In the 1820s, Gregor MacGregor, a Scottish charismatic soldier and adventurer, invented a fictional country in central America to swindle land investors and settlers. He sold to his victims an imaginary island named Poyais that he claimed to rule.
In droves, thousands of investors bought Poyaisian bonds and land certificates from MacGregor. They later travelled thousands of kilometres to the promised land only to realise Poyais was a fabrication.
The land they thought they owned turned out to be a swamp-infested coast of central America, and their purchase documents were all forgeries. MacGregor was nowhere to be seen after pocketing 1.3 million pounds, making it one of history's most infamous land scams.
In Kenya, a similar con script is playing out with thousands of Kenyans losing millions of shillings to rogue land and real estate companies. Kenyans in diaspora, in particular, are being lured into property investments back home only for it to dawn on them later that they had sunk millions in phony schemes.
The predatory real estate firms are making inroads to America, selling creative concepts to Kenyans there but instead of the promised properties, the investors are locked in tedious court battles seeking refunds.
From left: Patrick Muchoki, the managing director of Mahiga Homes Limited, Ejidio Kinyajui, the managing director of Willstone Homes Limited, and Peter Nyaga, the managing director of Certified Homes Limited.
Photo credit: Simon Ciuri | Nation Media Group
On July 18, 2022, Mr Julius Njeru, who resides in America, came across a marketing video on a YouTube channel named Kenya Diaspora Media. The channel is owned by Jeremy Damaris, who resides in America, but frequents Kenya for marketing gigs especially on land and property.
Mr Jeremy was marketing a housing project - Manna residence - being developed by Willstone Homes Limited. Mr Njeru approached Willstone Homes Limited to buy a three-bedroom bungalow with a domestic servant quarter (DSQ). For Sh8.95 million paid in installments, he would own unit number 13, built on a 50x100ft plot.
Two months later, Mr Njeru made a down payment of Sh2 million to Willstone Homes bank account. The balance of Sh6.95 million was to be paid in 15 monthly instalments of Sh463,333.
However, by November 2022, Mr Njeru noted that Willstone Homes had not started construction. When he sought information on the project, the developer shared inconsistent images.
Manna Residence project by Willstone Homes in Ruiru, Kiambu County on June 3, 2025.
Photo credit: Simon Ciuri | Nation Media Group
Mr Njeru hired a private investigator and an advocate to carry out a further due diligence. He was shocked to be informed that the property that Willstone Homes was selling to him belonged to a third party - Majik Consultancy Limited.
This fact, he has told a court in Kiambu, was not disclosed before execution of the letter of offer. As a result, Mr Njeru opted to withdraw from the transaction citing deceptive marketing and misrepresentation of facts.
Willstone Homes on March 8, 2023, gave a proposal to refund the cash but less than two per cent purchase price.
However, Willstone Homes kept revising the agreed repayment proposal after paying Sh653,322 on August 4, 2023. The firm later cut communication, prompting Mr Njeru to move to Ruiru Law Courts. He sued Willstone Homes seeking to recover a balance of Sh1,306,668.
In its replying affidavit, Willstone Homes admitted spending the plaintiff’s deposit on acquiring the land on which the house was to be built. This cast doubts on the firm’s initial portray it owned the land.
Willstone Homes sought an out-of-court settlement and eventually Mr Njeru received the last instalment of his refund in March, last year.
Joseph Kiiru, another victim
Mr Joseph Kiiru is another client who has sued Willstone Homes at Ruiru Law Courts over the Manna residence project. On March 7, 2022, he entered into a purchase agreement with Willstone Homes for a three-bedroom bungalow with a domestic servant quarter in Ruiru.
The unit was to cost Mr Kiiru Sh8.2 million with a down payment of Sh4.2 million. He paid the deposit. Construction of the house was to start immediately after he had made the Sh4 million down payment, according to the agreement. But works only started in 2023. And the developer demanded the balance threatening to sell off the property to another buyer.
“It was part of the agreement that the construction would be concluded in 90 days. However, the respondent (Willstone Homes) did not commence construction until 2023.That it was part of the agreement that the balance amount would be paid depending on the milestone achieved by the respondent in the construction,’’ Mr Kiiru stated in court papers.
