on the bond application is scheduled for Thursday, September 3, while the case will come up for mention on October 15.
Detectives are also appealing to other members of the public who may have entered into similar transactions involving the accused or Gladdens Homes Agency to come forward.
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Those who believe they may have been defrauded have been asked to report to the DCI Starehe Sub-County offices for assistance and guidance.
The investigation comes as authorities continue to caution members of the public against committing money to property deals without first verifying ownership documents, the legitimacy of developers and the status of proposed housing projects.
For the 22 complainants already identified, the court case now marks the beginning of a process in which investigators will have to prove the allegations against the accused.
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A suspect has been charged over an alleged KSh28 million housing fraud scheme in Nairobi that reportedly targeted 22 victims. DCI Headquarters PHOTO/DCI
