Hundreds of Kenyan homebuyers are staring at huge losses after real estate developer Banda Homes Ltd officially entered liquidation.
This marks a dramatic collapse of a firm that once promised affordable housing but left investors with undelivered homes and lost savings in the millions of shillings.
The company’s downfall was confirmed in a public notice published in the Kenya Gazette, which announced that the Official Receiver had been appointed as the liquidator following a special resolution.
According to the notice, the Official Receiver was named the Bankruptcy Trustee of Banda Homes’ estate “with effect from the 13th March 2025.” A creditors’ meeting has been scheduled for September 18, 2025, at 11 o’clock at the Bankruptcy Trustee’s Office in Nairobi.
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“The agenda for the meeting shall be to update the creditors on the status of the Bankruptcy process; and discuss the way forward in the liquidation,” the notice read.
Banda Homes was a prominent player in Kenya’s off-plan property market, where buyers purchase homes before construction is complete, often at a discount, based on architectural plans and promises of future delivery.
The off-plan model, while popular in Kenya, carries significant risk if developers fail to deliver. The company aggressively marketed projects like Pinewood Estate and Rosewood Estate along Thika Road and Kenyatta Road on the outskirts of Nairobi.
But construction delays began as early as 2019, with the company later blaming the Covid-19 pandemic for stalled projects.
Investors, who narrated their ordeal to The Standard at the time, however, reported a pattern of broken promises, poor communication, and a lack of transparency.
Many had paid deposits of up to 50 per cent of the property value, with some investing their life savings or taking out loans.
“This is a catastrophic failure of corporate governance and consumer protection,” said Nairobi-based analyst Ian Njoroge.
“The off-plan model relies entirely on trust and the developer’s financial stability. When that collapses, ordinary people bear the entire loss.” The liquidation process, overseen by the Official Receiver under Kenya’s Insolvency Act, will see the company’s remaining assets sold to pay off debts.
However, with many projects incomplete and the value of undeveloped land uncertain, investors are likely to recoup only part of their initial investments, analysts cautioned.
Analysts said the case highlights the perils of Kenya’s largely unregulated off-plan property sector, where developers can pre-sell units with minimal oversight.
Industry experts are now calling for stricter regulations, including mandatory escrow accounts to protect buyer deposits and ensure funds are only released for construction milestones. Mandatory escrow accounts would protect buyers by having their payments held by a neutral third party, with funds released to the developer only in stages as verified construction milestones are met.
A Banda Homes investor who spoke to Real Estate said the gazette notice is a formal epitaph for a dream that turned into a financial nightmare.
“It is very painful that now I not only have to service my loan, which is very expensive, but also pay rent, yet I met my part of the deal. I paid in excess of Sh3 million for the house, hoping that when I finish paying, I will quit paying rent and concentrate on servicing the bank loan,” said the Banda Homes investor who had paid for a three-bedroom house.
Kenya faces a significant housing crisis, with a national deficit of over two million units, making homeownership a central goal for many individuals as developers seek to serve this huge market.
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Hundreds of Kenyan homebuyers are staring at huge losses after real estate developer Banda Homes Ltd officially entered liquidation.
This marks a dramatic collapse of a firm that once promised affordable housing but left investors with undelivered homes and lost savings in the millions of shillings.
The company’s downfall was confirmed in a public notice published in the Kenya Gazette, which announced that the Official Receiver had been appointed as the liquidator following a special resolution.
According to the notice, the Official Receiver was named the Bankruptcy Trustee of Banda Homes’ estate “with effect from the 13th March 2025.” A creditors’ meeting has been scheduled for September 18, 2025, at 11 o’clock at the Bankruptcy Trustee’s Office in Nairobi.
Follow The Standard
channel
on WhatsApp
“The agenda for the meeting shall be to update the creditors on the status of the Bankruptcy process; and discuss the way forward in the liquidation,” the notice read.
Banda Homes was a prominent player in Kenya’s off-plan property market, where buyers purchase homes before construction is complete, often at a discount, based on architectural plans and promises of future delivery.
The off-plan model, while popular in Kenya, carries significant risk if developers fail to deliver. The company aggressively marketed projects like Pinewood Estate and Rosewood Estate along Thika Road and Kenyatta Road on the outskirts of Nairobi.
But construction delays began as early as 2019, with the company later blaming the Covid-19 pandemic for stalled projects.
Investors, who narrated their ordeal to
The Standard
at the time, however, reported a pattern of broken promises, poor communication, and a lack of transparency.
Many had paid deposits of up to 50 per cent of the property value, with some investing their life savings or taking out loans.
“This is a catastrophic failure of corporate governance and consumer protection,” said Nairobi-based analyst Ian Njoroge.
“The off-plan model relies entirely on trust and the developer’s financial stability. When that collapses, ordinary people bear the entire loss.” The liquidation process, overseen by the Official Receiver under Kenya’s Insolvency Act, will see the company’s remaining assets sold to pay off debts.
However, with many projects incomplete and the value of undeveloped land uncertain, investors are likely to recoup only part of their initial investments, analysts cautioned.
Analysts said the case highlights the perils of Kenya’s largely unregulated off-plan property sector, where developers can pre-sell units with minimal oversight.
Industry experts are now calling for stricter regulations, including mandatory escrow accounts to protect buyer deposits and ensure funds are only released for construction milestones. Mandatory escrow accounts would protect buyers by having their payments held by a neutral third party, with funds released to the developer only in stages as verified construction milestones are met.
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A Banda Homes investor who spoke to Real Estate said the gazette notice is a formal epitaph for a dream that turned into a financial nightmare.
“It is very painful that now I not only have to service my loan, which is very expensive, but also pay rent, yet I met my part of the deal. I paid in excess of Sh3 million for the house, hoping that when I finish paying, I will quit paying rent and concentrate on servicing the bank loan,” said the Banda Homes investor who had paid for a three-bedroom house.
Kenya faces a significant housing crisis, with a national deficit of over two million units, making homeownership a central goal for many individuals as developers seek to serve this huge market.
Follow The Standard
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By Brian Ngugi