The court has issued an interim order restraining Willstone Homes from selling the house to another buyer. Willstone Homes had issued a demand letter asking Mr Kiiru to top up the balance but he declined maintaining it is the developer who had breached delivery timelines. The case is set for mention on June 20.
Willstone Homes is owned by Ejidio Kinyajui, a former sales manager of Banda Homes Limited, which went under with Sh5 billion investors’ money after failing to deliver paid-for housing units in Ruiru.
Ejidio Kinyajui managing director of Willstone Homes Limited.
Photo credit: File | Nation Media Group
Other directors of Willstone Homes are Mr Thuo Marigi and Mr Victor Muusya, who recently had a bitter court fight among themselves, but which was resolved after the parties reached an out-of-court settlement.
A few metres from the location of the Manna residence project by Willstone Homes is the Mahiga Homes Rock Gardens 2 project. It is a pale shadow of what was envisioned when clients pumped in millions of shillings, hoping to own three-bedroom houses that were going for Sh5.5 million each.
But clients are left building on their own after Mahiga Homes, whose directors are Patrick Muchoki and Joseph Ruhiu, pocketed millions and abandoned the project.
Retirement home after living abroad
"I am willing to help our Kenyans to own houses. Kenyans who are in America fear investing a lot because most of them have been conned. A good name is better than riches and wealth," Jeremy told potential homeowners in one of the events organised by Mahiga Homes. The video is still online.
Ms Cynthia Mwanthi, who was about to retire from teaching, paid Sh5.5 million, hoping the three-bedroom house would be her retirement home.
"I completed paying in 2022. I borrowed a loan from a local bank, and it was guaranteed by my employer, the Teachers Service Commission. I retired last year as a teacher, hoping to settle here, but it is a bush. The directors of Mahiga Homes no longer pick up our calls. I tried seeking a refund and I have given up,” Ms Mwanthi told Daily Nation in an interview on Saturday, May 31.
Mr Joseph Mungai also paid Sh5.5 million to Mahiga Homes in 2019, hoping to also own a three-bedroom house. Mr Mungai hoped it would be his retirement home after living abroad for many years. Today, what was supposed to be a seven-acre gated community is a thicket.
Mr Muchoki, the managing director of Mahiga Homes, admitted he collected money from clients who paid Sh5.5 million for a three-bedroom house at the Rock Garden 2 project in Ruiru.
But he explains the delay in delivering the houses is because the project was supposed to be a collective community gated investment.
Patrick Muchoki, the managing director of Mahiga Homes Limited.
Photo credit: File | Nation Media Group
''The questions you are raising are legitimate, but let me correct you in some areas. This was supposed to be a gated community sitting on seven acres of land housing three-bedroom stand-alone standard maisonettes. A good number of clients paid in full, around 15 to 20 clients, but the majority never paid in full. So we could not continue,’’ Mr Muchoki told Daily Nation .
''This was supposed to be a controlled development, developed and delivered to a client at an individual level. We were supposed to pay Sh5.5 million for a standard three-bedroom house sitting on a 50x100ft plot,” Ms Mwanthi countered.
A copy of an agreement signed with Mahiga Homes, seen by Nation, indicates a house was to be handed over after completing the payments. And assuming about 20 people fully paid for the project, as Mr Muchoki says, Mahiga Homes pocketed Sh110 million.
Today, the people who paid Mahiga Homes for houses in Rock Gardens 2 continue to lament in a WhatsApp group they have formed. The members are exploring pulling together their resources to complete the project on their own.
Mahiga Homes Limited's Rock Gardens Two project in Ruiru, Kiambu County on June 3, 2025.
Photo credit: Simon Ciuri | Nation Media Group
Elizabeth Wangari, Caroline Ongito and Eddah Wanjiku, Kenyans living in the USA, also fell victim to a similar off-plan development.
They had come across the project on Facebook, marketed by Certified Homes Limited, which is owned by Mr Peter Nyaga. Mr Nyaga is a former executive of Mahiga Homes Limited.
