Property dealer charged over Ksh.65M Lavington house fraud

Grace Kerubo Orioki, also known as Grace Kerubo Omambia Omwega, trading as Nazziwa Investment Limited, was charged under Section 313 of the Penal Code.

Prosecutors alleged that she defrauded Eunice Mbinya Musembi in a transaction involving a residential house on Kaputiei Road that was later found to have undisclosed structural defects.

Appearing before trial magistrate Rose Ndombi, Musembi told the court that her family became interested in the property in July 2024 after seeing it advertised on social media.

They later visited the house, where they met the accused, who presented herself as the seller.

According to the complainant, the parties agreed on a purchase price of Ksh.75.5 million, with completion set for 90 days from August 2024.

Payments were to be made into a bank account provided by Omwega. By the time the deal began to unravel, the buyers had paid approximately Ksh.65 million, about 85 per cent of the agreed sum.

Musembi testified that the buyers requested vacant possession before completion to allow for a comprehensive inspection of the house, but the accused declined, insisting that full payment had to be made first. The standoff stalled the transaction, with neither party willing to budge.

Although the accused vacated the property in November 2024,  Musembi said access remained limited. She told the court that only a one-hour supervised inspection was allowed through the parties’ advocates.

During the visit, the family observed cracks on pillars, beams and the servants’ quarters, raising concerns over the building’s safety.

A structural engineer was subsequently engaged, and the resulting report indicated that the house’s structural integrity had been compromised.

The report was forwarded to the accused through advocates, but no repairs or remedial measures were undertaken, the court heard.

With a balance of Ksh.10 million outstanding, the accused’s advocates later issued a 21-day notice demanding payment, warning that failure to do so would lead to rescission of the contract. 

Musembi said she felt legally vulnerable after paying most of the purchase price without receiving completion documents or assurances that the house was safe for occupation.

She then demanded a refund, which was declined, prompting her to report the matter to the Directorate of Criminal Investigations (DCI).

During cross-examination, defence counsel questioned inconsistencies in the complainant’s testimony, including the agreed purchase price and the level of access granted to the property.

The defence argued that the sale agreement was entered into voluntarily and noted that a related civil dispute is pending before another court, where the disputed funds are reportedly being held.

They further maintained that no official authority has declared the house uninhabitable.

The hearing will continue on March 5, 2026.