Businessmen charged with conspiracy to defraud Mombasa Hotel land worth Sh100 million 

Two businessmen were charged in a Mombasa court with conspiring to defraud a hotel chain of land worth Sh100 million.

Isaac Juma Obila and Omar Guma Ibrahim appeared before Resident Magistrate Hon. Green Odera, where they faced charges of conspiracy to defraud, contrary to Section 317 of the Penal Code.

According to the charge sheet, on unknown dates and places within Kenya, the duo jointly with others not before court allegedly conspired to defraud Kilifi Hotels Limited of two parcels of land, Grants LR No. 10173 CR 19906 and LR No. 10174 CR 19907.

The court heard that the parcels were fraudulently amalgamated into Grant LR No. 28432 CR No. 64591 and registered under Arvic Tours and Travels Limited, before a new grant (LR No. 28432/2 CR No. 70282) was created and registered under Ibrahim’s name.

Separately, Obila was charged with obtaining registration of title contrary to Section 320 of the Penal Code.

He is accused of fraudulently causing the registration of Grant LR No. 28432 CR No. 64591 at the Mombasa Land Registry on February 10, 2015, while acting as a director of Arvic Tours and Travels Limited.

Ibrahim faced a similar charge of obtaining registration of title where it was alleged that on July 18, 2017, he fraudulently obtained registration of Grant LR No. 28432/2 CR No. 70282 at the Mombasa Land Registry, also with the intent to defraud Kilifi Hotels Limited.

The two denied all charges and, through their lawyers, applied to be released on reasonable bond terms.

Prosecution Counsel Purity Musembi opposed lenient terms, urging the court to consider the grave nature of the offence and the value of the property involved.

In his ruling, Magistrate Green Odera ordered the accused to deposit a bond of Sh500, 000 with a surety of a similar amount or alternatively pay cash bail of Sh100, 000.

The matter was scheduled for pre-trial on September 9, 2025.