American Investor Claims He Was Scammed Sh225 Million in 88 Nairobi Real Estate Deal

NAIROBI, February 24, 2026 — An American investor has moved to court claiming he was fleeced of Sh225 million in a botched off-plan property deal linked to the high-profile 88 Nairobi tower, one of the most aggressively marketed luxury developments in the capital.

In papers filed before the Environment and Land Court at Milimani, the investor identified as KYH paints a grim picture of what he describes as a calculated scheme that saw him lose control of more than Sh161 million after committing to purchase ten premium apartments in the development.

The project, undertaken by Eighty-Eight Nairobi Limited, was marketed as a landmark residential skyscraper in Upper Hill, touted as Africa’s tallest residential tower and a symbol of opulence.

KYH says he signed the agreement in March 2024 at a total consideration of Sh225 million, drawn by promises of high returns and world-class finishes.

According to the court filings, by October 2024 he had fully paid for seven of the units, remitting about $1.25 million, more than 70 percent of the purchase price. He claims he was then hit with a final notice demanding an additional $250,000 within three days, failure to which the developer would cancel the agreement.

The investor argues that the notice period was unreasonable, particularly given that he is based in the United States and frequently travels.

He further alleges that despite instructing the developer to channel all formal communication through his Kenyan lawyers, critical notices were sent directly to him, a move he terms deliberate and designed to trigger a technical default.

“What was presented as Nairobi’s iconic address has turned into a financial trap,” he states in a sworn affidavit, accusing the developer of denying him a fair opportunity to regularise the alleged arrears.

The suit also names Jonathan Jackson, associated with the project through the Lordship Group, as having played a central role in marketing the development to diaspora investors. The tower was widely promoted overseas as a premier investment opportunity offering luxury living and strong capital appreciation.

Other respondents in the case include Bank of Baroda, the Nairobi Lands Registrar and the Attorney-General.

KYH is seeking declarations that the termination of his agreement was unlawful and that his proprietary interests in the fully paid units remain valid.

He wants the court to restrain enforcement of forfeiture clauses and to order restitution of the sums paid.

At the heart of the dispute is a contractual clause allowing the developer to retain up to 50 percent of the purchase price as liquidated damages in the event of default.

In this case, the investor says that would translate to roughly Sh113 million. He argues the amount is punitive, disproportionate and amounts to unjust enrichment.

He further alleges that the developer utilised his $1.25 million to fund construction while declining to transfer title or refund the money.

Under the agreement, any refund would allegedly be conditional upon resale of the units and would not attract interest, leaving him exposed indefinitely.

In a dramatic turn, the investor has urged the court to allow other buyers in similar circumstances within the same project to join the proceedings, potentially opening the door to a broader legal battle over off-plan sales practices.

The case adds to growing unease around Kenya’s off-plan property market, where glossy marketing campaigns targeting diaspora buyers have increasingly collided with disputes over delays, cancellations and forfeiture of deposits.

Critics have long faulted regulatory oversight, warning that weak enforcement creates fertile ground for abuse.

The respondents had not filed their defence by the time of publication. The matter is awaiting directions at the Milimani court.

For now, the dispute casts a long shadow over 88 Nairobi and raises fresh questions about risk, transparency and accountability in a property sector that continues to court investors with promises of prestige and profit.