A Nairobi woman, Monica Wanjiku Kimani, accused of masterminding a multi-million-shilling fraud scheme, has been released on Ksh.5 million cash bail. Kimani appeared before Senior Principal Magistrate Gilbert Shikwe at the Makadara Law Courts, where she faced charges of operating an illegal collective investment scheme without a licence from the Capital Markets Authority.
According to investigators, Kimani allegedly exploited the trust of people within her social circles to run the investment scheme, targeting members of her local chama with promises of a 10 per cent monthly return on their principal investment. The prosecution described the operation as a Ponzi-style scheme, alleging that money from new investors was used to pay earlier investors, creating the impression that the venture was profitable.
The scheme allegedly collapsed in April, after which Kimani is accused of disappearing. Prosecutor Erick Mururu opposed her release on bail, citing concerns that she could interfere with other victims who were yet to record their statements. Despite the prosecution's objections, the court granted Kimani Ksh.5 million cash bail or an alternative bond of Ksh.10 million.
One of the victims who attended the proceedings said she invested Ksh.4.8 million after being assured she would receive monthly returns. The victim stated that Kimani paid her for some time but later refused to pay, leaving her at risk of losing all her money. The victim claimed that as a group, they have lost over Ksh.36 million.
Another complainant said she invested Ksh.12 million and accused Kimani of repeatedly giving excuses when she sought to recover her money. The complainant stated that Kimani disappeared completely when people stopped giving her money, and they have tried getting their funds back without any success.
The five complainants in the case are demanding more than Ksh.36 million from the accused. Detectives from Kasarani Police Station believe more victims may have been affected and are yet to come forward to record statements. Kimani is expected back in court on October 14 for mention of the case as police continue tracing the missing funds.
The case has raised concerns about the prevalence of investment scams in Kenya, with many Kenyans losing money to such schemes. The Capital Markets Authority has warned the public about the risks of investing in unlicensed schemes, emphasizing the importance of verifying the legitimacy of investment opportunities before committing funds.
Key points
- Monica Wanjiku Kimani was released on Ksh.5 million cash bail over allegations of a multi-million-shilling fraud scheme.
- The alleged scheme, described as a Ponzi-style operation, targeted members of Kimani's local chama with promises of a 10 per cent monthly return on investment.
- The five complainants in the case are demanding more than Ksh.36 million from Kimani, with detectives suspecting that more victims may be affected.
