report of the taskforce on pyramid schemes
TRANSCRIPT
Report of the Taskforce on Pyramid Schemes
1
REPUBLIC OF KENYA
MINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETING
Report of the
TASKFORCE ON PYRAMID SCHEMES
CHAIRMAN HON. FRANCIS NYENZE
PRESENTED TO:
Report of the Taskforce on Pyramid Schemes
2
HON. JOSEPH W. N. NYAGAH, EGH, M.P.
MINISTER FOR CO-OPERATIVE DEVELOPMENT AND MARKETING
24TH JUNE, 2009
Report of the Taskforce on Pyramid
Schemes
3
Report of the Taskforce on Pyramid Schemes
Report of the Taskforce on Pyramid Schemes
4
Taskforce on Pyramid Schemes,
NSSF Building, Block ‘B’ 10th floor,
P.O. Box 40811-00100
NAIROBI
17th June, 2009
Hon. Joseph W. N. Nyagah, EGH, MP Minister for Co-operative Development and Marketing, P.O. Box 30547,
NAIROBI
Dear Sir,
RE: REPORT OF THE TASKFORCE ON PYRAMID SCHEMES
Sir, you appointed us as members of the Taskforce on Pyramid Schemes to investigate the operations of Pyramid Schemes and establish the extent of their impact in the country. We have completed our task in accordance with the terms of reference and now have the honour to submit this report to you. The report contains our unanimous conclusions and recommendations. We take this opportunity to thank you for the honour and trust which you have bestowed on us. Accept the assurances of our highest regard. Yours faithfully, Hon. Francis Nyenze, EGH –
Chairman…………………………..
Amb. John Mukuriah,EBS – Vice Chairman
……………………
Report of the Taskforce on Pyramid Schemes
5
Mr. David Oduol Odhiambo, CPSK, Advocate – Member…..……………………
Mr. Harold Rurigi Mwai –
Member………………………………
Mrs. Sakina Adan –
Member………………………………
Mrs. Emily Manga Mwachoo –
member……………………………
TABLE OF CONTENTS FOREWORD…………………………………………………………………… ix LIST OF ACRONYMS………………………………………………………… xii EXECUTIVE SUMMARY……………………………………………………… xiv
PART 1
INTRODUCTION AND HISTORICAL OVERVIEW CHAPTER 1……………………………………………………………………… 3
INTRODUCTION………………………………………………………………. 3 1.1 Background and Introduction…………………………………………………… 4 1.2 Constitution & Appointment of Task force…………………………………. 4 1.3 Terms of Reference…………………………………………………………………. 4 1.4 Methodology…………………………………………………………………………… 6 1.5 Challenges and Limitations………………………………………………………. 10 1.6 Organization of the Report………………………………………………………. 12 CHAPTER 2…………………………………………………………………… 13
HISTORICAL BACKGROUND…………………………………………….. 13
2.1 Introduction ………………………………………………………………………… 13 2.2 Definition and Historical background of Pyramid Schemes………… 13 2.3 Pyramid schemes and Multi-level Marketing…………………………… 14 2.4 The Kenyan Situation……………………………………………………………. 15 2.5 Factors responsible for spread of Pyramid Schemes…………………. 16 2.5.1 Economic factors…………………………………………………………………… 17 2.5.2 Religious factors…………………………………………………………………… 18 2.5.3 Legislative Factors……………………………………………………………….. 19 2.5.4 Social Factors……………………………………………………………………… 20
Report of the Taskforce on Pyramid Schemes
6
2.5.5 Co-operative Factors……………………………………………………………. 20
PART 2
PYRAMID SCHEMES: A DETAILED ANALYSIS OF THE KENYAN
PERSPECTIVE
CHAPTER 3…………………………………………………………………….. 24
PYRAMID SCHEMES IN KENYA…………………………………………… 24
3.1 Introduction………………………………………………………………………….. 24 3.1.1 Legal Nature…………………………………………………………………………. 24 3.1.2 Operational Nature………………………………………………………………… 25 3.2 Number of Pyramid Schemes in Kenya……………………………………… 29 3.3 Directors of Pyramid Schemes………………………………………………… 29 3.4 Financial Indebtedness to Investors…………………………………………… 32 3.5 Pyramid Schemes Victims Initiatives………………………………………….. 39 CHAPTER 4…………………………………………………………………… 43 PUBLIC HEARINGS…………………………………………………………. 43
4.1 Introduction………………………………………………………………………….. 43 4.2 Issues raised by Provincial Administration………………………………… 44 4.2.1 Nairobi Province……………………………………………………………………. 44 4.2.2 Meru……………………………………………………………………………………. 44 4.2.3 Embu…………………………………………………………………………………... 44 4.2.4 Nyeri…………………………………………………………………………………… 45 4.2.5 Muranga……………………………………………………………………………… 45 4.2.6 Thika………………………………………………………………………………….. 46 4.2.7 Kisii……………………………………………………………………………………. 46 4.2.8 Kakamega…………………………………………………………………………… 46 4.2.9 Bungoma…………………………………………………………………………….. 47 4.2.10 Kisumu……………………………………………………………………………….. 47 4.2.11 Nakuru……………………………………………………………………………….. 47 4.2.12 Eldoret…………………………………………………………………………………. 47 4.2.13 Mombasa……………………………………………………………………………… 48 4.2.14 Malindi…………………………………………………………………………………. 48 4.3 Concerns raised during Public Hearings…………………………………… 48 4.4 Taskforce Observations…………………………………………………………… 49 CHAPTER 5…………………………………………………………………… 52
FUNDS & OTHER ASSETS………………………………………………….. 52
5.1 Introduction…………………………………………………………………………… 52 5.2 Identification of Bank Accounts………………………………………………… 52 5.2.1 Category 1: Bank Accounts in Institution Names………………………… 52 5.2.2 Category 2: Bank Accounts in Personal Names…………………………… 59 5.2.3 Category 3: Frozen Bank Accounts……………………………………………… 61 5.3 Conclusion……………………………………………………………………………… 62
Report of the Taskforce on Pyramid Schemes
7
5.4 Other Assets…………………………………………………………………………. 63 5.4.1 Identification and Status of Other Assets…………………………………… 63 5.5 Constraints…………………………………………………………………………… 65 5.6 Recommendations……………………………………………………………….. 66
CHAPTER 6…………………………………………………………………… 68
EFFECTS OF PYRAMID SCHEMES…………………………………..…… 68
6.1 Introduction………………………………………………………………………….. 68 6.2 Economic effects……………………………………………………………………. 68 6.3 Security effects……………………………………………………………………… 70 6.4 Socio-Economic Effects ………..……………………………………………….. 71 6.5 Religious Effects……………………………………………………………………. 73
CHAPTER 7……………………………………………………………………. 74
ROLE OF GOVERNMENT INSTITUTIONS AND AGENCIES………… 74
7.1 Introduction………………………………………………………………………… 74 7.2 Government Institutions…………………………………………………………… 74 7.2.1 Ministry of Finance………………………………………………………………….. 74 7.2.2 Office of the President, Provincial Administration &
Internal Security……………………………………………………………………. 76 7.2.2.1 N.S.I.S…………………………………………………………………………….. 76 7.2.2.2 C.I.D………………………………………………………………………………… 76 7.2.2.3 Banking Fraud investigation Unit…………………………………………… 77 7.2.2.4 Provincial Administration………………………………………………………. 77 7.2.2.5 Attorney General………………………………………………………………… 78 7.2.2.6 Judiciary……………………………………………………………………………. 78 7.2.3 Ministry of Co-operative Development & Marketing …………………… 79 7.2.4 Ministry of Lands …………………………………………………………………… 82 7.2.5 Ministry of Social Services…………………………..…………………………. 82 7.2.6 Government Agencies……………………………………………………………. 82 7.2.7 Recommendations ………………………………………………………………….. 85
PART III THE WAY FORWARD
CHAPTER 8……………………………………………………………………… 89 PUBLIC EDUCATION AND AWARENESS………………………………… 89
8.1 Introduction……………………………………………………………………………. 89 8.2 Channels for Awareness Creation………………………………………………. 89 8.2.1 Government Agencies……………………………………………………………… 89 8.2.1.1 Office of Government Spokesman…………………………………. 89
Report of the Taskforce on Pyramid Schemes
8
8.2.1.2 Provincial Administration………………………………………………. 90 8.2.1.3 Regulatory Bodies……………………………………………………….. 90 8.2.1.4 Relevant Government Ministries……………………………………. 90 8.2.2 Churches………………………………………………………………………………. 90 8.2.3 Representative Bodies…………………………………………………………… 91 8.2.4 Electronic and Print Media………………………………………………………… 91 8.2.5 Billboards, Posters and Pamphlets…………………………………………… 91 8.2.6 Mobile Phones………………………………………………………………………… 92 8.2.7 Panel Interviews……………………………………………………………………… 92 8.2.8 Arts……………………………………………………………………………………… 92 8.2.9 Seminars………………………………………………………………………………. 93 8.2.10 Internet………………………………………………………………………………. 93 8.2.11 Others………………………………………………………………………………….. 93 8.3 Conclusion……………………………………………………………………………… 94 8.3.1 Resource Mobilisation…………………………………………………………… 94 8.4 Recommendations…………………………………………………………………….. 95 CHAPTER 9…………………………………………………………………… 96
LEGAL FRAMEWORK IN KENYA………………………………………… 96 9.1 Introduction…………………………………………………………………………… 96 9.2 Analysis of Relevant Existing Legislation……………………………………… 96 9.2.1 Companies Act……………………………………………………………………… 96 9.2.2 Business Names Act………………………………………………………………… 97 9.2.3 Co-operative Societies Act……………………………………………………… 98 9.3 Steps taken by Ministry of Co-operatives & Marketing……………… 98 9.4 Offences under Existing Legislation……………………………………………. 100 9.5 Shortcomings of Existing Legislation………………………………………… 101 9.6 Recommendations ………………………………………………………………….. 102
CHAPTER 10……………………………………………………………………. 104
SUMMARY RECOMMENDATIONS……………………………………. 104
Report of the Taskforce on Pyramid Schemes
9
FOREWORD
n 14th January, 2009 the Hon. Minister for Co-operative Development and
Marketing appointed a Taskforce to look into the operations of pyramid
schemes. The appointment of the Taskforce by the Government was a
reaction to the hue and cry from victims of pyramid schemes and other related
schemes.
The Taskforce held public hearings countrywide where views from the victims
were received. A lot of data regarding the particulars of the investors, directors
and promoters of pyramid schemes was received during the registration exercise.
Interviews were also held to provide opportunities to directors of pyramid
schemes, individuals and groups to give information on the role they may have
played in the pyramid schemes saga. Our findings therefore, are a reflection of
what Kenyans especially the investors think about pyramid schemes.
The Taskforce wishes to express their gratitude to Hon. Joseph W. N. Nyagah,
EGH, MP Minister for Co-operative Development and Marketing for his
commitment, cooperation, advice and unfailing support.
The Taskforce recognizes Hon. Uhuru Kenyatta, E.G.H, M.P Deputy Prime
Minister, and Minister for Finance for his commitment in dealing with the
pyramid schemes menace.
The Taskforce would not have accomplished its mandate without the logistical
support from the Permanent Secretary, Ministry of Co-operative Development and
Marketing Mr. Seno Nyakenyanya, CBS, and his staff.
