For a long time now, the property market in Kenya has been in disarray. The multi-billion industry that previously boasted a promising future has now turned into a nightmare for helpless investors who have been victim to the intrigue and greed that now controls the sector.
From Embakasi Ranching, Ekeza, Diamond properties, Gakuyo, Urithi, Suraya and recently Lettas Developers. The pattern of collapse has been steady and there seem not to be any end soon.
The story of Lettas Developers is a perfect example of how greed can ruin even the best of things. In 2016, a group of Kenyan businessmen came together and set up what originally began as one of the most promising property development firms in the country. Now, the company is on the ropes for failing to deliver to its clients. With the delayed delivery of houses promised to clients as far back as two years ago, one might wonder, just when and how did things get this bad at Lettas?
A letter drafted by one Caroline and Steve Wandeto, a client of the Company, shows the trials and tribulations that the clientele have been through under the intrigues that have plagued the developer.
A keen examination of the company’s origin, however, brings one to a waking realization. Those responsible for bringing the firm together are among them, the Notorious Nderitu Brothers — Joseph Mwai and Paul Wanjohi Nderitu — Andrew Muhiu Kamau, Patrick Muchoki, Joseph Ruhiu and Martin Mwangi.
It is believed that immediately the company was formed, they went on a selling spree and began the development of houses, but this, as we are about to find out, is where everything went wrong.
Once the cash started flowing in, as is the norm in most Kenyan development firms, directors began to struggle with differences — with each one of them yearning for the lion’s share of the company’s proceeds. What followed was the formation of cliques and sub teams within the firm; all with an aim of fleecing it dry.
It was from these same sub teams — built on utmost greed and deceit — that other new real estate companies operating with devious objectives would sprout, with a sole goal of fleecing investors, enriching themselves and hitting the road to other ventures, never to be seen again.
Exclusively acquired documents from the Registrar of Companies confirm this to be true. The ‘Notorious Nderitu Brothers’, Joseph and Paul Nderitu, ganged up and made away with millions to form Nyumbani Concepts Limited.
Patrick Muchoki and Joseph Ruhiu formed the now troubled Mahiga Homes while Martin Mwangi formed Belasi Developers.
Andrew Kamau remained alone with Lettas Developers and later formed Banda Homes.
Once the merciless looting of millions meant for the construction of houses had ended, Andrew Kamau was left alone with the abandoned and later formed Banda Homes.
This mass and unruly exodus financially crippled the company and it is still a wonder how it managed to stay on its feet; slowly developing the houses inching closer and closer to handover.
As was expected, the aftermath of this whole fiasco left helpless investors in trouble, and in a response to the clients claim, Lettas Developers shared a handover schedule for the 3 fated projects. With all of them poised to be handed over in October 2019 as most of the works are in the final stages with some only requiring landscaping and tiles.
It is clear that the questionable resignation and amassment of wealth is what that lead to the woes the investors are currently going through.
This clear case of corporate sabotage saw greedy individuals like the Nderitu brothers eascape with perceived profits that were to be attained once the houses were handed over.
As it stands, the company’s projects have over Ksh. 50 million in outstanding payments. Money that has been withheld by clients, further hindering the completion of the houses.
Relevant Kenyan authorities are reported to be already looking into the matter, with the Kenya Revenue Authority (KRA) and the Directorate of Criminal Investigations (DCI) hot on the culprits’ heels.
Those looking for affordable housing have been advised to steer clear of these individuals and instead do proper research, understand the delivery of their proposed realtor.
