A court on Monday, January 19, heard how a luxury home purchase in Lavington, Nairobi allegedly turned into a multimillion-shilling fraud dispute, with a property dealer facing trial over claims that she obtained Ksh.65 million through false pretences.
Grace Kerubo Orioki, also known as Grace Kerubo Omambia Omwega and trading as Nazziwa Investment Limited, faces charges under Section 313 of the Penal Code. Prosecutors allege that she defrauded Eunice Mbinya Musembi during a transaction involving a residential house on Kaputiei Road, which was later found to have hidden structural defects.
Musembi told trial magistrate Rose Ndombi that her family became interested in the property in July 2024 after seeing it advertised on social media. They later visited the house, where they met the accused, who introduced herself as the seller.
The complainant said the parties agreed on a purchase price of Ksh.75.5 million, with completion scheduled within 90 days from August 2024. Omwega provided a bank account for payments, and by the time the deal began to unravel, the buyers had already paid approximately Ksh.65 million – around 85 per cent of the agreed sum.
Dispute Over Access and Property Safety
Musembi testified that the family requested vacant possession before completing the transaction to carry out a thorough inspection of the house. The accused refused, insisting that full payment had to be made first. The standoff stalled the deal, with neither party willing to compromise.
Although Omwega vacated the property in November 2024, Musembi said access remained restricted. The family was allowed only a one-hour supervised inspection, conducted under the supervision of legal representatives.
During the inspection, the family noticed cracks on the pillars, beams, and in the servants’ quarters, raising serious concerns about the property’s structural safety. A structural engineer was later engaged, and the resulting report confirmed that the house’s structural integrity had been compromised.
The report was forwarded to the accused through her advocates, but no repairs or remedial measures were undertaken, the court heard.
Legal Proceedings and Refund Demand
With Ksh.10 million still outstanding, the accused’s advocates later issued a 21-day notice demanding payment and warning that failure to settle the balance would lead to rescission of the contract.
Musembi told the court that she felt legally vulnerable after paying most of the purchase price without receiving completion documents or assurances that the house was safe to occupy. She subsequently demanded a refund, which the accused declined, prompting her to report the matter to the Directorate of Criminal Investigations (DCI).
During cross-examination, the defence counsel challenged inconsistencies in Musembi’s testimony, including the agreed purchase price and the level of access granted to inspect the property.
The defence argued that the sale agreement was entered into voluntarily and noted that a related civil dispute is pending in another court, where the disputed funds are reportedly being held. They also maintained that no official authority has declared the house uninhabitable.
The case will resume on March 5, 2026.
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