Several business owners from Diani Town, Kwale County, are crying foul after they were allegedly defrauded by an investor who promised to lease commercial spaces at the Banda Mall but failed to fulfil the agreement despite them making payments.
It is alleged that the investor, identified as Perminus Kiage, began marketing the property back in 2022 before the Mall's construction was even completed, to attract tenants.
The business owners who had gathered at the mall, where they had high hopes to start operations after years of delay, expressed their frustrations over the ongoing delays in handing over the premises they had paid for in advance.
“I wanted to invest in Diani, and this is the building I chose. But I ended up losing Ksh1.2 million. This building has taken our money. It’s been two years, and every day we’re given a new excuse,” Zahra Sharif, one of the affected business owners, told Citizen TV.
According to the visibly angry business owners, the situation has persisted since 2022, when the investor failed to complete the construction of the mall despite receiving six months' rent in advance from some tenants.
The tenants revealed that apart from failing completion, the investor also allocated the same stalls to multiple business owners, leaving others stranded.
“I was assigned the first room. Later, I found out several people also claim to have rights over that same room. I know of at least five others. I paid Ksh240,000 for that space. Now everyone says, ‘That’s my door.’ All I want is a refund,” another victim said.
The investor has called on the business owners to calm down, as all issues continue to be resolved. Kiage has called on the affected traders to compile all accompanying documents and come forward for swift resolutions.
“If you know you have been allocated a shop that has been given to someone else, please come forward with the documents so that we can resolve it,” Kiage told the traders.
Msambweni Police Commander Robinson Lagat confirmed receiving complaints over the matter, revealing the police are currently investigating two cases of double allocation.
Meanwhile, the investor has asked those business owners willing to continue with the agreement to bear with them as they work on refunding those who had made prior deposits within the next six months.
Lagat has also called on those affected who have not filed any complaints to move forward to issue official complaints as investigations continue. The traders have also been asked to help police in the investigations.