We acknowledge the institutional support from Mr. Fredrick F. Odhiambo, MBS,
the Commissioner for Co-operative Development (CCD) and the logistical support
provided by the Provincial Co-operative Officers (PCOs), District Co-operative O
fficers(DCOs), and their staff who tirelessly coordinated the pyramid victims’
registration exercise. In particular, Taskforce acknowledges Mr. J. Kenduiywa,
Mr. S. Ongeti, Mr. P.K.Wanjohi and Mr. P. Koremo of CCDS office for providing
information on Cooperative Societies associated with pyramid schemes and ICT
Department headed by Mr. Alwanga Mbeche for ICT support. Special mention to
Mr. G. Njangombe, R Maseki, F.M. Maina,Ms. D. Ouma, R. Mwithiga, J.
O
Report of the Taskforce on Pyramid Schemes
10
Muchembe, J.K. Maina and J. Kamau for providing information on Cooperative
Societies under liquidation and inquiry.
We are grateful to Mr. Joseph Kinyua, CBS, Permanent Secretary, Ministry of
Finance (MoF) and Dr. Geoffrey Mwau, Economic Secretary for finding time to
consult with us. We greatly benefited from their views and proposals.
The Taskforce also acknowledges the overwhelming support received from Mr.
Francis Kimemia, CBS, Permanent Secretary Provincial Administration and
Internal Security, Provincial and District Commissioners (DC) during the public
hearings.
The Taskforce wishes to express its gratitude to the pyramid schemes victims for
turning up in large numbers during the public hearings countrywide and sharing
real life experiences with the Taskforce. We also thank them for turning up during
the registration exercise.
We acknowledge individuals, professional bodies and institutions who offered
their views to the Taskforce. In particular, we wish to thank Mr. Apollo Mboya,
Deputy Secretary, Law Society of Kenya(LSK) and Morris Kimuli an Advocate of
the High Court of Kenya, for providing valuable information on proposed legal
reforms which included a draft on Anti-pyramid schemes Legislation. We also
acknowledge support given by Mr. J. K. Wanyela, Executive Director, Kenya
Bankers Association (KBA). We express our gratitude to Mr. C. Ademba, HSC,
Managing Director Kenya Union of Savings and Credit ( Kuscco) ltd, for
providing insightful proposals.
We wish to acknowledge the fruitful discussions held with Kenya Anti Corruption
Commission (KACC) officials namely; Mr. Peter Mwangi, Principal Officer
incharge of operations, Mr. Olga Sewe, Principal Attorney, Crime Litigation and
Asset Recovery, Mr. Patrick Owiny, Data Collection and Mr. Kennedy Bosire ,
Principal Forensic Investigator.
The Taskforce acknowledges the discussions held with Central Bank of Kenya
(CBK) team. Special mention goes to Ms Rose Ndetho, Director Banking
Supervision and her team of Mr. Fredrick Pere, Mr. Michael Owour, Mr. Paul
Report of the Taskforce on Pyramid Schemes
11
Mugo, Ms Elizabeth Njogu and Mr. Paul Ndambuki of Banking Fraud
Investigation Department (BFID).
We also benefited from discussions held with Mr. Gedeon M. Kimilu, MBS,
Senior Assistant Commissioner, Criminal Investigation Department (CID), and
Mr. Henry Otieno Ochido of NGOs Coordinating Board.
We wish to acknowledge information provided by Ms Faith Kabata, Assistant
Executive Director incharge of complaints and investigations at the Public
Complaints Standing Committee (PCSC).
We also acknowledge Mr. Kanyangi of Kanyangi and Company Advocates and
Onyango Bonyo, lawyer and private consultant who provided valuable
information regarding the operations of pyramid schemes.
We are grateful to the print and electronic media for highlighting the plight of the
pyramid schemes victims, Mrs Wangui Mugo, Public Relations Officer, Ministry
of Cooperative Development & Marketing and Ms Eunice Ajwang for offering
hansard services to the Taskforce.
The Taskforce wishes to thank the following for raising the plight of Kenyans and
availing valuable data to the Taskforce. Pastor Samuel Kariuki, Bishop W.
Mamboleo, Eliud Thuku, Joseph Kinyua and Bishop Kinyanjui all of National
Pyramid Victims Initiative. We also acknowledge valuable information provided
by Mr. Benson Kiamba, Rev. Margaret Prem and Bishop Erastus Njoroge of Mt.
Kenya pyramid schemes initiative group.
The Taskforce wishes to express its gratitude to the Taskforce Secretary, Mr.
Philip Gichuki who worked tirelessly to enable the Taskforce complete its task.
Special thanks to Mrs. Roselyne Ragama, Mr. Allan Githaiga and Mr. Fredrick
Kaduka for their research, technical and logistical support without which the
Taskforce would not have completed its task satisfactorily.
We also wish to appreciate the secretarial and support staff for their commitment
and support. We are grateful to the following; Miss Beatrice Ochieng, Mr.
Andrew O. Makokha and Mrs. Edith Mwaniki for secretarial services. Mrs. Anne
Marwa for ensuring the Taskforce was comfortable throughout the period. Ms
Mercy Muchina for coordinating transport, Mr. James Njoroge and Janet Kamanga
Report of the Taskforce on Pyramid Schemes
12
for being able drivers, Cpl. Evans Morara and Cpl. Benson Mariga for the security
arrangements.
The Taskforce chairman would like to especially acknowledge all the Taskforce
members individually for their devotion and resilience during the entire period.
The Taskforce members’ commitment to duty especially during the critical phase
of report writing is highly acknowledged.
The Taskforce is pleased to submit this report to Hon. Minister for Co-operative
Development and Marketing with respect and humility. It is the hope of the
Taskforce that the recommendations will be found useful in dealing with issues
associated with the pyramid schemes saga.
…..............................................
Hon. Francis Nyenze
Chairman,
Taskforce on Pyramid Scheme
Report of the Taskforce on Pyramid Schemes
13
LIST OF ACRONYMS
A.S.K Agricultural Shows of Kenya
ACID African Christian in Development
A.G Attorney General
AIC African Inland Church
BFID Banking Fraud Investigation Department
C.C.D Commissioner for Cooperative Development
CBK Central Bank
CBOs Community Based Organizations
CBS Conqueror of the Burning Spear
CEO Chief Executive Officers
CID Criminal Investigation Department
CMA Capital Markets Authority
DCOs District Cooperative Officers
DCs District Commissioners
DECI Deci Capacity Building Entrepreneur
DOs District Officers
GNLD Golden Neo-Life Diamond
HSC Head of State Commendation
KBA Kenya Bankers Association
KACC Kenya Anti-corruption Commission
KBC Kenya Broadcasting Cooperation
KUSCCO Kenya Union of Savings and Credit Cooperatives
LSK Law Society of Kenya
MFI Micro-Finance Institutions
MBS Moran of the Burning Spear
MLM Multi-Level Marketing
MP Member of Parliament
MOCD & M Ministry of Cooperative Development and Marketing
Report of the Taskforce on Pyramid Schemes
14
MOF Ministry of Finance
NACOS National Cooperative Organizations
NCCK National Council of Churches of Kenya
NGOs Non Governmental Organizations
NSIS National Security Intelligence Service
OGW Order of the Golden Worrier
OP Office of the President
PCEA Presbyterian Church of East Africa
PC Provincial Commissioner
PCO Provincial Co-operative Officer
PCSC Public Complaints Standing Committee
RBA Retirement Benefits Authority
SACCO Savings and Credit Co-operative
SDA Seventh Day Adventist
SUPKEM Supreme Council of Kenya Muslims
T.O.R Terms of Reference
Report of the Taskforce on Pyramid Schemes
15
EXECUTIVE SUMMARY
A: Background
The Taskforce on Pyramid Schemes was appointed by the Hon. Minister of
Co-operative Development on the 14th January 2009 and launched on the
9th February 2009 upon which it commenced business. Its mandate was to
inquire and investigate into the operations of pyramid schemes and pyramid
related schemes.
The Pyramid Schemes camouflaged as co-operative societies in the last
phase of their operations. This left the Hon. Minister for Co-operative
Development with the responsibility of dealing with the crisis as all queries
were directed to the ministry. It prompted the minister to appoint a
Taskforce to investigate the pyramid schemes saga to help avert a looming
crisis and resolve the plight of many Kenyans affected by the schemes.
This report is organized into three parts and ten chapters. Part I consisting
of two chapters contains the introduction and history of pyramid schemes.
Part II has five chapters and looks into the nature and number of pyramid
schemes in Kenya, pinpoints the masterminds of these schemes,
investigates the funds and other assets held by the schemes, analyses the
public hearings, looks at role of Government institutions and Agencies and
the effect of pyramid schemes in Kenya. Part III consisting of three
chapters addresses the way forward in terms of legal reforms, public
awareness and recommendations.
This report presents on analysis of the views of the Kenyans especially the
victims and other critical stakeholders. The Taskforce believes that these
recommendations will initiate the process to address the problems created
by the emergence and collapse of pyramid schemes.
B: Findings and Conclusions
(i) Investors’ data
Report of the Taskforce on Pyramid Schemes
16
The Taskforce conducted a countrywide registration exercise from
the 24th February to 30th April 2009 where data on the number of
pyramid schemes, investors and the total amounts invested was
compiled.
From the above data, 270 pyramid and other related schemes were
identified and 148,784 investors registered as having invested a total
sum of Kshs. 8,178,737,402. This figure reflects the principal
amount invested and does not include the expected returns.
While the registration was successful, we observe that our figures
are not conclusive since investors were still presenting themselves
for registration after the closure of the exercise.
The top ten institutions in terms of amounts invested are as follows;
NAME OF SCHEME NUMBER OF
INVESTORS
AMOUNT
1 DECI 93,485 2,405,518,832.00
2 Clip Investments Sacco Ltd 5,846 1,993,866,422.00
3 Kenya Business Community Sacco
Ltd
921 780,698,218.00
4 Sasanet Investment Sacco Ltd 629 739,948,412.00
5 Jitegemee Investment Sacco Ltd 3,828 494,401,600.00
6 Circuit Investment 1,392 348,943,103.00
7 Family In Need Organisation
(FINO)
4,580 157,280,553.00
8 Global Entreprenership 9,206 139,006,632.00
9 Spell Investment 544 120,326,860.00
10 Mont Blanq Afrique 774 82,834,000.00
Totals 121,205 7,262,824,632.00
Source: Registration of claims data
(ii) Effects of Pyramid Schemes
The collapse of the schemes had adverse effects to the investors.
They ranged from loss of earnings, family and matrimonial
Report of the Taskforce on Pyramid Schemes
17
breakups, suicides, depression and illnesses like diabetes and high
blood pressure.
The Taskforce identified reasons that contributed to the spread of the
schemes as a desire for economic empowerment, lack of awareness
and greed.
(iii) Frozen Accounts
During the public hearings, it was alleged that a sum of Kshs. 5b
was held up by Central Bank of Kenya (CBK) in frozen accounts.
According to CBK, the law forbids it from sharing information on
bank accounts with 3rd parties. Consequently, the Taskforce could
not establish the amounts held in the frozen accounts.
(iv) Other Bank Accounts
The Taskforce conducted investigations with a view of establishing
the identity and status of accounts operated by the schemes. These
accounts were held in the names of the schemes or directors and
were characterized by numerous deposits and huge withdrawals.
It was established that a majority of the accounts were closed with
nil balances. Due to the lengthy procedures of establishing the status
of accounts and the high number of schemes involved which stood at
270, the Taskforce was not able to establish the current status of all
the accounts.
(v) Response by Government Agencies (Central Bank of Kenya)
The Taskforce noted that the CBK took measures aimed at
addressing the issue of pyramid schemes.
Report of the Taskforce on Pyramid Schemes
18
a) The CBK issued two press notices in February and May 2007
urging the public against investing in pyramid schemes.
These statements were negatively received by the public who
viewed them as government interference to otherwise
legitimate investments.
b) CBK directed commercial banks to conduct due diligence on
the accounts exhibiting characteristics of pyramid schemes
and not to accept deposits into such accounts and to act
decisively in closing them.
c) CBK spearheaded the formation of a multi-sectoral team to
develop and recommend a strategy for sustained public
awareness campaign on pyramid schemes.
