How Rogue Kenyan Developers Scam Unsuspecting Diaspora Homebuyers Out of Millions

The dream of owning a home in Kenya has turned into a living nightmare for hundreds of diaspora investors who have lost millions of shillings to ruthless property developers operating elaborate fraud schemes that would make even the most seasoned con artists blush.

From the dusty outskirts of Malaa to the sprawling suburbs of Ruiru and the coastal paradise of Mombasa, a sinister web of deceit has trapped Kenyans living abroad, many of whom have pumped their life savings into what they believed were legitimate real estate investments, only to discover they have been sold air.

The scale of the fraud is staggering. Josphat Ndambo, a Kenyan based in the United States, parted with a eye-watering Sh4.25 million in November 2021 after being seduced by a slick YouTube video promoting Asali Estate in Malaa.

The video, featuring pristine artistic impressions of three-bedroom maisonettes set against the majestic backdrop of Mount Kilimambogo, was nothing more than digital wizardry designed to separate desperate homebuyers from their hard-earned cash.

Two years later, Ndambo’s dream property remains a fantasy.

The site in Malaa tells a heartbreaking story of abandonment and despair. There is no electricity, no infrastructure, just dilapidated foundations and the shattered hopes of investors who trusted the wrong people.

The mastermind behind Asali Estate, George Mburu, cut his teeth at the now-collapsed Banda Homes Limited before launching Mizizi Africa Homes Limited.

Operating from a plush office opposite Sarit Centre in Westlands, Mburu has mastered the art of living large while his clients languish in financial ruin. In a brazen interview with a popular YouTuber, the former wannabe hip-hop artist boasted about eating life with a big spoon, flaunting his Range Rover, and dismissing critics as mere detractors.

While Mburu lives the high life, Dennis Mwangi, another victim, is fighting a legal battle to recover Sh4.537 million he paid for a phantom three-bedroom bungalow at Peacock Estate along Kenyatta Road. Despite winning an arbitration settlement in June 2024 that ordered a refund within 60 days, Mwangi has not seen a single shilling. The Peacock Estate site mirrors the desolation of Asali Estate, with only incomplete, abandoned units standing as monuments to broken promises.

The fraud extends far beyond Mizizi Africa Homes. Across town, Willstone Homes Limited has ensnared US-based investor Mellen Bwari Okari in a Sh57 million nightmare. Okari purchased five maisonettes in an off-plan development called White Park Gardens through her company, Universal DoubleTree Hotel Limited. What she discovered during a site visit sent chills down her spine.

Not only was the construction marred by shoddy workmanship, but a private investigator uncovered an even more sinister revelation. The property was not even located where the sales agreement claimed. Instead of being in Ruai East, Nairobi County, the land was actually in Mavoko, Machakos County. Worse still, the land registration numbers provided in the sale agreement were completely fabricated. The title Block 3/90489 referenced in all documents simply did not exist.

The three directors of Willstone Homes Limited, Ejidio Kinyajui, Patrick Thuo Marigi, and Victor Muusya Cosmus, have already moved on to their next venture, registering Ubuni Investments from the same Park Suites office in Westlands. Like Mburu, Kinyajui enjoys broadcasting his lavish lifestyle on social media, posting videos of himself flying first class on Emirates, chartering helicopters, and driving luxury vehicles. A single first-class Emirates ticket can cost between Sh1.5 million and Sh2.5 million, yet somehow his clients cannot get their money back.

Perhaps no one epitomizes the audacity of these scammers better than David Mureithi Kanyi, the reclusive businessman behind Kenya Projects. Kanyi perfected a diabolical strategy targeting community-based organizations and offering down payments so low they seemed too good to be true. They were.

George Gitonga learned this lesson the hard way. Five years ago, he stumbled upon a Facebook advertisement for houses in Kamakis. He liquidated his children’s education policy, which had just matured with a Sh2 million payout, and even sold his car to raise an additional Sh900,000. The total Sh2.9 million was supposed to secure a two-bedroom maisonette. Instead, Gitonga joined 36 other victims who were eventually forced to complete construction using their own funds. Even after finishing the houses themselves, the buyers remain in limbo because Kanyi has refused to provide title deeds.

Kanyi, who has since relocated to Mombasa and continues rebranding his operations, deployed similar tactics on the coast. Eva Mmbone Kiti, Nana Mohammed, Faud Ali Ahmed, and Nana Khadija Omar wired Sh13 million for three-bedroom maisonettes at Royal Palm Villas. They later discovered that Kanyi had taken out a Sh55 million bank loan against the same property they had purchased, effectively double-dealing on their investment.

