Off-plan developer Banda Homes, have once again come to the limelight after a section of their clients claimed they had been scammed to the tune of Ksh. 3.9 billion by the firm.
Investors in two of the firm’s project exposed the matter to the media, following reports that the firm had refused to meet them and answer to their questions on the project.
The affected buyers had entered into a contract with the real estate developer expecting delivery of complete homes within two years as per the contract. The buyers have decried the fact that more than two years after they bought into the projects, they have no solid prospects of homeownership.
The buyers have threatened legal action against the developer for the unfulfilled contract in development of the Pinewood and Rosewood estates along Thika superhighway. Buyers had each paid Ksh. 3.9 million for the houses which were supposed to be delivered by April, 2019.
Andrew Kamau, the firm’s CEO told Citizen TV that the COVID-19 pandemic is to blame for the developer’s woes.
“It is true that we have experienced delays due to late payments from clients and a slowdown in work. We also underestimated the amount of work required to complete the projects. All other sectors of the global economy have been affected by the current pandemic,” he said.
Media reports show that some projects by Banda homes have in the past been shrouded by claims of fraud and loss of investor money. In February 2019 the firm was accused of defrauding buyers of Ksh. 1.5 billion.
The firm has since fought hard to shed off the long shadow of fraud hanging on its name.
The latest scandal is a blow to off-plan property developers a handful of whom have been blamed for impairing investors’ capital. Other recent scandals include Gakuyo real estate, Ekeza Sacco, Suraya properties and others.
The backlash will see property developers lose business as the past two years have seen great erosion of trust in off-plan deals.
Read; How to analyze off-plan property investments
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