The High Court has directed Certified Homes Ltd., along with its directors, Lilian Oketch and Dennis Oketch, to respond to a lawsuit filed by three U.S.-based clients over a financial dispute amounting to Sh 15.5 million.
Justice Lucy Mbugwa granted the company 14 days to submit their response, warning that failure to do so would result in a judgment in favor of the plaintiffs.
The lawsuit, brought forth by Elizabeth Wangari Green, Caroline Ongito, and Eddah Wanjiku Kimani, claims that Certified Homes Ltd. breached a contract to construct an ultra-gated residential development known as KWITU Gardens Phase 2.
This project was designed specifically for Kenyan women living in the U.S. who were interested in investing in property back home.
According to the plaintiffs, the company misled them from the outset, failing to provide clarity on land ownership and ignoring their concerns throughout the process.
The written contract allegedly referenced parcels of land not lawfully owned by the directors, raising significant red flags.
In their court filings, the plaintiffs accused Certified Homes of using substandard building materials sourced from unknown manufacturers, contrasting sharply with the quality depicted in the company’s promotional materials.
They highlighted discrepancies in the finishes used in the construction, including tiles and cabinets, which did not match what had been advertised.
Additionally, the plaintiffs claimed that the directors did not provide the necessary architectural plans or approvals from the county government, despite prior assurances that the property would have essential utilities like water and electricity.
The directors are also accused of making misleading promises regarding the potential resale value of the house units, claiming they could sell for between Ksh 9 million and Ksh 12 million without presenting any evidence to support such estimates.
Justice Mbugwa emphasized the urgency of the matter, directing the defendants to file their response within the stipulated time frame. Should they fail to comply, the court will enter judgment in favor of the plaintiffs, potentially affecting the future operations of Certified Homes Ltd.
