Kenyans lose millions as Suraya housing project collapses

A number of Kenyans have found themselves counting losses in millions of shillings after the Suraya projects failed.

This despite the off-plan investment gaining popularity in the country.

Lynx -Royal Estate, a development under the Suraya Properties Limited, is a real estate developer that has now earned itself a bad record.

According to Wairimu Thimba, an investor, the said property was to be completed in 2014, with the payment plan being in instalments.

The final instalment being after the keys were handed over to the investors.

“We have tried reaching out and they can’t answer… I go there and they do not do anything,” said Wairimu.

It was after a series of unanswered emails that forced her together with the other aggrieved investors to visit the Director of Criminal Investigations (DCI) on Thursday to record their statements as well as pay a visit to the Suraya properties offices to at least have the matter sorted. But all that was in vain.

Skyrocketing housing prices and unpredictable rent regimes have witnessed emergence of ‘smart’ investors in Nairobi who buy apartments off-plan at discounted prices, where one gets to investment or buys the property before it is completed.

It is a risk which despite offering flexible mode of payments, and an opportunity for an investor to own property at an affordable rate.

Sometimes the developer might halt the project which according to Beatrice Wachuka, research analyst at the Cytonn Investments, should be a cause for alarm for any investor.

“You have to keep on visiting the sites to know, most times when it stops it is because, there is disagreement between contractors, or lack of capital,” said Wachuka.

“I feel they started these projects and then another without channeling our money where it was meant to build, it was just greed,” lamented Wairimu.