(vi) Directors
The report has documented the identities of individuals who were
behind these schemes. In some cases, the directors controlled the
schemes by proxy. Due care has been taken to verify the accuracy of
these information. The directors were afforded an opportunity to
appear before the Taskforce and ascertain the truth regarding the
claims made against them but regrettably a majority failed to appear.
A sampled list of the masterminds of the major schemes is as
follows; (Note: a complete list of the directors is highlighted in
chapter 3)
INSTITUTION DIRECTORS/PROPRIETORS/OFFICIALS DECI George Odinga Donde
Tujibebe Sacco George Odinga Donde - Chairman
Godfrey Kamanda Gakure (Bishop)
Ann Zawadi - (Advocate)
Ambassador Mary Odinga
CLIP Investment Cooperative Soc. ltd
Peter Ndakwe - Chairman Meshack Gachago - V/C Didycus Shyamwama - Treasurer
Kenya business community Sacco,
Francis Omurwa- Chairman
Angelo Mung’ri M’inoti - V/Chairman
Festus Kizisa - Secretary
Report of the Taskforce on Pyramid Schemes
19
Ltd. Elias Kathurima Rutere - Treasurer
Barnabas Mwangangi - Secretary
Sasanet Investment cooperative
Michael Chege - Chairman Dorothy Wangui - Hon. Secretary Ronald Ouma - Treasurer Job Nyamao - V/chairman
Sasanet ltd. Michael Chege and Sammy Gitau Jitegemee Sacco/ Mont Blanq Afrique Ltd
Jackson Kinyoho Mburu - Chairman Patrick Nyoike Maina - Member Florence Wambui Busiega - Vice Chairman James Mate Njeru - Treasurer Elizabeth Ngoiri Mwangi - Secretary
Family in Need Organization (FINO)
John Leonard Wanyoike Winfred Gatakaa Kiria Rahab Maimutie Wanuoike
Global Entrepreneurship
Patrick Ayisi Ingot - Chairman
Christopher Mweresa Livunda - V/Chairman
Florence Nzoeva Mulama - Secretary
Edward Murithi Matu - Treasurer
Spell investment Boniface Anderson Ngosia - Chairman Faith Ayoti - V/Chairman Consolata Nabwire - Secretary Eunice Negesa - Treasurer
Amity Investment Charles Murithi Kirigua
Due to shortage of time the taskforce did not invite all parties
involved for interviews especially Regional promoters.
(vii) Restitution
The Taskforce suspects that investors’ funds were diverted by the
directors to acquire properties for their own selfish interests. It was
observed that some of the properties had been transferred to other
parties with a view of defeating justice. Some highlights are as
follows;
Scheme Director Properties
Clip
Investments
Sacco Ltd
Peter Ndakwe Peter Ndakwe is alleged to have bought plots in Runda
worth Kshs.200m and transferred the property to
Pakinstar Ltd of Sun Jopskin SA Pentinkson, Panama for
Kshs.25m each. Transfers effected on 11.7.2006 and
20.4.2007. The L.R are 14970/15, 14970/14, 14970/7
and 14970/6. The transfers were made at the height of
complaints by investors
Report of the Taskforce on Pyramid Schemes
20
(viii) Legal Framework
The Taskforce observed that the current legal framework is
inadequate. This contributed to the spread of the schemes that
exploited the legal loopholes.
C. Recommendations
The Taskforce notes with concern the negative effects that the pyramid
schemes saga has caused on investors and the general public and views
it as a matter of national concern. In view of the foregoing, the
Taskforce recommends that the Government commits itself to the
following;
(i) Criminal prosecution
The Attorney General (AG), under the existing legal system,
institutes immediate criminal prosecution of all directors
/proprietors/officials who were engaged in pyramid schemes
activities.
It was alleged that Ndakwe may own a lot of property in
Canada
Sasanet
Investment
Ltd
Michael Chege 30 units of flats worth Kshs.60m in Sunrise estate.
11.5 acres in Nyari Estate, Nairobi. Deposit of Kshs.
40m paid for the land
4 flats along Chaka road, Milimani
32 flats in Imara Daima.(Swara Flats) each sold for
Kshs.2.5m
All properties sold through his advocate Ajaa
Olubayi of Ajaa & Co. Advocates
Spell
Investments
Ltd
Boniface
Anderson
Ngosia
(deceased)
Account held in Stanbic Bank with Kshs. 200m
transferred to his mother upon death.
Houses formerly belonging to Teleposta Pension
Scheme worth approx. 11m
A 23m property in Lavington
Report of the Taskforce on Pyramid Schemes
21
(ii) Civil proceedings
Institution of civil proceedings against the directors/ proprietors
/officials of the pyramid schemes to recover the funds.
(iii) Amnesty from prosecution
Amnesty from criminal prosecution be considered for directors/
proprietors /officials or other persons willing to refund back
investors’ funds within one hundred and twenty (120) days.
(iv) Legal Framework
Strengthening of the legal framework to provide for;
(a) The immediate amendment of the Penal Code (Cap 63) so as
to make provisions for the prohibition of promotion or taking
part in pyramid schemes.
(b) The enactment of an Anti-Pyramid Schemes Act within one
year to outlaw all aspects relating to pyramid schemes.
(c) Enactment of The Proceeds of Crime and Anti-Money
Laundering Bill 2008 within six months. This proposed
legislation has good provisions on assets recovery.
(v) Investigations/ restitution;
a) The CID to undertake and complete investigations on Bank
Accounts within six (6) months.
b) The CID to undertake and complete tracing of assets
acquired from proceeds of pyramid schemes operations
within one year with a view of recovery and restitution.
Report of the Taskforce on Pyramid Schemes
22
c) The government to enlist the assistance of foreign missions
/governments where the perpetrators may have invested
proceeds from pyramid schemes activities.
d). Parliament to fast-track the enactment of Mutual Legal
Assistance Bill that was published on 18th May, 2009, in (c)
above.
(vi) Standing Committee
The immediate setting up of a Standing Committee under the
Ministry of Co-operative Development and Marketing comprising of
relevant government ministries/agencies and private sector. This
committee will be responsible for the following;
a) Monitoring the implementation of the necessary legal
framework.
b) Setting up and administration of the Trust Fund.
c) Overseeing the investigation of accounts and tracing of
assets.
d) To be responsible for the restitution of recovered assets, if
any.
(vii) Trust Fund
A trust fund be set up under the Ministry of Co-operative
Development and Marketing to manage funds and properties
recovered. The members of the said fund should include other
relevant government ministries/agencies and reputable Kenyans.
(viii) Judicial Commission
Formation of a judicial commission to undertake further
investigations aimed at tracing funds and assets for restitution to
investors.
(ix) Frozen Accounts
Report of the Taskforce on Pyramid Schemes
23
The CBK issues a public statement on the current status of all
frozen accounts related to pyramid schemes.
(x) Anti-Pyramid Schemes Authority
An Anti-Pyramid Schemes Authority be created under the proposed
Act. The Authority will take up the functions of the proposed
Standing Committee once the Act is enacted and operationalised.
(xi) Operationalisation of the Sacco Societies Act
The SACCO Act which is yet to be operationalised be fast-tracked by
the Minister for Co-operative Development and Marketing by
gazetting the commencement date and establishing the SACCO
Regulatory Authority. This will ensure strict supervision of the
SACCOs. This is in recognition of the fact that out of 270 institutions
involved, 17 of them were registered under the Cooperative Societies
Act.
(xii) Public awareness campaign
Conduct an aggressive public awareness campaign on the negative
effects of pyramid schemes through a multi-sectoral approach
involving both public and private sector be conducted.
(xiii) Strengthen supervision
All government agencies charged with the registration of institutions
whose activities were associated with pyramid schemes should
institute stringent measures to strengthen their supervision
mechanism by being more vigilant in invoking their investigation
and supervisory powers to ensure that such institutions operate
within their prescribed objects.
(xiv) Enforcement Agencies
Law enforcement agencies to exercise vigilance in their duty to avert
occurrence of pyramid schemes operations in future.
Report of the Taskforce on Pyramid Schemes
24
PART 1
INTRODUCTION AND HISTORICAL
OVERVIEW
Report of the Taskforce on Pyramid Schemes
25
Report of the Taskforce on Pyramid Schemes
26
CHAPTER 1
INTRODUCTION
1.1 Background and Introduction
Generally, a pyramid scheme is an unregulated financial scam that relies on
a pyramid of investors who contribute money to a fraudulent scheme on the
promise of phenomenal returns. The investors are driven by the
phenomenal returns more than the understanding of the commercial
purpose of the transaction and how the returns are generated.
In Kenya, there was a proliferation of these pyramid schemes in the years
of 2006 and 2007. However it is instructive to note that some of these
schemes emerged before 2006. The schemes purported to offer attractive
returns on money ‘invested’ with them. Later they collapsed and sunk with
billions worth of investors’ money.
Investors in collapsed pyramid schemes suffered huge financial losses. As a
result, there were numerous complaints filed with various government
agencies. These complaints took the forms of memorandum, filing of suits
at the courts and filing complaints. The investors were seeking avenues
through which they would be able to recover money lost in the schemes.
Most queries were directed to the Minister for Co-operative Development
and Marketing as the main institutions that operated pyramid schemes
activities registered as Co-operatives in their last phase of operation.
Given the nature and complexity of the problem and the huge pecuniary
losses suffered by the investors, the Government constituted the Taskforce
on pyramid schemes to investigate the operations of the schemes with a
view of presenting recommendations which would guide subsequent action.
Report of the Taskforce on Pyramid Schemes
27
1.2 Constitution and Appointment of Taskforce on pyramid schemes.
The Government of Kenya through the Minister for Co-operative
Development and Marketing Hon. Minister Hon. Joseph W. N. Nyagah,
E.G.H, M.P, appointed a Taskforce to investigate pyramid schemes and
make recommendations thereon that will guide subsequent action.
In a gazette notice dated 16th January 2009 and a subsequent Corrigendum
dated 24th April 2009, the Minister for Co-operative Development and
Marketing, Hon. Joseph W. N. Nyagah, E.G.H, M.P, appointed a 10 man
team as members of the Taskforce. (See Annex 1: Gazette Notice No. 264
& 4068 of 2009)
The Taskforce was officially launched by the Hon. Minister on the 9th
February 2009 after which it commenced its sittings. During the launch, the
Minister noted the herculean task facing the Taskforce. He added that
pyramid schemes had affected people from all walks of life and that the
socio-economic effects were immense. Further, he addressed the impact of
pyramid schemes on the co-operative movement where he noted that co-
operatives had lost a lot of money through members who had borrowed
loans to invest in the schemes. The Minister highlighted the terms of
reference (TOR) for the Taskforce and urged all stakeholders with
information that may help in achieving the TOR to submit the same to the
Taskforce. He appealed to the directors who may be willing to refund the
victims who lost their money, to come forward and do so.
1.3 Terms of Reference.
The following were the TORs of the Taskforce;
(i) To establish the number and nature of pyramid and other related
schemes in existence and the identities of their directors- This involved
identification of the number and perpetrators of schemes operating in
Kenya. The nature of the schemes involved looking into the legal and
operational nature of the schemes with a view of understanding how
they were registered and their modes of operation.
Report of the Taskforce on Pyramid Schemes
28
(ii) To inquire into and investigate the amount and whereabouts of funds
invested into pyramid and other related schemes- the Taskforce was
tasked with establishing the total sums of money invested in the
schemes. This T.O.R also involved establishing the location of these
funds in whatever form that they may be held.
