Kenyan MP asks Parliament to explain 110 investors' losses in stalled Lavington project
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Embakasi East MP Babu Owino has asked the National Assembly's housing committee to account for the fate of 110 buyers who put money into the off-plan Terrace Apartments development on Hatheru Road in Lavington.
Embakasi East MP Babu Owino has asked Parliament to establish the status of a stalled off-plan housing project in Lavington, Nairobi, and to account for the money paid by 110 investors who bought into it.
Raising the matter in the National Assembly on Wednesday, November 11, 2026, Owino sought answers from the Chairperson of the Departmental Committee on Housing, Urban Planning and Public Works over the proposed Terrace Apartments development along Hatheru Road.
He cited reports that the investors bought into the project between 2016 and 2018 but were left exposed after the developer failed to complete the development. According to the MP, the property was subsequently auctioned by a bank following a loan default linked to the project, raising questions about how purchasers' money was handled and whether they knew of the financial arrangements.
"It is further reported that only five of the 110 investors were refunded by the management company, leaving the remaining purchasers at risk of losing their investments," Owino told Parliament.
The MP asked the committee to identify the developer, provide details of the approvals granted for the project, explain what led to the development stalling and give a breakdown of the amounts collected, how the funds were used and how much has been refunded. He also wants the committee to clarify how the property was charged to the bank and subsequently auctioned, and whether buyers were told the land had been used as security for a loan or notified of the impending auction.
Owino argued that the case raises questions about the protection of buyers' rights, including the doctrine of legitimate expectation and Article 27 of the Constitution, which provides for equality and freedom from discrimination. In a statement accompanying his intervention, he said Kenyans were losing their savings in private real estate projects, and that stalled developments, alleged misappropriation of buyers' funds and property auctions were undermining confidence in the sector. The request also asks the committee to outline measures being taken to strengthen the regulation of off-plan housing.