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How Mr Kiragu of Lesedi Executed Ksh1 Billion Real Estate Fraud in 2 Years

by litfeed
2 mins read

Two years, Lesedi Developers Limited blew the trumpet as the real estate company of choice. It was too loud to ignore.

Skipping forward to January 2023, hundreds of investors, who were lured to buy plots and houses in off-plan arrangements, are a worried lot.

Lesedi Managing Director, Geoffery Kiragu is a man under siege for allegedly orchestrating a mega real estate fraud that has left the sector reeling. It is thought his company has collected huge sums of money in the vicinity of Ksh1 billion.

Last week, tens of investors stormed the company’s office in Thika to demand their title deeds for the various properties they had paid for in different areas including Thika, Juja, Kiambu, and Nakuru.

Carrying placards bearing mean words against the management of the firm, the investors were left to make noise as the directors refused to give them an audience.

The company rushed to issue a statement on its Facebook page, accusing the media of amplifying the voices of detractors.

“We are not immune to everyday business challenges. We encountered solvable problems with the project (s) in question, as is typical of many players in the real estate sector… we are in the process of putting things together,” Kiragu said.

But many considered this as PR because when some investors started asking questions in the comments section, it was locked and some comments were deleted.

“When are you delivering titles for Muthaara plains? We have waited for long. Please update us coz patience is at maximum,” Douglas, a buyer asked. Replying to Douglas’ comment, Liam Kimani said his question was removed when he posed the same question.

Title Deeds

Tens of investors have been coming out and narrating their agony in trying to get titles. They are now used to empty promises.

Some have told various news sources that they borrowed loans to buy and now creditors are breathing down their necks even as Lesedi continues to play hide and seek.

One of the reasons why the company is unable to dish titles is that a good number of plots have double allocation.

However, Kiragu could not have created this façade alone.

The company enlisted an army of famous Kikuyu influencers like Mugithi maestro Samidoh and top gospel musicians Muigai Njoroge and Karangu Muraya to promote its projects. Leading vernacular radio and TV stations were also cabled along to enthrall potential buyers. The charm was irresistible.

The aggressive marketing lent this company credibility and respectability. All those celebrities are now silent after the expose.

But maybe this was just child’s play.

Reports suggest that Kiragu is in the process of dissolving Lesedi to continue this trend in another company now operating as Tunza Realtors Ltd.

The Nation reported that Kiragu has admitted that he is one of the directors at Tunza but distanced it from Lesedi.

Rumours swirling around is that Tunza will be selling the same plots that were sold to Lesedi investors.

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