A client based in Netherlands has sued to have the company liquidated after failing to deliver her a home she paid Sh5.9 million for.
Ms. Obuya, a staff of International Organisation for Migration (IOM) says in court papers that the company has not delivered the maisonette she paid for in January 2019.
She also gave the firm an option of repaying her Sh5.9 million as efforts to get a refund her deposit have been futile despite demands for payment.
In 2019, Ms. Obuya wanted to buy a maisonette in Banda Homes’ development in Thika, dubbed Red Oak Estate.
However, the construction stalled in 2020, with the contractor asked to leave the site.
Banda Homes blamed the stalled development on COVID-19 pandemic, but clients would have none of it.
Not even a single house has been handed over to the owner, with most structures lying incomplete with no signs of completion any time soon
About Sh3.9 billion is locked in the failed development initiative.
Under the agreement that Ms. Obuya and Banda Homes signed in 2019, the construction was to be complete within 15 months. The COVId-19 pandemic as scammer Andrew Kamau puts it, didn’t affect the construction, Ms Obuya and others should have received the keys and title deed to their new home in June 2020.
Additionally, the deal also indicated that Ms. Obuya’s payment would earn interest of 14 percent per year from the date of signing, which means that Banda Homes now owes the accountant more than Sh6 million.
“The company failed to deliver the unit and has refused, neglected, and/or failed to pay the petitioner the sum of Sh5,906,060. The petitioner does not, nor does anyone on its behalf hold any security on the company’s assets over the debt owed. The company has been unable to pay the amount due and owing despite demand and/or issuance of a notice,” Ms. Obuya says.
She added, “The petitioner therefore humbly prays that Banda Homes Limited be liquidated under the provisions of the Insolvency Act, 2015… That the Official Receiver, as a qualified and authorized insolvency practitioner, is appointed as interim liquidator.”
However, Banda Homes are yet to respond to the liquidation petition.
Scammers and failures
Banda Homes is the third real estate company to face liquidation petitions in court Cytonn High Yields Solutions LLP and Home Afrika – are also in court fighting liquidation petitions.
On the other hand, Home Afrika is fighting off an insolvency petition filed by Ecobank.
The bank claims the firm is unable to repay a disputed Sh983.5 million loan.