By Andrew Kariuki
A criminal case stemming from a failed luxury property transaction in Nairobi’s Lavington area opened for hearing on Monday, with a property dealer accused of fraud over a disputed house sale worth Ksh65 million.
Grace Kerubo Orioki, who is also known as Grace Kerubo Omambia Omwega and trades as Nazziwa Investment Limited, is charged with obtaining money by false pretences contrary to Section 313 of the Penal Code.
Prosecutors allege that she unlawfully obtained the said amount from Eunice Mbinya Musembi in a deal involving a residential house allegedly affected by concealed structural defects.
Appearing before trial magistrate Rose Ndombi, Musembi told the court that her family first showed interest in the Lavington property in July 2024 after encountering an online advertisement.
She said they later visited the house along Kaputiei Road, where they met the accused, who identified herself as the seller.
According to Musembi, the parties eventually agreed on a purchase price of Ksh75.5 million, with completion set for within 90 days from August 2024.
Payments were to be made into a bank account provided by Omwega.
By the time the transaction stalled, the buyers had transferred about Ksh65 million, amounting to roughly 85% of the agreed price.
Musembi testified that the buyers requested vacant possession before completion so that they could carry out a detailed inspection of the house.
She said the accused declined to vacate the property, maintaining that full payment had to be made before possession could be granted.
The disagreement, she told the court, brought the transaction to a standstill.
Although the accused moved out of the house in November 2024, Musembi said the family was still denied unrestricted access.
She told the court that only a limited, one-hour inspection was later allowed under the supervision of advocates from both sides.
During that visit, the family allegedly noticed cracks on pillars, beams and the servants’ quarters.
Musembi said a structural engineer was subsequently engaged and the resulting report indicated that the building’s structural soundness had been compromised.
She testified that the report was forwarded to the vendor through advocates, but no repairs or corrective measures were undertaken.
With about Ksh10 million remaining unpaid, Musembi told the court that the accused’s lawyers later issued a 21-day notice demanding settlement of the balance, failing which the agreement would be cancelled.
She said she felt exposed after paying most of the purchase price without receiving completion documents or assurances that the house was safe for occupation.
Her request for a refund was declined, prompting her to lodge a complaint with the Directorate of Criminal Investigations (DCI).
During cross-examination, defence counsel challenged aspects of Musembi’s testimony, pointing to alleged inconsistencies on the purchase price and access to the property.
The defence argued that the sale agreement was entered into willingly and noted that a related dispute is pending before another court, where the contested funds are said to be held.
They also maintained that there has been no official declaration that the house is structurally unsafe.
The trial is set to resume on March 5.
