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 transaction in Lanet, Nakuru, ended in a court-approved settlement.
Rosemary Wacuka paid businessman Paul Chinaa Sh11.53 million toward the purchase of two properties that included a four-bedroom house and four bedsitters.
The dispute ended after Chinaa refunded Sh6.53 million and paid an additional Sh250,000 in legal costs.
Chinaa retained Sh5 million under a contractual penalty clause that remains at the centre of the disagreement.
Wacuka alleges that the transaction involved misrepresentation and undisclosed defects.
Chinaa disputes those claims and argues that Wacuka breached the payment terms outlined in the sale agreement.
Agreement signed while abroad
Wacuka signed the agreement on June 23, 2023, while living in the United States.
She did not personally inspect the properties before the purchase.
Instead, she relied on photographs that Chinaa sent through WhatsApp and trusted her sister to conduct due diligence on her behalf.
The agreement also included a promise that Wacuka would receive a vehicle as a gift after completing the purchase.
Court documents show that she paid Sh10 million at the time of signing.
She later paid an additional Sh1.53 million toward Chinaa’s loan repayment.
Under the contract, Wacuka was required to pay another Sh20 million within 60 days.
She was then expected to clear the remaining Sh20 million through monthly instalments of Sh306,361.
Buyer raises access and valuation concerns
Wacuka says she discovered several issues after returning to Kenya.
She alleges that the properties lacked proper access roads despite earlier assurances.
She also claims that the four-bedroom house and bedsitters had visible wall cracks that were not disclosed before the sale.
According to Wacuka, an independent valuation placed the property’s worth at Sh15 million.
That figure was significantly lower than the agreed purchase price of Sh50 million.
On September 5, 2024, she formally terminated the agreement.
She cited alleged misrepresentation and non-disclosure and demanded a refund.
Chinaa responded through his lawyer two weeks later.
He argued that Wacuka failed to pay the Sh20 million instalment due in August 2023.
According to Chinaa, the contract allowed him to cancel the agreement and retain 10 per cent of the purchase price as a penalty.
Court settlement closed the case
Chinaa later offered to refund Sh6.53 million.
The parties subsequently reached a settlement through court proceedings.
A consent agreement signed on January 29, 2025, required Chinaa to pay a total of Sh6.78 million.
The amount included Sh250,000 to cover legal costs.
The Environment and Land Court in Nakuru adopted the agreement.
Court records show that the settlement brought the case to a close on January 31, 2025.
Despite the settlement, Wacuka remains dissatisfied with the outcome.
She argues that she had to hire a lawyer to recover part of her money.
She also continues to allege fraud, non-disclosure and emotional distress.
However, the court settlement resolved the legal dispute through the agreed refund and payment of costs.