(iii) To formulate and recommend strategies to apprehend operators of
pyramid and other related schemes with a view of recommending
prosecution- This involved a research on the laws applicable and the
formulation of means through which the operators of the schemes
would be held accountable.
(iv) To recommend mechanisms for recovery of funds invested with a
view of recommending restitution of money and/or property
recovered, if any, to the investors- This term of reference as read
together with TOR (ii) requires the Taskforce to provide
mechanisms through which money recovered from the pyramid
schemes operators can be returned back to the investors.
(v) To make recommendations on legal measures that may prohibit
illegal deposit taking by pyramid and other related schemes- This
involved making proposals on legal measures that may deter the
emergence of pyramid schemes in future.
(vi) To advise and recommend regulations to guide financial institutions
in dealing with pyramid & other related schemes- This term tasked
the Taskforce to make recommendations that will guide or enable
financial institutions identify pyramid schemes.
(vii) To formulate and recommend strategy for public awareness
campaigns on pyramid and other similar schemes with a view of
sensitizing members of the public on such schemes- The Taskforce
was mandated to make proposals with a view of raising the level of
awareness amongst the investors.
Report of the Taskforce on Pyramid Schemes
29
(viii) To carry out any other exercise that may be necessary to accomplish
any matters incidental thereto- the Taskforce was given the liberty
to address other issues which may in the opinion of the members be
relevant to pyramid schemes.
1.4 Methodology
The Taskforce used several methods to collect data in order to compile a
comprehensive report. These included Public hearings, review of
memoranda and desk research on various legislations which were of
relevance to the Taskforce. It consulted and received advice from experts
and various stakeholders on various aspects of its terms of reference.
1.4.1 Literature Review
This involved analyzing of literature, journals, legislations and
research papers which contained information pertaining to pyramid
schemes. The information obtained was used to make
recommendations on legal measures to prohibit illegal deposit
taking, proposals on regulations to guide financial institutions and
public awareness strategies.
1.4.2 Interviews.
Interviews involved summoning and inviting persons or institutions
who may have been linked to pyramid schemes. The idea behind this
approach was to enable the Taskforce interrogate these persons with
a view of establishing their level of participation in the schemes.
These persons or representatives of institutions had been adversely
mentioned in the course of the public hearings or identified by the
Taskforce in the course of its investigations. All the interviews were
done face to face and the questions were structured in a manner to
ensure that there was no bias in the way they were asked.
Report of the Taskforce on Pyramid Schemes
30
In relation to interviews, the report contains the following
information; (See Annex 2: Interviewees)
i. A list of the institutions invited via newspaper
advertisements.
ii. List of persons who responded or appeared before the
Taskforce.
In addition to the Directors/Advocates invited for interviews, the
Taskforce contacted the following persons/institutions to appear
before it;
Name Reasons Comments
1 National Pyramid
Scheme Initiative
Victims representatives Representatives appeared
in person
2 Mt. Kenya Pyramid
Scheme Initiative
Victims representatives Representatives appeared
in person
3 Hon. Njeru Ndwiga Was minister for
cooperative during
pyramid scheme saga
Failed to appear
4 Hon. Andrew
Ligale
Alleged to have
promoted DECI.
Failed to appear
5 Bishop Siribaleka Director -ACID Failed to appear
6 Pastor Jamleck
Mutheka
DECI-Center Manager
- EMBU
Appeared in person
7 Gideon Mwiti Associated with new
Akiba Micro Finance
and Kenya Business
Sacco
Did not appear
personally- represented
by advocate
8 Esther Bongo DECI- Center
Manager- Kisumu
Failed to appear
9 Bishop Peter
Ndegwa
DECI- Center
Manager- NYERI
Attended in person
Due to limitation of time and unreliable contacts provided by the
investors during the public hearings, the Taskforce did not manage
to invite some promoters/individuals allegedly associated with
pyramid scheme activities. (See Annex 22 list of
directors/promoters mentioned during the public hearings).
Report of the Taskforce on Pyramid Schemes
31
1.4.3 Media
The Taskforce used the media to publicize its activities. This method
was used to inform members of the public on public hearing venues
and, registration centers for claims and invitations for persons and
institutions to appear before the Taskforce.
The Taskforce was able to use the print media thrice through the
Daily Nation and once in the Standard Newspaper. In addition
announcements were made through KBC Radio station and severally
through vernacular radio stations.
1.4.4 Public hearings
Public hearings were held in various provinces1 where the Taskforce
obtained views from affected investors. These were the areas most
affected by the pyramid schemes. As will be highlighted elsewhere
in this report, North-Eastern province was not visited due to the
minimal spread of the schemes in that region. (See Annex 3:
Schedule of Public hearings)
The main purpose of this hearings was to enable the Taskforce have
a first hand appreciation of the socio-economic effects of pyramid
schemes in Kenya and gather information for investigation. The
public hearings commenced on 24th February 2009 at the Railways
Club in Nairobi. In order to guide discussions during the public
hearings, the Taskforce presented the public with a checklist that
sought to address the following issues;
(i) Name of investor and amount of money invested.
(ii) Manner of introduction to the schemes and reasons for
investing.
(iii) How the investor has been affected as a result of investing in
the schemes.
(iv) The identity of directors and their area of operation.
(v) Name of institution invested in.
1 Nairobi, Central, Rift Valley, Western, Nyanza, Eastern and Coast
Report of the Taskforce on Pyramid Schemes
32
(vi) The expectations of the investors.
(vii) Views from the investors on the recommendations and the
way forward.
As has been mentioned elsewhere in the report, the members of the
public were notified of the public hearings through the media.
The Taskforce appreciates the efforts by the Hon. Minister for Co-
operative Development who was at the forefront in sensitizing
members to turn up for the public hearings.
The Taskforce received representations from people of all walks of
life; students, civil servants, the clergy, self employed people,
entrepreneurs, general members of the public, private pyramid
scheme Initiatives, organizations representing the youth and women.
The Taskforce was able to meet the local and provincial
administration who gave insightful information as to the operations
of these schemes. In addition data and information from investors
which has been used in the compilation of this report was gathered.
1.4.5 Registration of Claims
In order to establish the number of investors affected and amount
involved, the Taskforce conducted a registration exercise from the
24th February to 30th April 2009. The investors were required to
present themselves at the nearest District Co-operative Offices
countrywide. This process of registration involved filling of forms
and attaching copies of National Identity Cards and receipts. In some
few cases, registration of claims was conducted at the venues of the
public hearings.
In addition to establishing the number of investors affected, the
Taskforce using the information obtained was also able to identify
the names of the various schemes involved, and the Directors.
Report of the Taskforce on Pyramid Schemes
33
1.4.6 Written Submissions
The Taskforce received written memoranda and briefs from
government agencies members of the public, churches, private
pyramid initiatives and other related institutions. Written briefs were
also submitted by the parties which responded to the summons by
the Taskforce.
The written submissions contained proposed recommendations on
recovery and restitution of funds, the expectations of the investors,
lists of investors, names of directors and promoters of schemes,
court proceedings and status of court cases and other information
that was relevant to the Taskforce. (See Annex 4: List of Written
Submissions).
1.4.7 Investigations
These were conducted in order to obtain information which could
otherwise not be obtained using the aforementioned methods of data
collection. This methodology was confined mainly to the
investigation of bank accounts and tracing of assets.
1.4.8 Visits and Consultative Meetings
The Taskforce held consultations with members of the local and
provincial administrations and a host of associations. These were
necessary to allow for effective engagement with the Taskforce.
Some of the associations and bodies visited include; KACC, CBK,
MoF, LSK, CID and National Security Intelligence Services
(N.S.I.S).
1.5 Challenges and Limitations
(i) The Taskforce experienced challenges as it endeavored to fulfill its
mandate. One of the major challenges was the perception by the general
public that the recommendations of various Taskforces and
Commissions are never implemented.
Report of the Taskforce on Pyramid Schemes
34
The general public argued that the Taskforce may be a public relations
exercise where the report will be left to gather dust without due
consideration of its recommendations.
(ii) The other challenge that arose was criticism by some private initiative
groups who were dissatisfied with the manner in which the Taskforce
was constituted. They argued that the composition of the Taskforce did
not include the investors who were the worst affected by the schemes.
To this end, they challenged the ability of a government constituted
Taskforce to deliver a credible and legitimate report.
(iii) The fourth challenge related the limited time within which the
Taskforce was to complete its task vis a vis the terms of reference. Most
of the TORs were labour intensive and the time needed to
comprehensively address all the concerns was not adequate. The sheer
magnitude of the task required more time.
(iv) The Taskforce faced a huge challenge in trying to fulfill some of the
TORs due to the lengthy and complicated legal mechanisms. This
situation mainly arose as far as tracing assets and bank accounts was
concerned. The limited tenure of the Taskforce could not enable it to
conduct thorough investigations in this area.
(v) The sixth challenge faced by the Taskforce was that some institutions,
private initiatives and persons connected with pyramid schemes were
unwilling to volunteer information which may have been beneficial to
the Taskforce.
(vi) Lack of a collaborative effort from some government agencies due to
their failure to appreciate the magnitude of the pyramid schemes.
(vii) The Taskforce also faced a challenge due to the perception that it does
not have the powers to compel attendance. This may have affected the
turnout of the people and institutions summoned.
Report of the Taskforce on Pyramid Schemes
35
(viii) Finally, the Taskforce faced logistical problems due to the magnitude of
the workload. These included the transportation of various claim forms
from the respective District Co-operative Offices countrywide and
insufficient staffing at the secretariat level for registration of claims.
1.6 Organization of the Report
The report is organized into three parts and ten chapters. Part I consisting of
two chapters contains the introduction and a history of pyramid schemes.
Part II has five chapters and looks into the nature and number of pyramid
schemes in Kenya, pinpoints the masterminds of these schemes,
investigates the funds and assets held by the schemes, analyses the public
hearings, role of Government agencies and the effect the pyramid schemes
in Kenya. Part III consisting of three chapters addresses the way forward in
terms of legal reforms, public awareness and recommendations.
Report of the Taskforce on Pyramid Schemes
36
CHAPTER 2
HISTORICAL BACKGROUND
2.1 Introduction
This chapter attempts to provide a more detailed definition of the term
‘pyramid schemes’. The definition will include the concept of pyramid
schemes and the key identifiers of the schemes. The chapter also documents
a brief history to facilitate a wider understanding of pyramid schemes.
The chapter also seeks to distinguish pyramid schemes and Multi-level
Marketing (MLM) or Network Marketing. As will be discussed later in the
chapter, some pyramid schemes attempted to present themselves as MLMs.
To remove this confusion, the chapter analyses the salient features of
pyramid schemes and MLMs. It also advises potential investors on how to
read between the lines and distinguish between the two.
Finally, the chapter traces the emergence of pyramid schemes in Kenya. A
discussion into this issue cannot be complete before analyzing the factors
that contributed to the emergence and spread of these schemes in Kenya.
2.2 Definition and Historical Background of Pyramid Schemes.
Pyramid schemes are unregulated financial investments that involve an
operation whereby a person or institution holds out a promise to another
person that upon payment of a specific sum of money, that person shall
become entitled to receive a sum of money or an amount of valuable
security which, given all commercial considerations, is greater than the
money or valuable security invested.
The schemes are linked to Charles Ponzi an Italian who was born in Italy in
1882 but later immigrated to the United States in 1903. Pyramid schemes
are dependent on attracting a growing number of new entrants whose funds
are used to pay attractive returns to previous investors.
Report of the Taskforce on Pyramid Schemes
37
These are schemes in which a hierarchy is created by new entrants joining
under those who joined previously. Pyramid schemes rely on the continual
recruitment of fresh or new investors in order to continue operating.