The modus operandi of these fraudsters follows a chillingly consistent pattern. First, they create legitimate-looking companies with professional offices in upscale Nairobi neighborhoods. Then they produce slick marketing materials, complete with doctored images and falsified land registration numbers. They target diaspora investors specifically because distance makes due diligence nearly impossible. Many victims are working multiple jobs abroad to send money home and cannot afford frequent trips to Kenya to physically inspect their investments.

The developers exploit the off-plan model, where buyers pay for properties before construction is complete. This arrangement, poorly regulated in Kenya, has become a breeding ground for fraud. Developers collect millions in down payments, begin minimal construction to create the illusion of progress, then either abandon projects entirely or use new investor funds to partially complete old projects in a classic Ponzi scheme structure.

To add insult to injury, many of these developers sponsor fake awards and recognition ceremonies designed to create an aura of legitimacy. They then hire social media influencers to promote their projects as critically acclaimed and trustworthy. The entire ecosystem is rotten from top to bottom.

Some fraudsters have become even more creative. They identify prime land, approach the owners, and propose subdividing and selling parcels on their behalf. The developers convince landowners that an escrow account is unnecessary, promising to remit sale proceeds minus commission directly. After collecting money from buyers, the developers vanish without paying the landowners. The result is a double fraud where both the original landowner and the buyers are victims, and neither party can legally transfer ownership.

Legislative attempts to address this crisis have stalled. Kirinyaga Central MP Joseph Gitari proposed a Land Amendment Bill requiring land-selling companies to deposit Sh500 million as a licensing fee before registration. The deposit would serve as insurance to refund victims when developers fail to deliver. However, the bill has languished in parliament with little hope of passage.

Two years ago, industry players formed the Association of Real Estate Stakeholders in a supposed effort to self-regulate and discipline rogue operators. The initiative has been a spectacular failure. Many of the association’s own members have been implicated in fraudulent schemes. When contacted for comment on members embroiled in legal disputes, RESA chairman Chrispus Wachira did not respond.

The psychological toll on victims cannot be quantified. These are not wealthy speculators gambling with disposable income. They are teachers, nurses, drivers, and security guards working grueling hours in foreign countries, denying themselves basic comforts so they can send money home to build a future. They dream of retiring in dignity, of having something to show their children, of finally coming home. Instead, they are left with worthless paperwork and crushing debt.

The impunity with which these developers operate is shocking. Despite mounting court cases and public exposure, most continue their businesses unabated. Mburu still runs Mizizi Africa Homes. Kinyajui and his partners have simply rebranded as Ubuni Investments. Kanyi operates from Mombasa under new company names. None have faced serious criminal prosecution.

Industry experts point to systemic failures enabling this fraud. The lack of mandatory escrow accounts means developers control all funds with zero accountability. Weak enforcement of construction regulations allows substandard work to proceed unchecked. The National Construction Authority and National Environmental Management Authority approvals are routinely bypassed. Land registry records can be easily forged or manipulated. There is no central database to track developers’ histories or warn potential buyers about problematic companies.

Financial institutions also bear some responsibility. Banks readily provide mortgages and loans against properties with questionable documentation. They fail to conduct adequate due diligence before financing these projects, effectively legitimizing fraudulent schemes.

For diaspora Kenyans, the home-buying process has become a minefield. Trust has evaporated. Even legitimate developers now struggle to attract clients because the market has been poisoned by serial fraudsters. The economic impact extends beyond individual losses. When billions of shillings meant for productive investment vanish into the pockets of con artists, the entire economy suffers.

Some victims have attempted to salvage their investments by pooling resources and completing projects themselves, but this solution only works when the land title is genuine and accessible. In cases where registration numbers are fabricated or properties are encumbered by secret loans, there is no path forward.

The courts offer little relief. Legal battles drag on for years, draining victims of additional resources for attorney fees and court costs. Even when judgments are rendered in favor of plaintiffs, enforcement remains nearly impossible. Developers simply close one company and open another, moving assets between entities to stay one step ahead of creditors.

As more cases come to light, a disturbing picture emerges of an industry riddled with corruption at every level. From complicit officials who process fraudulent documents to real estate agents who knowingly market phantom properties, the rot runs deep. Until Kenya implements comprehensive reforms including mandatory escrow accounts, stricter licensing requirements, criminal penalties for developers who defraud buyers, and a centralized registry of industry players with transparent track records, the carnage will continue.

For now, thousands of Kenyans abroad are left to count their losses and warn others about the treacherous landscape of Kenyan real estate. Their stories serve as cautionary tales about dreams deferred and trust betrayed. The con artists, meanwhile, continue their operations with brazen confidence, knowing that the system designed to protect citizens has instead become their accomplice.

The question is no longer whether reform will come, but whether it will arrive in time to save the next generation of victims from the same fate.​​​​​​​​​​​​​​​​