How Diaspora Investors Are Losing Millions to Fraudulent Schemes

A rising wave of real estate fraud in Kenya is targeting eager investors, particularly Kenyans in the diaspora looking to invest back home. Lured by promises of secure investments, many are losing substantial sums to deceptive marketing, questionable land deals, and vanishing developers—leaving behind financial ruin and lengthy legal battles.

Unscrupulous developers exploit the trust and patriotism of Diaspora Investors, selling dream homes that never materialize. Below are some of the most controversial cases exposing this alarming trend.

Willstone Homes: Broken Promises and Legal Battles

Willstone Homes Limited is under scrutiny after failing to deliver on its Manna Residence project, heavily marketed to Kenyans in the US.

• Julius Njeru, a US resident, invested Sh8.95 million in a three-bedroom bungalow in Ruiru after seeing an enticing ad on Kenya Diaspora Media, a YouTube channel run by Jeremy Damaris.
• After paying an initial Sh2 million deposit, construction never began. Willstone Homes gave inconsistent explanations, prompting Njeru to hire a private investigator.
• The probe revealed the land was owned by Majik Consultancy Limited, a fact Willstone had concealed. Njeru eventually secured a full refund after a lengthy dispute.

Another Diaspora Investors, Joseph Kiiru, paid Sh4.2 million upfront for a similar property, but construction only started a year later—far beyond the agreed 90-day timeline. When Willstone demanded the remaining balance under threat of resale, Kiiru sued. The Ruiru Law Courts issued an injunction blocking the property’s transfer, with a hearing set for June 20.

Troubling Links to Collapsed Banda Homes

Investigations reveal that Ejidio Kinyanjui, former manager of the failed Banda Homes (which allegedly vanished with Sh5 billion in investor funds), now heads Willstone Homes. Other directors linked to past controversies include Thuo Marigi and Victor Muusya, who have been embroiled in internal legal disputes over company control.

Mahiga Homes: Another Abandoned Project

Near Ruiru, Mahiga Homes’ Rock Gardens 2 stands as a ghostly reminder of another collapsed venture. Marketed as a premium gated community, the project stalled after investors paid millions, leaving behind empty plots.

• Cynthia Mwanthi, a retired teacher, invested Sh5.5 million for a three-bedroom home—only to find an overgrown, abandoned plot.
• Joseph Mungai, a diaspora returnee, paid a similar amount in 2019, expecting a serene retirement home. Instead, the seven-acre estate is now a wild thicket.

Despite numerous complaints, directors Patrick Muchoki and Joseph Ruhiu have remained unresponsive, leaving investors in limbo.

The Role of Marketing Influencers in Luring Investors

A key factor in these scams is aggressive online marketing, particularly through channels like Kenya Diaspora Media, hosted by Jeremy Damaris.

• Damaris has promoted Willstone Homes and Mahiga Homes as trustworthy, assuring diaspora investors of secure investments.
• As lawsuits pile up and projects fail, questions arise about the ethics of influencers who endorse developers without verifying their credibility.

Urgent Need for Stronger Regulations

Kenya’s real estate sector remains a minefield for fraud, especially in off-plan housing, where developers collect funds upfront but face little oversight.

Key Recommendations:

1. Stricter developer licensing to prevent repeat offenders from rebranding.
2. Mandatory escrow accounts to ensure funds are only released upon project milestones.
3. Diaspora investor education on conducting independent due diligence before investing.

Without urgent reforms, more Kenyans—especially those abroad—will continue falling victim to these costly schemes.

Final Thought:
“If it sounds too good to be true, it probably is.” Investors must verify all claims, seek legal counsel, and demand transparency before committing funds to any real estate project.