Property dealer accused of obtaining millions of shillings by false pretences in Nairobi 

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Property dealer accused of obtaining millions of shillings by false pretences in Nairobi 

A dispute over a high-end residential property in Lavington on Monday January 19, 2026 took centre stage at a Nairobi court as hearings began in a criminal case in which a property dealer is accused of obtaining millions of shillings by false pretences.

The accused, Grace Kerubo Orioki, also known as Grace Kerubo Omambia Omwega, trading as Nazziwa Investment Limited, is charged under Section 313 of the Penal Code. She is alleged to have defrauded Eunice Mbinya Musembi of Sh65 million in connection with the sale of a house said to have undisclosed structural defects.

Testifying before trial magistrate Rose Ndombi, the complainant told the court that in July 2024 her family expressed interest in purchasing a residential property along Kaputiei Road after seeing it advertised on social media. Upon visiting the house, they met the accused, who presented herself as the seller.

Ms Musembi said the parties negotiated and agreed on a purchase price of Sh75.5 million, with the transaction to be completed within 90 days from August 2024. Payments were to be deposited into a bank account held by Ms Omwega. By the time disagreements arose, the family had paid about Sh65 million, representing approximately 85 per cent of the agreed purchase price.

She testified that the buyers insisted on vacant possession of the property before completion to allow for a thorough inspection. However, the accused allegedly declined to vacate, insisting that full payment had to be made first. The disagreement stalled the transaction, with neither party willing to уступ its position.

Although the accused eventually vacated the house in November 2024, Ms Musembi said access to the property remained restricted. She told the court that only a one-hour supervised inspection was permitted through the parties’ advocates. During the brief visit, the family observed visible cracks on pillars, beams and the servants’ quarters, raising concerns about the safety of the structure.

Ms Musembi said a structural engineer was subsequently engaged, and the resulting report concluded that the building’s structural integrity had been compromised. The report was forwarded to the vendor through advocates, but no repairs or remedial action were undertaken.

With a balance of Sh10 million outstanding, the accused’s advocates later issued a 21-day notice demanding payment, failing which the contract would be rescinded. Ms Musembi told the court she felt legally exposed, having paid the bulk of the purchase price without receiving completion documents or assurances that the house was fit for habitation. She then sought a refund, which was declined, prompting her to report the matter to the Directorate of Criminal Investigations (DCI).

During cross-examination, the defence questioned alleged inconsistencies in the complainant’s testimony, including discrepancies relating to the purchase price and access to the property. Defence counsel argued that the sale agreement was entered into voluntarily and noted that a related dispute is pending before another court, where the disputed funds are reportedly being held. They further maintained that there has been no official public declaration that the house is uninhabitable.

The hearing is scheduled to continue on March 5.

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