A contested high-value house sale in Nairobi’s Lavington neighbourhood is now before the criminal court, with a property dealer accused of defrauding a buyer of Ksh65 million in a transaction that collapsed over alleged hidden defects.
Grace Kerubo Orioki, also known as Grace Kerubo Omambia Omwega, who operates under Nazziwa Investment Limited, is charged with obtaining money by false pretences under Section 313 of the Penal Code.
The prosecution claims she received the money from Eunice Mbinya Musembi in connection with the sale of a residential property that was allegedly misrepresented.
When the hearing opened before trial magistrate Rose Ndombi, Musembi told the court that her family became interested in the Lavington house in July 2024 after seeing it advertised online.
She testified that they later toured the property along Kaputiei Road, where they met the accused, who introduced herself as the owner and vendor.
According to Musembi, negotiations followed and the parties settled on a purchase price of Ksh75.5 million, with the transaction expected to be completed within 90 days starting August 2024.
She said the agreement required payments to be deposited into a bank account provided by Omwega.
By the time the deal ran into difficulties, Musembi told the court that her family had already paid approximately Ksh65 million, representing about 85 per cent of the agreed amount.
She testified that the buyers sought vacant possession before final completion in order to carry out a comprehensive inspection of the property.
However, the accused allegedly refused to vacate, insisting that full payment had to be made first.
The standoff, she said, stalled the transaction.
Although the accused eventually moved out of the house in November 2024, Musembi said access to the property remained restricted.
She told the court that only a one-hour inspection was later permitted, under the supervision of advocates representing both sides.
During that limited inspection, the family allegedly observed cracks on structural pillars, beams and the servants’ quarters.
Musembi said they then engaged a structural engineer, whose report concluded that the integrity of the building had been compromised.
She testified that the report was shared with the vendor through advocates, but no repairs or remedial works were undertaken.
With about Ksh10 million still outstanding, Musembi said the accused’s lawyers later issued a 21-day notice demanding payment of the balance, warning that failure to do so would result in cancellation of the agreement.
She told the court that she felt legally vulnerable after paying most of the purchase price without receiving completion documents or confirmation that the house was safe for occupation.
Her request for a refund was declined, prompting her to report the matter to the Directorate of Criminal Investigations.
During cross-examination, defence counsel disputed parts of Musembi’s account, citing alleged inconsistencies regarding the purchase price and the level of access granted to the buyers.
The defence argued that the agreement was entered into voluntarily and pointed out that a related civil dispute is pending before another court, where the disputed funds are reportedly being held.
They also maintained that no official finding has declared the house uninhabitable.
The hearing is scheduled to continue on March 5.
