A director of a Nairobi-based real estate company has found himself in legal trouble after being accused of defrauding a client out of KSh6.4 million in a house construction scam linked to a housing project in Syokimau.
The individual at the center of the controversy, Abdiwahab Adan Maalim, who serves as the Director of Vaad Limited, appeared before the Chief Magistrate’s Court at the Milimani Law Courts on Tuesday, April 22. He is accused of conning a Kenyan out of a substantial sum under the guise of building a house in the Oakside Phase 2 project located in the Syokimau area of Mavoko Municipality.
According to details gathered during the investigation, the complainant had reported the matter to the Directorate of Criminal Investigations (DCI) on December 30, 2024. The report indicated that Maalim had entered into a contractual agreement promising to construct a house for the complainant as part of the housing project. The contract, dated September 22, 2022, set the total cost of the project at KSh13 million. The payment structure included an initial deposit of KSh3 million followed by periodic payments, with an agreement that the house would be completed within 24 months.
However, trouble began when, seven months after the agreement was signed and payments commenced, the complainant had already paid KSh6.4 million, yet there was no sign of any construction work at the project site. Investigators from the Economic and Commercial Crimes Unit visited the site and confirmed that not only had construction failed to begin, but over a year had passed since the project’s original completion date.
Despite the contractual obligations and the significant financial commitment made by the complainant, detectives found no evidence of foundational work or any form of construction having been initiated by Vaad Limited.
Maalim was arraigned and charged with fraud but pleaded not guilty to the allegations. The court granted him a bond of KSh1 million and a cash bail of KSh100,000 as he awaits the next hearing. The matter is set to be mentioned again on May 12, 2025.
This case has shed light on growing concerns about fraudulent practices within the real estate sector, particularly in Nairobi’s fast-growing satellite towns. The DCI has since revealed that this is not the only complaint filed against Maalim and his company. Authorities have confirmed that multiple other reports are under investigation, raising concerns about a possible pattern of fraud.
The DCI has called upon other potential victims who may have dealt with Vaad Limited or Maalim under similar circumstances to report to their headquarters and provide any relevant information. This call for public cooperation aims to bolster ongoing investigations and possibly build a stronger case against the suspect.
This saga serves as a cautionary tale for property buyers and investors. Prospective homeowners are being urged to perform thorough background checks and seek legal counsel before committing to real estate deals, especially when large sums of money are involved. As the court proceedings continue, many will be watching closely to see whether justice will be served and whether broader regulatory reforms in the sector will follow.