The idea behind pyramid schemes is that the investor makes one payment
but is promised to somehow receive exponential benefits. Success of the
scheme rests solely on the exponential growth of new members hence the
name ‘Pyramid’ indicating the increasing population at each successive
layer.
The Taskforce also noted that pyramid schemes may distinguish themselves
in the form of chain letters. A chain letter is merely a letter, an e-mail
message or some other communication which asks the recipient to send
copies of it to several other people. Chain letters are not illegal per se but
can be very annoying and wasteful of whatever medium is used to carry
them.
However, when a chain letter asks the recipient to send money to people
through whom the letter passed before, with the promise that the recipient
will receive money from those that the letter reaches after he sends it, then
it becomes a form of a pyramid schemes.
2.3 Pyramid and Multi-Level Marketing.
Multi-level Marketing (MLM) also known as Network Marketing is a
method of selling products directly to consumers. Products are sold through
a network of distributors or salespersons set up to resemble a pyramid
Because of this pyramidal structure, MLM companies may sometimes be
mistaken for pyramid schemes.
The Taskforce has identified features to distinguish pyramid schemes and
MLMs as follows;
(i) The emphasis of pyramid schemes is on recruitment of members
while MLMs focus on the sale of products and services that have
some inherent value.
Report of the Taskforce on Pyramid Schemes
38
(ii) The commissions earned from MLMs are based on the sales of
products and services. Pyramid schemes participators are paid
primarily using money received from new investors.
(iii) MLMs are sustainable as they are based on the continued sale of
goods or services to consumers. Recruitment of new members is
secondary. Pyramid schemes are doomed to collapse once
recruitment of new members ceases.
The Taskforce established that there are a number of MLMs which operate
in Kenya. These include Forever Living Products, which specializes in
skincare products and supplements, GNLD International and Tianshi
Health products which deal with health products, Angel Fashion
Accessories that stocks jewellery, bags, watches and wallets and Oriflame.
These companies have been in operation for a long time and have a huge
client base
2.4 The Kenyan Situation.
The Kenyan landscape was not spared from the emergence of pyramid
schemes. In an attempt to attract investors, the schemes operated under the
guise of registered legal entities or MLMs.
The Kenya Winners Circle Inc. Co. Ltd2 was a pyramid scheme which hit
Kenya in 1998. The nature of its business was to purportedly sell products
such as cruise ship tickets and holiday and tour packages at discounted
prices. Each package promised a rewarding financial return. As a marketing
strategy, some early investors were paid but barely one year after it was
launched, the company wound up resulting in huge losses to the investors.
In 2005, a company called Kenya Akiba Micro Finance Ltd was the subject
of complaints from members of the public who were enticed into depositing
money with the institution in the pretext that they would be advanced loans.
2 The Kenya Winners Circle Inc. Ltd was registered as a Kenyan subsidiary of the Winners Circle Inc. which had its headquarters in the U.S.A. The company was launched in Nakuru on the 30th March 1998.
Report of the Taskforce on Pyramid Schemes
39
The company was receiving deposits from members of the public in
contravention of the Banking Act.3 The company was only licensed to
conduct Hire Purchase business but it proceeded to take deposits from
members of the public in contravention of the said Act.
In 2006 and 2007 there was a proliferation of schemes in the country. This
may have been attributed to the boom in the stock market and a multiplicity
of other factors discussed later in this chapter. In the stock market, investors
were making huge profits through high share prices and Initial Public
Offers. The promoters of the schemes took advantage to mislead victims
that the returns were being obtained from the stock market and off-shore
investments.
There are cases where pyramid schemes had disguised themselves as
MLMs. One instance involved a company called Better Life where
members would pay Kshs. 2,500 as registration fee and were required to
recruit other members who would pay a similar amount for purposes of
sales of fictitious or non existent products.
Most of the schemes collapsed in the last quarter of 2007. This led to losses
running into billions of shillings and other impacts as has been discussed
elsewhere in the report.
2.5 Factors responsible for the spread of pyramid schemes in Kenya
Pyramid schemes gained a lot of popularity and quickly spread amongst the
populace who could not resist the allure of quick returns. The euphoria was
further fuelled by the success stories of investors who had ‘harvested’
which spread quickly and acted as a marketing tool for the schemers.
3 Section 16 (cap 488) prohibits any unauthorized persons from soliciting deposits from the general
public.
Report of the Taskforce on Pyramid Schemes
40
The reasons for the spread of the schemes have been categorized as follows;
2.5.1 Economic Factors.
The Taskforce noted that investors were keen to take advantage of
opportunities that promise quick economic gain. With the increase in
the poverty levels across the country more and more Kenyans were
willing to take a chance with these schemes either out of desperation
or as a means of accumulating more wealth. As Sophie Kiwelu
pointed out4;
“As poverty levels continue to surge in Kenya where the
majority is living on less than a dollar per day, many are
tempted to join schemes that will help them achieve financial
freedom. On the other hand, Kenyans frustrated with long
queues in banks and peanut interest rates have been
withdrawing their savings in banks and even going further to
sell their shares in order to invest in what is known as
pyramid and merry-go-round schemes. These schemes
promise very high interest rates of up to 10 to 20 per cent a
month compared to bank savings whose returns is 5 per cent
or less per year. Moreover, others offer twice the principal
amount invested within five weeks. These deals being too
good to resist, many people took the risk hoping to make
money and improve their lifestyles.”
During the Taskforce public hearings held in various venues5
between 24th February 2009 and 2nd April 2009, revelations were
made by investors on how they deposited their money in the
schemes with the belief that they would be financially endowed
within a short period of time.
The investors recounted how the allure of the schemes was
irresistible due to their desire to improve their lives economically.
4 Sophie Kiwelu: Kenyan Politics and the Pyramid Saga.
5 Nairobi, Meru, Embu, Nyeri, Muranga, Thika, Kisii, Kakamega, Bungoma, Kisumu, Nakuru, Eldoret, Mombasa and Malindi.
Report of the Taskforce on Pyramid Schemes
41
The promoters of these schemes were made to believe that the
schemes were established in an effort to assist the poor.
The appetite for investments is proof of a strong desire by the low
income earners to participate in financial markets with appropriate
products. However it should be noted that the continued engagement
with unregulated informal schemes may lead to loss of savings and
earnings.
2.5.2 Religious Factors
Kenya is a religious country which is predominantly Christian. The
Presbyterian Church of East Africa (PCEA), Anglican Church,
Roman Catholic Church, African Inland Church (AIC) and the
Seventh Day Adventists (SDA) constitute the mainstream Christian
churches in Kenya. In addition there are a number of other
evangelical and Pentecostal churches.
The Taskforce notes that the religious approach by the schemes
targeted Christians. This is attributed to the fact that the Muslim
faith does not allow the faithful to profit by way of ‘earning interest’
on money.
Documented cases were recorded during the public hearings where
religious leaders were used to recruit investors. As an incentive some
were promised commissions based on the number of investors
recruited. Biblical teachings and Christian literature were used as a
tool of convincing the religious leaders that the schemes would
benefit members both economically and in their Christian faith.
The Taskforce wishes to highlight that the schemes took advantage
of the ‘prosperity gospel’ by the Pentecostal/Evangelical churches.
Many investors were duped into joining the schemes after being
convinced by their religious leaders that they would prosper.
Examples of schemes that used the religious approach were CLIP
through sale of Christian literature and DECI where investors were
convinced that they were planting a ‘seed.’
Report of the Taskforce on Pyramid Schemes
42
It is worth noting that although the religious leaders were mostly
from Pentecostal/evangelical churches, the investors were drawn
from both mainstream and Pentecostal churches.
2.5.3 Legislative Factors
Kenya does not have a legal regime expressly outlawing pyramid
schemes. This vacuum provided a forum which led to a proliferation
of these schemes. In comparison, other jurisdictions outlaw these
schemes. These include United States of America, the United
Kingdom, France, Germany, Canada, Romania, Colombia, Malaysia,
Norway, Bulgaria, Australia, New Zealand, Japan, Italy, Nepal,
Philippines, South Africa, Singapore, Sri Lanka, Thailand, Iran,
China and Mexico. It is notable that most of these countries which
have enacted laws against pyramid schemes have had incidences of
pyramid schemes related activities in the past.
The schemes were presented to the investors as legal entities.
Certificates were conspicuously displayed to the unsuspecting
investors. In the course of the public hearings, many pastors and
investors argued that they were persuaded to invest by the presence
of registration certificates. The presence of government security
agents and the local administration during functions organized by the
schemes gave the reassurance that the schemes were operating with
the knowledge of the Government.
The effect of lack of a legal regime was compounded by inadequate
supervision of the schemes which had been registered under
different legal regimes. However it is noted that lack of adequate
capacity and resources may have contributed to the inadequate
supervision.
Report of the Taskforce on Pyramid Schemes
43
2.5.4 Social Factors
Social factors contributing to the spread of the schemes were diverse
and ranged from greed, lack of awareness to trust.
The majority of persons who participated out of greed were aware
that the returns were beyond what can be achieved through
traditional investments but were nevertheless attracted by the quick
money. They participated hoping that the scams will last long
enough for them to make a profit. However the end result is that a
few people walked away with a lot of money while the majority of
investors suffered losses.
Pyramid schemes were presented attractively as “investment clubs”
or “gift programs.” The investors were duped that the schemes were
savings plans, multi level marketing, merry-go-rounds and revolving
funds investments. The investors flocked to these informal
investment schemes without the knowledge that they were falling
prey to pyramids.
The pyramid schemes targeted close knit groups such as religious
and social groups, retirees and retrenchees. There is a lot of trust and
an idea introduced by a member will be easily adopted by the rest.
The members in these groups are also under pressure to participate
in any activity adopted by the members so that the group may
remain united.
The element of trust was also evidenced by investors who joined the
schemes on the basis of personal relationships like relatives, friends
and religious leaders. These investors relied more on emotion than
reason.
2.5.5 Co-operative Factors
A number of institutions that were carrying out pyramid scheme
related activities transformed into Cooperative Societies on realizing
that they were not sustainable and were facing apparent collapse.
Report of the Taskforce on Pyramid Schemes
44
Upon registration as Cooperative Societies these institutions
acquired a legal status which they used to lure unsuspecting Kenyans
to invest with them.
This change of status from pyramid schemes to cooperative societies
registered under the Cooperative Societies Act gave the public the
assurance that they were dealing with legitimate organizations but
the business carried out by the new outfits was in contravention of
the Cooperative principles.
Report of the Taskforce on Pyramid Schemes
45
PART 2
PYRAMID SCHEMES: A DETAILED
ANALYSIS OF THE KENYAN
PERSPECTIVE
Report of the Taskforce on Pyramid Schemes
46
Report of the Taskforce on Pyramid Schemes
47
CHAPTER 3
THE NATURE OF PYRAMID SCHEMES IN KENYA
3.1 Introduction
The information contained in this chapter in regard to the number of
pyramid schemes and their financial indebtedness to investors was obtained
via registration of claims. Using this method, registration centers were
opened in all operational District Co-operative Offices (DCOs)
countrywide where an elaborate data recording format was designed to
capture the particulars of the investor, amounts invested and in which
scheme and the particulars of directors.
The chapter further analyses the modes of operation of the schemes. It also
contains information on the particulars of directors who were the
masterminds of the schemes. Finally, it seeks to look into the role of Private
Scheme Victims Initiatives.
3.1.1 Legal Nature
It will be appreciated that in order to operate the schemes attempted
to disguise themselves as legal entities to avoid arousing suspicion.
To the public they were genuine outfits out to promote the economic
and social wellbeing of the investors. The Taskforce was able to
classify the legal nature as follows;
(i) Savings and Credit Societies- these are institutions registered
under the Co-operative Societies Act
(ii) Non Governmental Organizations (NGOs)
(iii) Companies- registered under the Companies Act
(iv) Sole Proprietorship- these are business names registered
under the Registration of Business Names Act.
