Nairobi woman accused of Ksh.36M investment fraud released

Monica Wanjiku 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.

Investigators allege Kimani exploited the trust of people within her social circles to run the investment scheme.

Most of the alleged victims were members of her local chama and were promised 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.

“I want this honourable court to listen carefully to the voices of the five complainants already in this court. These are families who have been left devastated and crying to this court loud, and we cannot guarantee that if she's released on bail, she will not interfere with those other victims who we are still tracing and even those in this court,” Mururu said.

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.

“Since she was in our chama, we knew her. She told us we could invest in her and be getting 10 per cent monthly. I invested Ksh.4.8 million. She paid me for some time, but later on around April, she refused to pay me. I am at risk of losing all my money. As a group, we have lost over Ksh.36 million,” the victim said.

Another complainant said she invested Ksh.12 million and accused Kimani of repeatedly giving excuses when she sought to recover her money.

“On my end, I invested Ksh.12 million. Alituchezea sana for some time akidanganya anatafuta pesa za kutulipa. So when people stopped giving her money, she disappeared completely. We have tried getting our funds back without any success,” she said.

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.