How to Verify a Kenya Property Developer Is Legitimate Before Signing Anything

Buying from a private individual and buying from a developer are different transactions with different verification requirements.

When you buy from a private seller, you are checking that the seller owns what they claim to own and that the title is clean. The transaction is essentially between you and one other person.

When you buy from a developer, you are also checking that the company is real, is financially capable of completing the project, holds the land it claims to hold, and has the regulatory approvals it needs. The transaction is between you and an organisation with a structure, history, and obligations you can independently verify.

Here is how.

---

Step 1: Confirm the Company Is Registered

Every legitimate Kenya property developer should be registered as a company with the Business Registration Service (BRS).

Check at bizsearch.co.ke or through the eCitizen portal.

Enter the company name as it appears in the marketing materials.

Confirm the company number, the date of registration, and the registered directors.

Note how old the company is. A company registered in the same month as the marketing launch has no track record. This is not automatic fraud, but it is a risk factor.

---

Step 2: Confirm the Directors Match

The marketing materials and the sales team will typically mention key individuals. Confirm that these individuals are listed as current directors in the BRS records.

Discrepancies between who the developer says is in charge and who appears in the official records are a flag. Developers sometimes operate under a company name with actual control in different hands.

---

Step 3: Verify the Development Land Title

Ask for the LR or CR number of the land on which the development is being built. Run an official search.

Confirm that:

The title is in the developer company's name.

The title is free of undisclosed charges.

The parcel is in the county claimed in the marketing.

The parcel area and description match what is being marketed.

This is the step that would have caught the Willstone Homes fraud in most cases. The LR numbers used in Willstone's marketing did not match Nairobi registry records. A buyer who checked the number would have found the discrepancy before paying.

---

Step 4: Check NCA Registration

The National Construction Authority (NCA) registers contractors and maintains a register of construction projects.

Visit nca.go.ke and search for the developer's company or the specific project.

Confirm that the company holds a valid NCA registration.

For large projects, confirm that the specific development has a project licence.

NCA registration does not guarantee project completion, but its absence means the development is proceeding outside Kenya's construction regulatory framework.

---

Step 5: Look Up Court Judgments

A developer who has unpaid court judgments against the company may be in financial difficulty. Search for any court cases involving the company name at the Kenya court registry.

Cases involving buyer complaints, contractor disputes, or creditor claims that have been taken to court are visible in court records and are a direct indicator of the developer's financial and operational health.

---

Step 6: Request and Verify Prior Completed Projects

Ask the developer: what developments have you completed?

Get the project name and location of one or two completed projects.

Visit the completed project. Speak with owners who bought from the same developer. Ask whether:

The units were delivered on time.

The quality matched the marketing.

The title process on completion was smooth.

There were any issues after purchase.

A developer who cannot point you to completed, occupied projects is a developer without a track record.

---

Step 7: Understand the Payment Structure

Read the sale agreement carefully. Specifically:

Where does your deposit go? Is it held in escrow or does it go into the developer's operating account?

What triggers the return of your deposit if the project is not completed?

What are the developer's penalties for late delivery?

What is your recourse if the developer becomes insolvent?

A developer who insists on a non-refundable deposit with no delivery guarantee is asking you to take on all the risk of a project you cannot control.

---

Step 8: Have a Conveyancing Advocate Review the Agreement

Before signing anything, have a Kenya conveyancing advocate review the sale agreement. Do not rely on the developer's in-house legal team for this review. They represent the developer's interests, not yours.

The advocate should review:

The title position for the development land.

The contractual protections in the agreement.

The developer's corporate standing and financial health as far as is visible from public records.

Any clauses that limit your rights in unexpected ways.

---

A Litmus verification on the development land (confirming the title is clean, in the developer's name, and in the correct county) costs KSh 21,500. It is the single most important independent check for any off-plan purchase.

For high-value off-plan investments, the full field verification (KSh 25,500) also confirms the site exists, is in the claimed location, and has the development activity described.

---

This article is for general information only. It does not constitute legal advice. Consult a qualified Kenya advocate before signing any off-plan sale agreement.