Church embroiled in new Sh260 million housing project scandal in Nairobi

The land scandal involving one of the country’s popular churches has taken a new twist after members accused a former bishop and two church elders of defrauding them of close to Sh300 million.

At least 130 members of Lanyavu Gardens Ltd, the land-buying arm of Nairobi Pentecostal Church’s savings society — Lanyavu Sacco — accuse retired Bishop Boniface Adoyo, Mr Haron Nyakundi and Dr Joyce Gikunda of hiding behind the church to steal from them.

They claim that the trio, acting as directors of Lanyavu Gardens Ltd, collected Sh260 million from members who had bought land in Bogani Gardens in Karen to build infrastructure but cannot account for the money six years later.

“We paid Sh4 million for land and Sh2 million for infrastructure in 2008. But nothing has been developed ever since,” said a member who cannot be named for fear of reprisals.

They said the directors had ignored calls to refund the money and want them investigated for fraud and abuse of office.

The members claim that they have been forced to conduct harambees to raise money for electricity and sewerage services, while others said they had been denied the right to enjoy their investment because the land does not have basic amenities for a residential property.

The plot owners say they invested in the project because the leadership of the Christ is the Answer Ministries (Citam) assured them their money was safe, only for Bishop Adoyo and the two elders — Nyakundi and Gikunda — to turn the money to personal use.

“We have no problem with the church as we are still members, but we are disappointed that the directors used the church to defraud us. Five years after we paid the money, we have not benefitted from any infrastructure,” said the members in a letter to the church seen by the Sunday Nation.
But in a rejoinder, Dr Adoyo and Mr Nyakundi denied that they had defrauded the members their infrastructure money, saying the process of providing the facilities was on course.

“We have built a perimeter wall around the 72-acre plot and each house has an access road. We cannot, however, tarmac the roads because some people are still building their houses which the road boulders will interfere with if we start tarmacking it,” said Dr Adoyo.

EVALUATION

On claims that the company directors had failed to account for the infrastructure money, Dr Adoyo said they had not done the entire evaluation and the cost incurred but once it is done, they will share with the members.

Mr Nyakundi said water pipes were on site and the construction will start soon, and that the only thing pending is provision of power which they are negotiating with Kenya Power.

“All the infrastructure that was to be put in place under phase one of the project is almost complete. The people complaining are those who have not completed their payments and only want to embarrass us,” said Mr Nyakundi.

In any event, Mr Nyakundi said, the Sh2 million paid by each of the 130 land buyers was provisional, and that the entire cost of infrastructure would be much higher.

Dr Gikunda did not pick our calls, and did not respond to our text message for her side of the story.
Bishop Adoyo is one of the founder members of Christ is the Answer Ministries (Citam). Mr Nyakundi, a quantity surveyor, is a director of Konza City Development Authority, head of the quantity surveyors’ lobby and chairman of the Joint Building Council that brings together architects, surveyors and engineers.

He is listed as the project manager of Lanyavu Gardens Ltd. Dr Gikunda, a pharmacist, is the founder and managing director of Lyntons Ltd, a high-end cosmetic pharmacy, and a real estate developer.

According to Mr Nyakundi, the money was to cater for internal roads, storm water drainage, sewer treatment works, water supply, security wall, jogging track and power supply.

But the members claimed the project manager had not supplied any of the amenities, forcing them to raise additional money to put up the infrastructure.

“The people who paid for the infrastructure are the ones hurt most; they had to organise a fundraiser to bring power to their residential buildings. None of the facilities we collected money for has been put up; it is like our money went to benefit others,” said one member.

The new dispute came up as details emerged confirming that Lanyavu Gardens Ltd was actually a project of Citam initiated by Bishop Adoyo to help church members acquire land to build their homes.

This negates earlier claims by current Citam presiding bishop, the Rev David Oginde, that the company is independent and has no connection with the Valley Road-based church.

Testifying as a director of Lanyavu Gardens Ltd in another land case in Mavoko, Machakos, in 2011, Dr Adoyo swore an affidavit stating that the company was the business arm of Lanyavu Sacco, the savings society of Nairobi Pentecostal Church.

CITAM

The church company had raised Sh354 million from members and bought 572 acres of land in Mavoko, half of which they wanted to use and the other half for members to build residential homes.

However, the land was invaded by Wilson Munguti, Jackson Mutua and Syokimau Bright Homes Ltd, prompting the court case. While ruling in favour of the church company, Justice Asike Makhandia noted that Dr Adoyo had confirmed in his witness statements that the company belonged to Citam.

“Bishop Adoyo is director of Lanyavu Gardens Ltd. He testified that the company is a business arm of Lanyavu Sacco, which is a sacco of Nairobi Pentecostal Church... they purchased the land from Eva Three Construction and the suit property was registered in their company name,” ruled the judge.

This was corroborated by a letter in February 2011 by Bishop Oginde to one of the members who had protested at delays to be allocated a plot in Karen despite having paid for it.

In the letter seen by the Sunday Nation, Bishop Oginde distanced Lanyavu Gardens Ltd from claims that it was a pyramid scheme out to defraud members.

Bishop Oginde said that although the current church leadership was not directly involved in the company’s management, the idea was mooted by Citam leadership to empower church members.

“The purchasers were also required to join Lanyavu Sacco since all the plots were marketed through the sacco at terms that were mutually agreed between the sacco and Lanyavu Gardens Ltd,” said Bishop Oginde in the letter.

Lanyavu Gardens Ltd has been dogged by one scandal after another over the past five years. Two weeks ago, we reported exclusively how some members have sued Bishop Adoyo, Mr Nyakundi and Dr Gikunda for not allocating them plots in the Karen project despite receiving money from them.

According to court documents, the bishop, Mr Nyakundi and Dr Gikunda are accused of grabbing land from bona fide members and allocating it to their children, spouses and relatives.

The dispute dates back to 2007 when Bishop Adoyo, then the presiding bishop of Citam, came up with an idea to help church members acquire wealth by pooling resources.

The idea was well received and Lanyavu Sacco was founded in 2008, initially to allow members to save and borrow money.

However, the mandate was expanded to help members acquire property, leading to the incorporation of Lanyavu Gardens Ltd.

Bishop Adoyo, Mr Nyakundi and Dr Gikunda, as sacco leaders, were appointed directors of the new company.

According to the court documents, Lanyavu Gardens Ltd acquired 72 acres of land (now valued at more than Sh5 billion), which was sub-divided into 130 plots.

Each member was required to pay Sh4 million for a half-acre plot. However, not all those who paid were allocated land, prompting some to go to court.

But in defence, Mr Nyakundi sought to disassociate the church from the company’s activities, saying the purchase of the Karen land was not exclusive to church members.