Below is a story of intrigues full of greed for wealth and perceived escape from justice. It is a case of housing development companies, one Lettas Developers with a good idea was left in the cold by greedy founders. Kenyan Business Feed has learnt that most of the names mentioned, those who left Lettas, are notorious for swindling clients in the real estate circles in Kenya. Read all of it below.
Information received by Kenyan Business Feed shows that yet another housing developer is on the ropes for failing to deliver to its clients. Lettas Developers is today on the spot for having delayed delivery of houses promised to clients as far back as two years ago.
A letter exclusively leaked that was drafted by one Caroline and Steve Wandeto, a client of the Company, highlights the trials and tribulations that the clients have been through under the intrigues that have plagued the developer leading to recurrent delays in delivery of their houses.
But how did things get so out of hand for the once promising property developer?
Investigations into the Company’s origin brings together a waking realization, the real estate firm was set up in 2016 by individuals, some of whom have been covered in many scandals in the real estate sector; these are, The Notorious Nderitu Brothers Joseph Mwai and Paul Wanjohi Nderitu, Andrew Muhiu Kamau, Patrick Muchoki, Joseph Ruhiu and Martin Mwangi.
When the Company was formed they went on a selling spree and started development of the houses, but as their character of greed and deceit stood out as usual, things started going wrong.
Greed, Money and the Great Escape
Once the money started rolling in, the aforementioned directors started having differences occasioned by greed, wrangles over the shares, many wanted to have a lion’s share of the company’s income and profits. They ganged up into cliques and formed sub-teams united with the aim of fleecing the firm dry.
It is these sub-teams that have gone on to become new real estate companies operating with a devious objective to enrich themselves, an agenda that doesn’t have the client in mind because as soon as one gets their share of the money, they hit the road.
Documents in our possession from the registrar of companies confirms this to be true. The Nderitu Brothers Joseph and Paul Nderitu, ganged up and made away with millions to form Nyumbani Concepts Limited. Andrew Kamau, the best manager, remained alone with Lettas Developers and formed Banda Homes. Patrick Muchoki and Joseph Ruhiu formed the rogue, heavily exposed and troublesome Mahiga Homes while Martin Mwangi formed Belasi Developers.
Lettas, once milked dry, was abandoned to Andrew Kamau and the others made away with millions that should have been used to build the houses promised at a rapid pace.
This we call it the great escape, and it crippled the company financially. It is a wonder how it has stayed on its feet slowly developing the houses inching closer and closer to handover. Thanks to Andrew Kamau’s stewardship.
Fate of Investors
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 it is the questionable resignation and primitive amassment of wealth that lead to the woes the investors are going through. Business-wise, this is a case of corporate sabotage and an escape with profits that were to be made once the houses were handed over.
It is also evident according to the company that the projects have over Kshs.50 million outstanding in payments that have been withheld by clients further hindering the completion of some houses.
The relevant authorities are already looking into the matter with the Kenya Revenue Authority (KRA) and Directorate of Criminal Investigations (DCI) hot on the heels of these individuals.
Kenyan Business Feed warns anyone looking for affordable housing to steer clear-off these individuals, that recently opened real estate companies.Please do your research well and understand the delivery of your proposed realtor.
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