The disputed Sh50 million deal involved two properties in Lanet, Nakuru.
Rosemary Wacuka alleges misrepresentation in the Lanet sale, while the seller says he retained Sh5 million under a contractual penalty after she defaulted.
A US-based woman lost Sh5 million after a disputed Sh50 million property purchase in Lanet, Nakuru, ended with a refund settlement adopted by the Environment and Land Court.
Rosemary Wacuka paid Paul Chinaa Sh11.53 million towards two properties containing a four-bedroom house and four bedsitters. She later received a Sh6.53 million refund, together with Sh250,000 in case costs, while Chinaa retained Sh5 million under a disputed contractual penalty.
Wacuka alleges that the sale involved misrepresentation and undisclosed defects. Chinaa, however, maintained that she breached the payment terms and that the agreement allowed him to deduct 10 per cent of the purchase price upon rescission.
Agreement Signed While Abroad
The parties entered into the sale agreement on June 23, 2023, while Wacuka was in the United States. She had not personally viewed the properties and relied on photographs Chinaa sent through WhatsApp, while trusting her sister to carry out due diligence.
Under the arrangement, Wacuka was also promised a vehicle as a gift once she completed payment of the purchase price.
Her documents show that she paid Sh10 million at the signing stage and another Sh1.53 million towards Chinaa’s loan repayment. The agreement required a further Sh20 million within 60 days of June 23, 2023, with the remaining Sh20 million payable in monthly instalments of Sh306,361 until cleared.
Buyer Raises Access and Valuation Concerns
Wacuka says that after returning to Kenya, she discovered that the properties lacked proper access roads, contrary to the information she had received before signing the agreement.
She also alleges that the four-bedroom house and bedsitters had visible wall cracks that had not been disclosed. A valuation she commissioned placed the land and developments at Sh15 million, she says, far below the agreed Sh50 million price.
On September 5, 2024, Wacuka wrote to terminate the agreement, citing alleged misrepresentation and non-disclosure. She demanded a refund and issued a 21-day notice under the contract.
Chinaa responded through his lawyer two weeks later, saying he had rescinded the agreement because Wacuka failed to pay the Sh20 million due by August 2023. He said the contract provided for a refund less a penalty equivalent to 10 per cent of the purchase price.
Court Settlement Closed the Case
Chinaa offered to refund Sh6.53 million, which he subsequently paid following the court proceedings. A consent signed on January 29, 2025, and adopted by the Environment and Land Court in Nakuru provided for a total payment of Sh6.78 million, including Sh250,000 in case costs.
The settlement stipulated that the matter would be closed upon payment. Court records show that the file was closed on January 31, 2025.
Wacuka remains dissatisfied, saying she had to hire a lawyer to recover part of her payment. She continues to allege fraud and seeks compensation for lost time, emotional distress and non-disclosure. Those allegations are distinct from the consent settlement, which resolved the case through the agreed payment.
