An American investor has sued a Nairobi property developer over an alleged unfair termination of a Sh225 million off-plan purchase for seven units in the “Nairobi Icon” project. The Business Daily reports that the investor, identified in court papers as Mr. KYH, told the Environment and Land Court that he had already paid $1.25 million (over 70 percent of the $1.75 million purchase price) by October 2024 when the developer cancelled the deal, citing default.
Mr. KYH claims the project—marketed heavily to diaspora buyers—failed to provide proper communication and that termination notices were sent directly to him instead of through his Kenyan lawyers, despite his overseas residence. He argues the timeline for compliance was unrealistic and that the termination was unlawful and engineered to force a default.
According to the Business Daily report, the suit targets Eighty-Eight Nairobi Limited and individuals linked to the project. Other respondents include Bank of Baroda, the Nairobi Lands Registrar and the Attorney General.
The investor is also challenging a contract clause allowing the developer to retain up to 50 percent of the purchase price as liquidated damages, calling it punitive and unjust. He seeks restitution and court relief, arguing the developer would be unjustly enriched by keeping his payments without delivering the property.
88 Nairobi, a towering building in Nairobi’s Upper Hill, is the tallest residential complex in East Africa. It has been under construction for longer than anticipated.
