Building a house at home is a dream for many Kenyans abroad, and stories of money lost are painfully common. Often it is not a stranger but a relative, a friend or a “trusted” contractor. A few safeguards make a large difference.
How people lose money
- Money sent for materials that were never bought, or bought cheaply while the full price is claimed.
- Photos of someone else’s building sent as proof of progress.
- A plot that was never really yours, or sold to several people.
- Work done badly, so it has to be redone.
- The project simply stalls, with the money gone.
The safeguards
Own the land properly first
Buy through your own advocate, do an official search, and make sure the title is in your name. See Buying land around Nairobi and Land search on Ardhisasa.
Use professionals, not just family
Hire an architect, a quantity surveyor and an NCA-registered contractor, with a written contract. Family can help and keep an eye on things, but should not be the only check. See Building a house in Kenya.
Pay in stages, against verified progress
- Agree stages (foundations, walls, roof, finishes) and a price for each.
- Before each payment, have progress certified by someone independent - your quantity surveyor or engineer - not the person being paid.
- Pay into a business bank account in the contractor’s name, never to a personal account or M-Pesa number.
Check progress yourself
- Ask for video calls on site, walking around the building, rather than photos.
- Ask for dated, geotagged photos.
- Visit at key stages if you can, or send someone independent.
Keep records
Keep the contract, drawings, approvals, invoices, receipts and bank statements together. They help if something goes wrong, and when you sell.
Powers of attorney
If someone needs to sign for you, give a specific power of attorney for that purpose and period, and register it. Avoid a general power of attorney that lets someone sell or borrow against your land. See Kenyans abroad.
Warning signs
- Pressure to send money quickly, or “prices have gone up” after you have paid.
- Excuses for not showing the site on video.
- Requests to pay a new or personal account.
- No receipts for materials.
If it goes wrong
Stop further payments, gather your records, and get an advocate in Kenya. Fraud can be reported to the police and the Directorate of Criminal Investigations.