(v) Welfare Organizations- these organizations are registered
under the Ministry for Gender and Social Services.
Report of the Taskforce on Pyramid Schemes
48
Some of the schemes were registered under different legal regimes but
operated by the same people. These schemes that were concurrently
registered as Saccos and Companies include;
(i) CLIP Investment Sacco Society Ltd and Kings Script
Publishers Ltd.
(ii) DECI and Tujibebe Sacco Society Ltd
(iii) Jitegemee Entrepreneurs Sacco Ltd and Mont Blanc Afrique
Ltd
(iv) Kenya Business Community Sacco and Kenya Multipurpose
Business Ltd
(v) Sasanet Investment Sacco Society and Sasanet Investment
Ltd.
3.1.2 Operational Nature
The operational nature of the schemes varied. The distinguishing
feature of their operational methods is that they focused on the
recruitment of members. This was because the higher the numbers,
the more successful the scheme was perceived to be.
3.1.2.1. Branch Networks
The major pyramid schemes started their operations in
Nairobi and later established branch networks in other towns.
Depending on the magnitude of investors and projected
patronage, some pyramid schemes opened branches as far
down as District and Divisional offices.
Branches were operated to cater for the ever growing number
of investors. Mostly the branches were manned by center
managers who were assisted by a network of promoters in
recruiting more investors.
Report of the Taskforce on Pyramid Schemes
49
3.1.2.2 Return on Investment
The major reason why pyramid schemes were unique and
why many Kenyan invested in them was the abnormally high
return on investment over a very short period.
To lure investors, the following approaches were used;
(i) Guaranteed returns of between 2.5 times and 3 times of
the principal invested within a period of a few weeks.
(ii) Payment of monthly interest at the rates of 10-20% and
thereafter refund of the principal investment after expiry
of the contractual period.
(iii) Incentives which included offers to pay school fees and
advances of loan on attractive terms to purchase
vehicles.
3.1.2.3 Promotion strategy
Most pyramid schemes especially the major ones had a well
structured marketing/promotion strategy. Policy decisions
were made by the directors while the execution was done by
the managers and marketers. In the context of the major
pyramid schemes, marketing which basically meant
recruitment of investors was done through an elaborate
network of promoters.
3.1.2.4. Legal Contract
A number of pyramid schemes engaged lawyers to draw
contract agreements between the investor and the pyramid
scheme. The agreement provided an assurance on the
promised returns thus making the whole transactions look
legitimate. (See Annex 23-Sample of Contract Agreements)
Report of the Taskforce on Pyramid Schemes
50
3.1.2.5. Organizational Structure
The organizational structure of the various schemes may have
varied depending on the size and coverage of the particular
scheme. However the Taskforce noted that most of the
scheme had a standard organizational structure which guided
their operations.
The following is an expression of this structure;
The Directors were the policy makers. The Chief Executive Officers (CEO)
issued directives on the day to day running of the schemes. The Director
and the CEOs were the main signatories of the bank accounts.
The Centre managers were in charge of the day to day running of the
branches and remitting the funds received to the head offices. The
promoters were in charge of the recruitment of new investors and were paid
on a commission basis.
DIRECTORS
C.E.O
CENTRE MANAGER
PROMOTERS PROMOTERS PROMOTERS
CENTRE MANAGER
PROMOTERS
Report of the Taskforce on Pyramid Schemes
51
The examples below express the mode of operation of selected pyramid
schemes.
(i) Kenya Business Community Co-operative Society
a) Registration- Sacco Society and affiliate Company (Kenya
Multipurpose Ltd)
b) Membership- local investors
c) Recruitment- through a marketing team
d) Coverage- countrywide
e) Network- Headquarter in Nairobi with 14 branches spread in
Nairobi, Coast, Rift Valley, Eastern, Nyanza and Coast.
(ii) CLIP Investment Co-operative Society
a) Registration- Sacco Society and affiliate company (Kings
Script Publishers Ltd)
b) Membership- open to investors
c) Objects- to promote the economic welfare of members
d) Coverage- countrywide but mostly in Nairobi and environs
e) Returns- Investment amount attracted interest at the rate of
10% p.m for five months. On the 6th month principal amount
is returned.
(iii) DECI
a) Registration- Limited liability company
b) Later registered as Tujibebe Sacco
c) Membership- targeted low income people
d) Recruitment- through the church and a network of promoters
e) Coverage- countrywide with headquarters in Nairobi.
f) Returns- investors contribute to a ‘revolving fund’. Investors
are classified into groups of 8 to make a series of 64. The 64
‘members’ are put in a revolving system that facilitates the
payment of all members of that group.
Report of the Taskforce on Pyramid Schemes
52
3.2 Number of Pyramid Schemes in Kenya
At the close of the registration exercise 270 institutions were identified as
pyramid schemes or pyramid related schemes. The list was drawn from
investors’ data captured all over the country. (See Annex 5: List of
Pyramid Schemes in Kenya and Amount invested)
A sampled list of the top twelve institutions in terms of amount invested
were;
NAME OF SCHEME NUMBER OF
INVESTORS
AMOUNT
1 DECI 93,485 2,405,518,832.00
2 Clip Investments Sacco Ltd 5,846 1,993,866,422.00
3 Kenya Business Community Sacco Ltd 921 780,698,218.00
4 Sasanet Investment Sacco Ltd 629 739,948,412.00
5 Jitegemee Investment Sacco Ltd 3,828 494,401,600.00
6 Circuit Investment 1,392 348,943,103.00
7 Family In Need Organisation (FINO) 4,580 157,280,553.00
8 Global Entreprenership 9,206 139,006,632.00
9 Spell Investment 544 120,326,860.00
10 Mont Blanq Afrique 774 82,834,000.00
11 Amity Investment 979 81,838,656.00
12 Smart Welfare 1,125 68,903,070.00
Totals 123,309 7,413,566,358.00
3.3 Directors of Pyramid Schemes
These were the executive administrators of the schemes. They were in
charge of policy matters and the day to day running of the schemes. The
directors were the major benefactors of the scheme and signatories to the
bank accounts.
The list of directors is based on searches conducted by the Taskforce at the
Ministry of Co-operative Development and Marketing MoCD&M, NGO
Coordination Board and the Registrar of Companies. It is not conclusive as
the Taskforce only relied on authenticated searches obtained from the three
institutions. (See Annex 6: List of directors).
Report of the Taskforce on Pyramid Schemes
53
In some cases, the Taskforce could not establish from the information
availed by the victims under which legal regime a scheme was registered to
enable it make a search at the appropriate government office.
The search conducted revealed the following;
Mode of Registration Number
Companies 19
Co-operative Societies 17
Businesses 19
NGOs 3
Total 58
The searches had not been finalized since not all files had been traced by
the time the tenure of the Taskforce ended.
Report of the Taskforce on Pyramid Schemes
54
The key directors/proprietors/officials of top twelve pyramid schemes were;
INSTITUTION DIRECTORS/PROPRIETORS/OFFICIALS DECI George Odinga Donde
Tujibebe Sacco George Odinga Donde - Chairman
Godfrey Kamanda Gakure (Bishop)
Ann Zawadi - (Advocate)
Ambassador Mary Odinga
CLIP Investment Cooperative Soc. ltd
Peter Ndakwe - Chairman Meshack Gachago - V/C Didycus Shyamwama - Treasurer
Kenya business community Sacco, Ltd.
Francis Omurwa- Chairman
Angelo Mung’ri M’inoti - V/Chairman
Elias Kathurima Rutere - Treasurer
Barnabas Mwangangi - Secretary
Sasanet Investment cooperative
Michael Chege - Chairman Dorothy Wangui - Hon. Secretary Ronald Ouma - Treasurer Job Nyamao - V/chairman
Sasanet ltd. Michael Chege and Sammy Gitau Jitegemee Sacco/ Mont Blanq Afrique Ltd
Jackson Kinyoho Mburu - Chairman Patrick Nyoike Maina - Member Florence Wambui Busiega - Vice Chairman James Mate Njeru - Treasurer Elizabeth Ngoiri Mwangi - Secretary
Family in Need Organization (FINO)
John Leonard Wanyoike Winfred Gatakaa Kiria Rahab Maimutie Wanuoike
Global Entrepreneurship
Patrick Ayisi Ingot - Chairman
Christopher Mweresa Livunda - V/Chairman
Florence Nzoeva Mulama - Secretary
Edward Murithi Matu - Treasurer
Spell investment Boniface Anderson Ngosia - Chairman Faith Ayoti - V/Chairman Consolata Nabwire - Secretary Eunice Negesa - Treasurer
Amity Investment Charles Murithi Kirigua
Festus Kizisa - Secretary
Report of the Taskforce on Pyramid Schemes
55
3.4 Financial Indebtedness to Investors.
The financial indebtedness of the schemes to investors compiled at the
close of the registration exercise was Kshs. Kshs.8,178,737,402, from
148,784 investors. (See Annex 5: list of pyramid schemes and amount
invested)
Although the exercise was largely successful the figures expressed above
are not conclusive due to the following reasons;
(i) At the close of registration exercise, many investors were still
streaming to the various registration centers
(ii) Some investors failed to register as they had already registered
with Private Pyramid Initiatives. In addition some initiatives
advised investors not to register with the Taskforce.
(iii) Related to the above, there were investors under the
misconception that previous registration with the Private Pyramid
Initiatives was sufficient, despite the Taskforce advising and
encouraging all victims to register with it.
(iv) Prominent personalities who participated in the schemes may
have failed to register because of their social status in society.
(v) Some investors were unable to register due to loss of documents
during the 2008 post election violence.
(vi) Despite the publicity by the Taskforce, some investors were not
aware of the registration processes.
(vii) Some victims appeared after close of registration exercise
claiming the period given was too short.
Report of the Taskforce on Pyramid Schemes
56
Recommendation
A Pyramid Scheme Information Center be set up where victims who have
not registered their claims can get opportunity to do so, to enable them be
considered should recovery be made from the property of
directors/proprietors’.
The Pie-charts below present a graphical representation of the data gathered
during the registration exercise.
Report of the Taskforce on Pyramid Schemes
57
Figure 1: Number of pyramid schemes per province
Source: Registration of claims data.
Notes
(i) Nairobi province recorded the highest number of schemes with North
Eastern being the least affected.
(ii) The figures represented in the chart indicate the number of schemes in
a particular province. It is to be noted that some of the schemes
operated in more than one province.
Report of the Taskforce on Pyramid Schemes
58
Figure 2: Number of Investors per province
Source: Registration of Claims data
Notes:
(i) Pyramid schemes recruited investors from all parts of the country
but the epicenter was Nairobi province.
(ii) Nairobi province with the highest number of schemes also
experienced the highest number of investors.
(iii) North Eastern province was the least affected by the schemes
recording 15 investors in one scheme.
Report of the Taskforce on Pyramid Schemes
59
Figure 3: Amounts Invested per province
Source: Registration of Claims data.
Notes:
(i). More than half of the amount invested in schemes in the country was
recorded in Nairobi. This is attributed to high turnover of investors
who invested heavily in the schemes that operated in Nairobi.
(ii). The high turnover may be attributed to the fact that most schemes
started in Nairobi before spreading to other areas. Further being a
metropolitan city it has a high number of people with disposable
incomes
Report of the Taskforce on Pyramid Schemes
60
.Figure 4: Gender representation of investors (Nairobi province)
Source: Registration of Claims data.
Notes:
From a sample of 56,234 victims drawn from Nairobi province, the female
investors were more than the male.
Report of the Taskforce on Pyramid Schemes
61
Figure 5: Amount invested as per gender
Source: Registration of Claims data.
