This is very common with the certificate thing. You go for a site visit and they show you land that is yet to be subdivided, or even it's subdivided you don't know which parcel is yours. So in essence huajona shamba yako since you don't know your parcel.

I thought the plot numbers are issued after subdivision? What number was indicated on the certificate considering that subdivision had not been done?

The problem with your line of thinking is that you are assuming they are actually using all the money for the purpose intended for, however, in cases like these, the owners of the company often collect the money and use it for their own lavish living, in fact often times, less than 50% of the collected money goes into the intended use. So even if Banda built houses, don't be surprise the land under which the house is built is a collateral of a loan that is already in default or more than 1 person have the claim on the said units!

@Hardwood when did it hit you that they are a con?

I withdraw my statement. I was "misquoted". I think I got carried away by @bigchick's story (plus viceroy). Let's us give Banda the benefit of doubt. Banda will deliver.

Probably people are unaware of such fraudulent activity and are still investing in houses. Like with any other investments, I think that also with purchasing of a house, a precaution in necessary. People need to check such investors well legality of business prior to investment

The challenge Hardwood comes where the 'Robbing Peter to pay Paul' model hits a dead end like in case they run out of projects to sell (read Peters to rob). There clearly seems to be a funding gap and it is not entirely because of them taking installments. It appears from the allegations that there is money that disappeared from the system and this created the funding gap hence the delays in the delivery of earlier projects from the alleged associated companies. In that case they don't want to sell more units, they neeeed to keep selling more units.

So
1) The success of their projects if the allegations are true would be heavily dependent on continuing to sell more and more units. Once this stops, like possibly as a result of the circulating rumours, there will be a problem. The last to purchase will have funds be committed to other projects with no one to fund their units, almost like a pyramid scheme.

2) The same issues that caused the monies alleged to have leaked out of the system in earlier projects may persist and the funding gap may be growing. Same directors, key shareholder etc

They need support but they need to earn the support.

I borrow 5mil to support guys who even have a hint of weak corporate governance structures?! Hehehe Nairobi ni shamba la mawe!

Could they already be morphing into another entity known as Mahiga homes? I note this company is also developing properties in the same vicinity, using the same model.

Not saying they're one and the same thing; just asking.