Embakasi East MP Babu Owino has raised alarm over the risk of approximately 110 Kenyans losing their investments in a private housing development in Lavington, Nairobi, after the project reportedly stalled and was subsequently auctioned by a bank.
Owino raised the matter in Parliament on Wednesday, November 11, 2026, seeking answers from the Chairperson of the Departmental Committee on Housing, Urban Planning and Public Works over the fate of investors in the proposed Terrace Apartments development along Hatheru Road.
He cited reports that the investors bought into the off-plan housing 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 were aware 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.
He argued that the situation raised concerns 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.
He also wants the committee to explain the circumstances that led to the development stalling and account for the money paid by the 110 investors.
In particular, he requested a breakdown of the amounts collected, how the funds were utilised and how much had been refunded to buyers.
Owino further asked the committee to clarify how the project property was charged to the bank and subsequently auctioned.
He wants it established whether the purchasers were informed that the property had been used as security for a loan or notified of the impending auction.
The MP also sought details of investigations into the alleged misappropriation of buyers’ funds and measures taken to help affected purchasers recover their investments.
Owino also asked the committee to outline measures being taken to strengthen the regulation of off-plan housing developments and protect purchasers from financial losses.
In a statement accompanying his parliamentary intervention, the MP said Kenyans were losing their hard-earned investments in private real estate and housing projects.
He argued that stalled, abandoned and incomplete developments, coupled with alleged misappropriation of purchasers’ funds and property auctions, were undermining public confidence in the real estate sector.
“Kenyans who invest their hard-earned money in housing projects deserve protection,” he said.
The parliamentary request places the Terrace Apartments case before the Housing Committee, with the MP seeking accountability over the investors’ money and stronger safeguards for Kenyans purchasing homes before construction is completed.
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