Notes:
(i) The data is drawn from investors in Nairobi only.
(ii) From a sample of 56,234 investors from Nairobi, it was observed that the
number of women investors was higher. It can therefore be deduced that
women were more prone to investing in pyramid schemes than men.
(iii) Women folk are more engaged in formal and informal socio-economic
organizations which offered a good opportunity for promoters of pyramid
schemes to access them easily.
(iv) Women by nature aspire to improve the economic status of their families.
Pyramid schemes offered an attractive opportunity to meet this aspiration.
Report of the Taskforce on Pyramid Schemes
62
3.5 Pyramid Schemes Victims Initiatives
The collapse of the schemes was a precursor to the problems of the
investors. Lifetime savings disappeared overnight and dreams were
shattered. Many desperate investors rushed to government agencies seeking
redress. Others filed suits, filed complaints and wrote memorandum to the
government. In the end, the investors were a frustrated lot venting their
anger on the government accusing it of inaction, complacency and lack of
sensitivity to their plight.
It is in this light that the victims came together and formed pyramid
schemes Victims Initiative groups. The initiatives were mandated to seek
avenues for recovery of funds. The initiatives were the voices of the
investors and had grassroots support of the victims. They stressed the fact
that investors were keen in the recovery of invested funds. They were not
interested in court processes that were considered lengthy and laborious.
These initiatives served as pressure groups and spurred the government to
action. As a result of the outcry from the investors, the government through
the MoCD&M appointed a Taskforce to investigate pyramid schemes and
make recommendations.
Some of the activities conducted by the initiatives before the constitution of
the Taskforce included registration of investors and preliminary
investigations to establish the perpetrators of the schemes. While the
Taskforce notes the efforts of these schemes, it wishes to emphasize that it
carried out an independent exercise of registration of claims.
Some of the initiatives sought registration with the relevant government
agencies. A sample of the initiatives is as follows;
Report of the Taskforce on Pyramid Schemes
63
3.5.1. National Pyramid Victims Initiative
The initiative was registered with the Ministry of Social Services
with the following office bearers;
(i) Pastor Samuel Kariuki Chairman
(ii) Bishop W. Mamboleo Secretary
(iii) Eliud Thuku Secretary
(iv) Joseph Kinyua C.E.O
(v) Bishop Kinyanjui Rep- Rift Valley
The initiative held an interview with the Taskforce on 12th February
2009 where the following issues were highlighted;
(i) That the initiative had conducted a registration exercise of
investors. They submitted what was alleged to be a list of
investors.
(ii) They claimed to have registered victims who had invested a
total of Kshs. 3.4b.
(iii) The initiative emphasized that they were not interested in
litigation and court processes to pursue their claims.
(iv) They submitted that they did not expect much from the
Taskforce but would tolerate it until it released its findings.
They had expected to be appointed in the Taskforce
Arising from the foregoing, the Taskforce wishes to note as follows;
(i). That the 3.4b figure by the initiative approximated to be 10% of
the total investment could have led to the speculation that a total
of Kshs. 34b was lost in the schemes.
(ii). That as a result of lack of confidence in the Taskforce, the
initiative orchestrated activities meant to derail the work of the
Taskforce. This included attempted disruption of Nairobi public
Report of the Taskforce on Pyramid Schemes
64
hearing, advising investors not to register claims with the
Taskforce and holding a parallel meeting at Meru.
3.5.2. Mt. Kenya pyramid schemes Initiative.
This was a splinter group of the National pyramid schemes Initiative
covering mainly the Mt. Kenya region. It was not registered with any
government agency. The office bearers were;
(i) Rev. Margaret Prem Chairlady
(ii). Bishop Erastus Njoroge Patron
(iii) Benson Kiamba Secretary
The initiative mainly represented investors from specific schemes
namely; DECI, Sasanet, Clip, Fino, Pesanet, Kenya Business Sacco
Ltd, Global, Circuit, Jitegemee and Sylvia Investments.
The following were the salient points of an interview held between
the Taskforce and the initiative on the 13th March 2009;
(i). That the initiative had made efforts to seek redress from
top government representatives and M.Ps from the Mt.
Kenya region but their efforts had been fruitless so far.
(ii). They emphasized that the pyramid schemes saga will
never be left to rest until the investors recover their
funds.
(iii). That they had registered Kshs. 919 M from DECI
investors in the Mt. Kenya region.
(iv). They explained in detail the role of the church and its
leaders in the recruitment of investors.
(v). They cautioned the Taskforce that investors may take the
law into their own hands when they run out of patience.
Report of the Taskforce on Pyramid Schemes
65
3.5.3. Other Initiative Groups
The Taskforce captured the case of some investors who came
together and were represented by advocates. Two initiatives of this
kind were noted;
(i) Mr. Kanyangi of Kanyangi & Co. Advocates- He acted for
victims of various schemes which included Jitegemee Sacco
and Spell Investment. It carried out investigations and pursued
the loss of investors’ money with the government.
(ii) Njoroge Wachira trading as Njoroge Wachira & Co.
Advocates- the advocate had filed a case on behalf of 239
investors. He had obtained judgment in favour the investors but
was unable to execute as he could not trace the directors.
Report of the Taskforce on Pyramid Schemes
66
CHAPTER 4
PUBLIC HEARINGS
4.1 Introduction
One of the activities scheduled by the Taskforce in order to meet the
requirements of its mandate was the Public hearing meetings. The objective
of these hearings was to articulate the terms of reference of the Taskforce to
the public and get firsthand information and experiences of the pyramid
schemes victims. The fora also accorded the Taskforce interactive sessions
with the victims where the feelings and views of the victims were captured.
It is also offered the victims an opportunity to ventilate their experience.
The Taskforce visited all the provinces except North Eastern. Some
selected major towns where the impact of the pyramid schemes was
assessed to be very high were also visited as per the programme below:
DATE VENUE TIME
Nairobi Province
24-26th February, 2009 Railway club 10.00 a.m.
Eastern Province
3rd – 4th March, 2009 Meru- Kamunde Hall 10.00 a.m.
5th March, 2009 Embu – Emco Hall 10.00 a.m.
Central Province
10/3/09 Nyeri – YMCA 10.00 a.m.
11/3/09 Murang’a – Mugama union Hall 10.00 a.m.
12/3/09 Thika St. Patrick Catholic Hall 10.00 a.m.
Nyanza/Western
17/3/09 Kisii Union Grounds 10.00 a.m.
18/3/09 Kakamega – Kakamega County
Council Hall
10.00 a.m.
19/3/09 Bungoma – Bungoma County
Council Hall
10.00 a.m.
20/3/09 Kisumu – Naselika Hotel 10.00 a.m.
Rift Valley Province
25/3/09 Nakuru – ACK Hall 10.00 a.m.
26/3/09 Eldoret – Eldoret Municipal Hall 10.00 a.m.
Coast Province
31/3/09 Mombasa – Woget Centre 10.00 a.m.
2nd April Malindi – County Council 10.00 a.m.
Report of the Taskforce on Pyramid Schemes
67
4.2 Issues raised by Provincial Administration
During the public hearings the Taskforce had the opportunity to meet the
respective Provincial Administration Officers where the following issues
featured
4.2.1 Nairobi Province
The Taskforce met the deputy Provincial Commissioner (PC). Mr.
Mbaruka who reckoned that it was an opportune time for the
government to have intervened. He revealed that Nairobi was the
epicenter of pyramid schemes. He cautioned that the Taskforce will
face challenges as public anxiety and expectation were very high.
He however assured the Taskforce of support from his office
especially on security during the public hearings.
4.2.2 Meru
The public hearing was planned to cover the districts of the larger
Meru region. The District Comissioner(DC) Mr. Ogallo informed
the Taskforce of the activities of the pyramid schemes initiatives that
were very active in the area. He regretted that many Kenyans fell
prey to the schemes rendering some of them destitute. He attributed
the high incidence of pyramid schemes in the region to the lucrative
business activities in the region and prominent local personalities
who promoted the schemes.
4.2.3 Embu
This was planned to cover the larger Embu districts and surrounding
areas. The Taskforce held discussions with the Deputy PC Mr. S.
Ongayo who had just reported to the station.
He gave a very inspiring speech which dwelt on the origin of the
pyramid schemes and the role played by Provincial Administration
in discouraging the public from patronizing the schemes.
Report of the Taskforce on Pyramid Schemes
68
He attributed the entry of pyramid schemes to ignorance and culture
and cited cases in Central Province where efforts by the Provincial
Administration to discourage people from investing in pyramid
schemes were met with hostility especially from church leaders. He
was however positive that the Taskforce will deliver on its mandate.
4.2.4 Nyeri
This hearing was expected to bring together investors from
Nyandarua Kirinyaga, Nyeri and its environs.
The Taskforce met PC Central Mr. Rugut who shared his
experiences on pyramid schemes. He cited DECI as the main player
in Central Province. He expressed that in Mt. Kenya Region, DECI
may have collected as much as Kshs.300m.
In an effort to dissuade the public against the pyramid schemes,
public barazas were organized. He reported that the church was
fully involved in the recruitment of investors and cited a
demonstration that was held against those who were against DECI.
Demonstrations were also planned when CBK issued the cautionary
statement against pyramid schemes.
4.2.5 Muranga
The Taskforce held discussions with the DC Mr. Natembea where
matters pertaining to pyramid schemes were highlighted. The DC
also reported that the District was adversely affected as most of the
victims are peasant farmers with minimal earnings. The negative
impact was aggravated by declining returns from coffee which is the
major economic activity in the district. A report detailing the
registration of investors was tabled by the local District Cooperative
Officer (DC).
Report of the Taskforce on Pyramid Schemes
69
4.2.6 Thika
During the courtesy call with the D.C. Mr. Wilson Njega it was
reported that majority of Thika residents had registered in Nairobi
where most commute daily to work.
Thika however expected a high turnout due to the Nairobi influence
where most of the pyramid schemes started.
He attributed the emergence of the pyramid schemes to the
entrepreneurship nature of Kenyans. He advised the Taskforce to
ensure that the public is educated on pyramid schemes menace. He
cited Tanzania where there is a legal framework regarding pyramid
schemes. He was optimistic that the Taskforce will deliver.
4.2.7 Kisii
The Taskforce met the Ag. DC Mr. Ngugi wa Thundo on behalf of
the DC. The Ag. DC reported that the pyramid schemes affected
both the rich and the poor. He assured the Taskforce on security.
4.2.8 Kakamega
The Taskforce paid a courtesy call on the Deputy PC Ms. Clare
Omolo who wished the Taskforce well in its pursuit of the promoters
of the pyramid schemes.
She reported that Western Province with a poverty level of between
60% – 62% was mostly affected by the pyramid schemes. The
poverty problem was aggravated by the effect the pyramid schemes
had on the Saccos. She said that Saccos were seen as the vehicle for
improving the welfare of the people but when some co-operatives
were seen as pyramid schemes, the hopes of the people was
shattered. She was very hopeful that with the expertise within the
Taskforce and political goodwill the Taskforce will succeed in the
endeavour to address the plight of the victims.
Report of the Taskforce on Pyramid Schemes
70
4.2.9 Bungoma
The local DC Mr. Nyagwanda informed the Taskforce that the larger
Bungoma was highly affected by the pyramid schemes. He cited the
involvement of the church as having contributed to the high number
of victims in Bungoma.
4.2.10 Kisumu
Due to earlier engagements the PC Nyanza Mr. Olando was unable
to meet the Taskforce. However he had made security arrangements
through the local Provincial Administration.
4.2.11 Nakuru
The Taskforce met Deputy P.C Mr. J. Kimiywi, who attributed the
spread of pyramid schemes to ignorance and greed. He explained
how Rift Valley Province suffered most since the political crisis of
2007/08 met people who were already impoverished by the pyramid
schemes.
