Real estate company Mahiga Homes that has its operations in Kiambu and its neighbouring counties seems to have hit a dead end and is considereing folding citing cash crunch as investors stare at losing billions in undelivered off plan projects.
It has emerged that the company has closed its satellite companies and informed its marketing team of imminent closure amid latest downsizing at the company that is co-owned by Patrick Waweru Muchoki and Joseph Thuo Ruhio.
Misappropriation and siphoning clients money for luxury living has been cited as one of the issue enabling Mahiga Homes downfall
Apparently, all existing clients have ganged up and decided not to pay any money to the company as they fear losing both their money and unfinished housing projects especially in Kangundo Road and Ruiru.
Many customers have resorted to finishing their own units, while most remain shells of a pale shadow of what was once envisioned as luxury living through a fictitious market speak graphics meant to hoodwink buyers into a fine living that never was.
The directors of the company are reported to have siphoned millions of shillings to their personal accounts which have been used to finance their lavish lifestyle leaving investors angry and vulnerable.
Most hit by the scam are the diaspora clients especially the USA who have suffered most as Mahiga Homes frequented the USA to market off-plan and signed deals worth millions but have nothing to show back home.
Their main diaspora agent for Mahiga Homes identified as Jeremy Damaris has since distanced himself from the company claiming that they used him to dupe his clients and friends and failed to deliver. He has since apologised openly and jumped the bandwagon and is now marketing for willstone homes.
The 2 directors, Patrick Waweru Muchoki and Joseph Ruhiu Thuo are currently reported to be in serious distress after their cash flows dried up and are said to spend most of their days holed up in air bnbs along the eastern bypass since they cannot report to their offices due to the pressure by multiple clients some of whom are seeking refunds or to be given a way forward.
They are also said to be unable to pay numerous loans taken from KCB bank to finance the construction of their homes in Membley and Thika respectively.
The homes are said to be near auction due to non performance of these loans.
Some clients are said to have targeted these homes as they seek to recover their money from the directors, with some reported to have threatened to storm the directors family residences as they are nowhere to be found.
Customers are now seeking each other to team up so that they can take group action against the company and its directors.
Documents in possession of this publication show that a few months ago one of the directors at Mahiga Homes transferred Sh 28 millions from company accounts to his personal account and immediately closed it.
If you are an aggrieved client of Mahiga homes, kindly email your name, project and unit number to the following email. And you will be contacted.
mahigascam@gmail.com
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