Nairobi Woman Accused of Sh65 Million Lavington Property Scam

A Nairobi property dealer is on trial over claims that she defrauded a buyer of Sh65 million in a failed luxury home transaction in Lavington that collapsed after alleged structural defects were discovered.

Grace Kerubo Orioki, also known as Grace Kerubo Omambia Omwega, is accused of obtaining the money from Eunice Mbinya Musembi through false pretences in connection with a high end residential property on Kaputiei Road.

The court heard that Orioki, who was trading as Nazziwa Investment Limited, had agreed to sell the house to Musembi and her family at a purchase price of Sh75.5 million.

The agreement required completion within 90 days from August 2024.

Testifying before Magistrate Rose Ndombi, Musembi said she identified the property in July 2024 after it was advertised for sale on social media and later met the accused, who presented herself as the vendor.

She told the court that by the time the dispute arose, she had already paid about Sh65 million, approximately 85 per cent of the purchase price, through bank transfers from Standard Chartered Bank to I&M Bank.

Musembi said the payments were made in good faith on the understanding that the house would be vacated to allow a proper inspection before the balance was cleared.

“We were clear that we wanted to view the house when it was vacant before paying the balance,” she told the court.

According to her testimony, the transaction stalled after the accused declined to vacate the premises, insisting that full payment had to be made first.

The disagreement persisted for several weeks.

Musembi said the accused eventually vacated the house in November 2024, but access remained restricted.

She told the court that their advocates were only granted a one hour supervised inspection, which she said was insufficient to assess the condition of the property.

During the inspection, Musembi said they observed visible cracks on pillars, beams and the servants’ quarters.

Alarmed by the findings, she said they engaged a structural engineer who later prepared a report indicating that the building’s structural integrity had been compromised.

The report was shared with the vendor through advocates alongside a request for remedial works, Musembi testified.

She said no repairs were undertaken and communication later broke down, even as a balance of Sh10 million remained unpaid.

Instead, she said she was issued with a 21 day demand notice requiring her to clear the balance or risk termination of the sale agreement.

“We did not feel protected. We had paid most of the money, but the house was not in a condition we could live in,” Musembi told the court.

She said she opted to terminate the transaction and demanded a refund, but none was forthcoming.

She added that the property was later put back on sale, prompting her to seek the intervention of the Directorate of Criminal Investigations.

Prosecutors told the court that the accused restricted access to the property despite repeated requests for inspection and declined to refund the money, leaving the buyers exposed after paying a substantial portion of the purchase price without receiving completion documents.

During cross examination, the defence challenged Musembi’s testimony, arguing that the sale agreement was entered into voluntarily and that its terms were clear on timelines and vacant possession.

Defence counsel maintained that access to the house was granted and disputed claims that inspection was denied.

They also pointed out that no official public or government authority has declared the house uninhabitable.

The defence further argued that a related civil dispute over the same funds is pending before another court, where the money is currently held, insisting that the matter is contractual rather than criminal.

Orioki has denied the charge of obtaining Sh65 million by false pretences contrary to Section 313 of the Penal Code.

The hearing is set to continue on March 5, 2026, when the court will hear further submissions from both the prosecution and the defence.