Sh25 million Karen land deal lands two company directors in court

Two directors of a clearing and forwarding company have been charged in court over an alleged Sh25 million land deal gone wrong after a buyer failed to secure ownership of a property in Karen, Nairobi, despite making a substantial deposit towards the Sh45 million purchase.

Obadiah Kamau Kihara and Hannah Wanjiku Mbatia, directors of Waki Clearing & Forwarding Agents Ltd, were arrested on November 6, 2026, and presented before the Milimani Law Courts on Monday, November 9, following investigations by the Directorate of Criminal Investigations (DCI).

The two are accused of obtaining money by false pretences in connection with the sale of a 0.2042-hectare piece of land situated off Comboni Crescent in Karen.

Court proceedings stem from a sale agreement entered into on March 30, 2026, when a buyer agreed to purchase the property for Sh45 million. Under the agreement, the buyer paid Sh25 million as a deposit, with the outstanding balance expected to be cleared as the ownership transfer process commenced.

However, the transaction failed to reach completion, with the buyer unable to secure the transfer of the property. The unresolved deal eventually prompted the buyer to report the matter to the police, leading to investigations by detectives.

According to the DCI, officers attached to its Land Fraud Investigation Unit established that the two directors had received the Sh25 million paid towards the purchase.

Further investigations uncovered disputes involving the boundaries of the property, which led the vendor to seek the amalgamation and fresh subdivision of neighbouring parcels.

The proposed changes complicated the transaction because the land remained registered in the company's name, leaving the buyer without a clear assurance of ownership despite having made the payment based on the existing title and the measurements provided.

Detectives established that the proposed adjustments to the property changed the basis of the original agreement, leaving the buyer's acquisition unresolved after the Sh25 million deposit had already been paid.

Upon concluding their investigations, the DCI forwarded the case file to the Office of the Director of Public Prosecutions (ODPP) for review and directions on the appropriate charges.

The ODPP subsequently approved charges of obtaining money by false pretences under Section 313 of the Penal Code, paving the way for the prosecution of the two company directors.

Kihara and Mbatia denied the charges when they appeared before the court on Monday.

They were each released on a bond of Sh100,000 or an alternative cash bail of Sh50,000 as they await the next court proceedings.

The matter is scheduled for mention on November 24, 2026.