The three potential buyers informed the management of Certified Homes Limited that they were interested in a customised off-plan gated estate called Kenyan Women in the USA Gardens (KWITU).
This project was exclusively three-bedroomed houses, majorly targeting Kenyan investors living in the USA.
In April 2022, the three women collectively paid Sh15.5 million- Sh5.5 million each.
Later, drama over the ownership tenure of the land on which Certified Homes Limited was undertaking the project emerged. The land was leasehold, yet they had been convinced in the sale agreement that it was freehold.
On April 10, 2024, Ms Wangari, Ms Ongito and Ms Wanjiku moved to court seeking a refund. The case is still in court.
''The defendant in false pretence to the plaintiffs stated in the purported agreements for sale by saying that they are the registered proprietor of two Land Titles, namely, Land Reference Numbers: Donyo Sabuk/Komarock block 1/450 and Donyo Sabuk/Komarock block 1/58111,’’ court documents state.
''The defendant misled the plaintiffs with false information to the effect that the house units were to be finished in one month once payment was complete, yet for the 2nd and 3rd Plaintiffs, the payments were completed more than 15 months ago, but the house units are not complete. The 1st defendant deliberately provided misleading information on the letters of offer, namely, with regard to the 1st plaintiff, the letter of offer stated the purported land was a freehold in nature, yet for the 2nd and 3rd plaintiffs, respective letters of offer stated that the land was leasehold,’’ the document states.
The management of Certified Homes Limited countered it is the duty of the buyer to carry out due diligence before appending the signature to the sale agreement.
The script is the same for investors who bought another off-plan investment with Certified Homes Limited, dubbed Sukari Heights at Kahawa Sukari. The investment was envisioned to be a 10-floor residential building. Each apartment was going for Sh5 million for a two-bedroom. Today, instead of the luxury apartments, it is a shell of a building.
Peter Nyaga, the managing director of Certified Homes Limited.
Photo credit: File | Nation Media Group
Since last year, when Daily Nation sent enquiries to Mr Nyaga about the complaints from the clients, there has been no response. He never responded to text messages and emails, even after confirming receipt of our enquiries.
Mr William Kiama is another victim. He entered into an agreement with Nairobi-based Vaal Real Estate Limited to buy an off-plan apartment for Sh12 million.
He paid Sh8 million for a one-bedroom apartment in Westlands, Nairobi. Along the way, Vaal Real Estate Limited got another buyer for the same property at Sh14 million.
The developer terminated the agreement with Mr Kiama. Mr Kiama asked for a refund, but the developer refused to give back the entire amount, claiming it is him who had breached the agreement, forcing them to resell. The developer wanted to deduct Sh1.8 million from the Sh8 million Mr Kiama had paid.
Mr Kiama went for arbitration seeking to recover the full amount and punitive damages of Sh4 million, which were awarded, including a 16 per cent commercial interest backdated to June 21, 2021, when he was entitled to the entire refund.
The developer moved to the High Court in Nairobi seeking to set aside the arbitration award and failed. The developer again moved to the Court of Appeal, which dismissed the application with costs. What started as a Sh1.8 million dispute has snowballed into a Sh9 million award against the developer.
In the cutthroat competition for investors, it has emerged that real estate companies are sponsoring award ceremonies and buying awards to raise their influence.
They, in turn, use these awards to market their investments through social media influencers. Daily Nation learned from insiders that a real estate company sponsors a real estate award ceremony with Sh100,000 only to be recognised in different categories as the best overall winner in off-plan development.
Daily Nation reached out to the Real Estate Stakeholders Association (Resa) chairman, James Kinyua, about these claims against their members implicated in fraud and misrepresentation with the intent to defraud buyers.
"I admit there is a big problem in the industry, and most people are not honest. There are genuine concerns that have been brought to my attention both by local and diaspora buyers, and we have so far deregistered some companies from our association. Just like the government has introduced strict measures on gambling, banning the use of celebrities and content creators to market gambling, the same should be extended to real estate because the individuals never verify the authenticity of the companies they are marketing and are only there for money," Mr Kinyua said.
