‘Unfulfilled promises’ land developer in court

A real estate company in Nairobi has run into trouble with its customers over alleged breach of contract.

Home owners at the upmarket Fourways Junction residential estate on Kiambu Road have sued Muga Developers Ltd for allegedly refusing to fulfil its undertaking to provide services that formed part of the agreement for the purchase of the houses.

The residents, who filed the suit through the law firm A N Ndambiri, say the promises by the developer formed part of the agreement that convinced them to buy the houses between 2012 and 2013.

“The company informed the buyers that it had incorporated other firms to provide all management and maintenance services within the estate and in individual courts,” they say in their suit.

“The residents were to have a stake in the ownership and management of the companies but that has not been done.”

WERE HOODWINKED

According to the residents, the company promised to construct commercial buildings, a shopping mall, a school, a clubhouse, a hotel, a car park and playgrounds, among others.

After paying the full amount for the houses, the developer refused to provide any of the things promised and did not incorporate the management and service companies.

They add that they were hoodwinked into buying the houses by the firm, which continues to charge them for non-existent services.

“The representations by the developer were false, untrue and misleading. They made them to induce us to purchase the units with a further requirement to pay between Sh4,000 and Sh5,000 as service charge,” say the residents in the suit papers.

The developer has been demanding payments for water consumed between January 2012 and December 2013 without any justification, they say, and lack of the services had made the houses be valued at less than what they paid.

They want a court order compelling the company to put up the promised services and amenities, and that the residents be involved in their management.

They also want the developer permanently stopped from charging them any money for services and to account for what they have already paid.