Two businessmen have been charged in a Mombasa court for allegedly conspiring to defraud a hotel chain of prime land valued at KSh100 million.
The accused, Isaac Juma Obila and Omar Guma Ibrahim, were arraigned before Resident Magistrate Hon. Green Odera on charges of conspiracy to defraud, contrary to Section 317 of the Penal Code.
According to court documents, the two, together with others not present before the court, allegedly conspired to defraud Kilifi Hotels Limited of two prime parcels of land, Grants LR No. 10173 CR 19906 and LR No. 10174 CR 19907. Investigations revealed that the parcels were unlawfully amalgamated into a new grant under Arvic Tours and Travels Limited (LR No. 28432 CR No. 64591). The land was later transferred again to Ibrahim through another title, LR No. 28432/2 CR No. 70282.
Separately, Obila was accused of fraudulently registering Grant LR No. 28432 CR No. 64591 in 2015 while serving as a director of Arvic Tours and Travels Limited. On the other hand, Ibrahim allegedly secured the registration of LR No. 28432/2 CR No. 70282 in 2017, with intent to defraud Kilifi Hotels Limited of its property.
Both businessmen denied the charges, with their defense lawyers requesting the court to consider lenient bond terms, arguing that the accusations were not enough reason to restrict their freedom.
However, Prosecution Counsel Purity Musembi strongly opposed this, insisting on stricter bond terms due to the seriousness of the case and the high value of the property involved. She argued that releasing the suspects on lenient terms could compromise the integrity of the case.
In his ruling, Magistrate Odera set the bond terms at KSh500,000 for each accused with one surety of the same amount. Alternatively, they could each pay a cash bail of KSh100,000.
The case has been scheduled for pre-trial mention on September 9, 2025, where directions on hearing and witness submissions will be given.
This case highlights the increasing scrutiny around land transactions in Kenya, particularly in coastal areas where prime properties are highly contested. It also underscores the government’s commitment to curbing fraudulent land dealings that threaten property rights and investment in the hospitality sector.
