- The company placed adverts for one bedroom apartments valued at Sh7.8 million at a project named “The Ridge”
- Firm kept blaming Covid-19 pandemic and promised to refund investors in 2021
Three investors have sought the intervention of Parliament fearing they could lose lifetime savings they put into a project by a real estate firm.
In a petition filed by Alego Usonga MP Sam Atandi to the National Assembly, Josephine Awuor, Caroline Atieno and Omondi Abonyo said the company has delayed refunding their money after the housing project failed to take off.
The petitioners claimed the company has been trying to sell off its properties and they fear it might dissolve with their money.
“Efforts to ensure the company honours the agreement with investors have not been productive despite further engagement with the Capital Markets Authority,” they added.
It is their prayer that the National Assembly engages the firm and its partners to clarify how they intend to fulfil their agreement with investors.
They further want the House to hold the company's CEO as responsible for mismanagement and secure a timely refund of investors’ money.
The petitioners stated that the company placed adverts for one-bedroom apartments valued at Sh7.8 million along Kiambu Road in Kiambu County.
“…..To date, nothing has come to fruition with regards to investors,” the petitioners said.
The three said they opted for “off-plan” arrangements and started to make payments in 2017 and continued to do so as and when required.
They added that there was very little activity on site and said the firm through representatives kept explaining to investors verbally that they were finalising other developments.
The petition was presented to the House by Alego Usonga MP Samuel Atandi.
“By the year 2018, some investors who were paying by instalment had each paid in excess of Sh3.9 million during which time it seemed the company had started to experience internal financial problems since no construction ever started,” the petitioners said.
They further added that those who feared for their investments started to ask for refunds and were told they would incur a mandatory 10 per cent loss on their deposits.
The three further added that after many investors started asking for refunds, the company in September 2019 announced it would put the money in its subsequent platform for one year to earn interest at 18 per cent and then start refunding.
“In 2020, the company kept blaming the Covid-19 pandemic and promised to refund investors in 2021, during which they kept sending statements to show interest was being earned,” the petitioners said.