He said the expectations from the investors was high and wished the
Taskforce luck. He noted that there was a high concentration of
pyramid schemes in Nakuru where the church played a critical role
in recruitment. He suggested that a law should be enacted to check
on pyramid schemes and at the same time create awareness to the
ignorant Kenyans.
4.2.12 Eldoret
The Taskforce met the local D.C. Mr. Leonard Ngaluma who
attributed the emergence of pyramid schemes to poverty, ignorance
and greed. He thanked the government for appointing the Taskforce.
Report of the Taskforce on Pyramid Schemes
71
4.2.13 Mombasa
The Taskforce held discussions with the P.C. Mr. Ernest Munyi who
commended the Taskforce for visiting Coast Province. He stressed
on the importance of public awareness using the media and public
barazas. He said collaboration between public and provincial
administrations ensured there is transparency in the province.
4.2.14 Malindi
The Taskforce held discussions with the D.C. Mr. Arthur Mugira
who reported that Malindi like any other urban centre had its share
of pyramid schemes effect.
He challenged the Taskforce to educate the public on disadvantages
of pyramid schemes while acknowledging that the Taskforce had a
challenging task in tracing the funds invented with the schemes. He
cautioned Kenyans against investing in institutions without verifying
their credibility.
4.3 Concerns raised during the public hearing
Issues raised during the public hearings differed from one area to another.
However the following were the common issues that were recorded by the
Taskforce;
(i) The church played a key role in influencing their members to invest
in pyramid schemes.
(ii) The Taskforce should recommend the compensation of pyramid
schemes victims by the government.
(iii) The government should educate Kenyans on investments.
(iv) The investors prayed that the Taskforce should not be disbanded
before the investors are compensated.
Report of the Taskforce on Pyramid Schemes
72
(v) Government commissions and Taskforces have in the past lost
public trust due to non-implementation of recommendations.
(vi) Members of the public suspected that pyramid money was meant for
the 2007 election campaigns.
(vii) Marketing strategies employed by some of the pyramid schemes
appealed more to emotions and not reason.
(viii) Most investors are no longer interested in pursuing their claims
through the court process. They would wish the government to
refund them their money within a specified period.
(ix) If the government fails to refund their investments, some investors
said they are ready to take drastic measures against those behind the
pyramid schemes.
(x) The government should consider compensating those who have died
due to depression arising from pyramid schemes related depression.
(xi) Some prominent Kenyans in the public and private sector were
mentioned by investors.
(See Annex 24: Records of public hearings)
4.4 Taskforce Observations
During the successful public hearings the Taskforce observed the
following:
(i) The investors had very high regard for the Taskforce. Their
expectation was that they will be refunded their money.
(ii) The pyramid schemes victims’ initiative enjoyed big support in most
of the areas especially in Nairobi, Mt Kenya region and Rift Valley.
Report of the Taskforce on Pyramid Schemes
73
(iii) Kenyans are very enterprising. Whenever there is an opportunity to
make an extra shilling the rich and poor will not hesitate to try their
luck.
(iv) There is a lot of ignorance on investments amongst most of the
investors. Marketing strategies employed by the promoters were
taken as gospel truth despite being unrealistic.
(v) Pyramid schemes took advantage of the high poverty levels and
ignorance in the country to lure unsuspecting Kenyans into investing
with them.
(vi) Architects of pyramid schemes took advantage of legal inadequacy
in the country to swindle investors of their money.
(vii) The Provincial administration had attempted to dissuade the public
from investing in the pyramid schemes but their advice was not
heeded to.
(viii) Directors and promoters of pyramid schemes displayed certificate
and trade license to create the impression that their businesses had
the blessings of the government.
(ix) Advocates involved with pyramid schemes during the drawing and
signing of contract agreement between the investors and the pyramid
schemes was interpreted to mean that the pyramid schemes were
legitimate and transactions genuine.
(x) The public hearings served the intended purpose. Victims of
pyramid schemes freely expressed their emotions providing the
Taskforce the opportunity to appreciate the impact the pyramid
schemes had in the social and economic life of the victims.
(xi) The investors were not entirely blameless since most of them knew
that pyramid schemes were illegal.
Report of the Taskforce on Pyramid Schemes
74
(xii) Many investors saw pyramid schemes as a genuine investment
opportunity.
(xiii) The church especially the Deliverance churches were convinced that
pyramid schemes were the opportunity for economic empowerment
(xiv) No director has indicated willingness to refund money to the
investors.
(xv) Some prominent Kenyans were mentioned by the investors in
relation to pyramid schemes.
Report of the Taskforce on Pyramid Schemes
75
CHAPTER 5
FUNDS AND OTHER ASSETS
5.1 Introduction
The Taskforce conducted investigations to establish the whereabouts of
funds invested into pyramid schemes with a view of recommending
forfeiture and restitution.
In so doing the Taskforce looked at bank statements and tried to identify
assets that may have been acquired using proceeds from pyramid scheme
activities.
5.2 Identification of Bank accounts
The Taskforce identified certain Bank Accounts held by various pyramid
schemes. For ease of reference, the Taskforce divided the accounts into
three Categories 1, 2 and 3 dealing with Bank Accounts held in the names
of pyramid schemes, individuals and frozen accounts, respectively.
5.2.1 Category 1: Bank Accounts in the Institutions Names
5.2.1.1. Deci-Capacity Building Entrepreneur
Bank/branches Account No
Post Bank, NAIROBI KAA BSA006900
Signatories ID. No
George Odinga Donde 0080098
Joyce Mwebia Ligale 1911639
Redempta Susan Chetambe 16063298
(Annex 7: Signatories Details)
KCB Moi Avenue 23450409
Equity Bank Kimathi Street 0260290374141
Standard Chartered Moi Avenue 015011891800
Standard Chartered Koinange Street 0102077262500
Standard Chartered Moi Avenue 0150178918200
Cooperative Bank Thika Branch 0113683128300
K- Rep, Naivasha Road 003020013577
Report of the Taskforce on Pyramid Schemes
76
KCB , Nairobi Branch 017234561036
Balance:
Kshs. 16,010695.25 as at 30/11 /2006
(Annex 8: Bank Statement)
K – Rep Buruburu, 006020002717
Equity Kariobangi 02090855839
Southern Credit , Kakamega 3040000203
5.2.1.2. Tujibebe Sacco Ltd
Bank Branch Account No Observations
Cooperative Bank Ngong
Road
0110298632500 Tujibebe Sacco was an off
shoot of DECI and its
operations were carried out by
DECI officials.
DECI Regional managers registered companies which were used to
collect and make payments on behalf of DECI. The following are
details of accounts operated by the Regional Managers;
Company Bank Signatories Comments
Winners Transactions
Network Ltd, Nyeri
branch
-Bishop Peter Ndegwa
-Bishop Wachira Karani
-David Muchuki
Taskforce recommends further
investigations of the Branch
Managers.
Jamster Investment
(k) Ltd, Embu
-Mr.& Mrs. Jamleck
Muthoka
Account Details
Consolidated Bank, Embu Branch
No. 012/00/153237/00
Bal-295,000 at 31.5.2007
Taskforce recommends further
investigations
The Taskforce recommends that further investigations of the Branch
Managers be conducted by the CID.
5.2.1.3. Tumaini Family Ltd, Nairobi.
Bank Branch Account No Status
Kenya Post Office Savings
Bank
KAAACBSA009009
3
Bal.Kshs. 24,168.70 as
at 31/12/2008
Equity Four Ways 0020290826908 Bal.Kshs 28,423.00 as
at 30/7/2007
Report of the Taskforce on Pyramid Schemes
77
5.2.1.4. Akiba Microfinance
Bank Branch, Account No.
KCB City Centre, 240645129
KCB, Ongata Rongai 260643046
Stanbic Nairobi, 0178328501
KCB Nakuru, 017234561036
5.2.1.5. Sasanet Investment ltd.
Bank, Branch Account No.
Cooperative Bank City Hall 209292925900
KCB, Kipande House 241783769
Barclays Queensway, 8774216
Consolidated Nairobi, 00500552500
Equity Bank Nairobi, 0180290109739
Nic Bank City center branch, 1200001482
Barclays Bank Queensway, 8842777
Standard Chartered 01002292337100
Equity Bank 0260191428318
Stanbic Bank 0121280638301
The status of the above accounts was not established.
In addition to the above information, a director of Sasanet Ltd
named the Banks where he alleged that Sasanet officials operated
accounts. He was not able to provide full information pertaining to
account names and numbers as demanded by the Taskforce. The
details he provided are given here under;
Bank Branch
National Bank Kenyatta Avenue
I&M Bank Kenyatta Avenue
Dubai Bank Kenyatta Avenue
Nic Bank Community Branch
Equity Bank Community Branch
Report of the Taskforce on Pyramid Schemes
78
5.2.1.6. Clip Investment Co-Operative
Bank/ Branch Account No. Status
Cooperative Bank
Kimathi Street
0112083188600 Nil balance.
The Co-operative Bank balances as at 2.4.2007 was Kshs.
18,809,599. A major deposit of Kshs. 5,010,500 was made on
11.4.2007 bringing the total to Kshs. 23,070,099.70. This amount
was subsequently withdrawn on 19.4.2007 through a banker’s
cheque No. 180333. Account closed with nil balances.
(Annex 9: Clip Bank Statements)
5.2.1.7. King Script Publishers, Limited
These bank accounts were for Clip investments Cooperative but
operated accounts under Kings Script Publishers, the original
company before transforming into a co-operative.
Bank/ Branch Account No.
Cooperative Bank/ Kimathi Street / 0100915178600
Cooperative Bank/ Kimathi Street 0113682362100
National Bank/ Kenyatta Avenue 0100213178600
5.2.1.8. Kenya Christian Community Sacco
Bank Account No. Status/Commets
Equity Bank 0260290629924 Bal. kshs 242,766.25 as at
29/5/2007
Major transactions undertaken
through this account by Prim &
Angelo Ltd which was indicated as
a corporate member during the
period Jan-Dec 2007
Consolidated Bank,
Koinange Street
0120050604400 Unknown
Equity Bank,
Kimathi Street
0260290892153 Bal. Kshs 433.85 as at 11/1/2008
Report of the Taskforce on Pyramid Schemes
79
5.2.1.9. Kenya Business Community Sacco
Bank/ Branch Account No.
NIC/ City Branch CA2-200001795
Equity/ Fourways Towers 046244613363
Oriental/ Koinange Street 0101059006
CFC/ Chiromo Road 0000105910
.
5.2.1.10. Kenya Multi-Purpose Business Entrepreneurs Ltd
Bank/ Branch Account No Status
Nic Bank/ City Center 21200001795 Unknown
Observation
(i) Kenya Business Community Sacco worked closely with Kenya
Multi-Purpose Business Ltd.
(ii) Kenya Business Community entered into an agreement with
Kenya Multi-Purpose Business Entrepreneurs for provision of
financial custodianship and management services. See Annex
10(a): Financial Custodianship and Management Agreement
(iii) The current Kenya Business CEO- Mr Michael Kariuki who
took over from Gideon Mwiti informed the Taskforce that Kshs.
6 million was in imperial bank when the account was frozen.
He promised to avail documentary evidence but failed do to so.
Documents availed to the Taskforce reveal that Mr. Gideon T.
Mwiti, was the National Coordinator and the General Manager
of Kenya Business Community Sacco in the year, 2007.
(Annex 10 (b): Letter of Recommendation and Appointment
of a Director)
5.2.1.11. Smartlife Strategy Farm
Bank/ Branch Account No
Family Finance/ Kenyatta Avenue 136518
Report of the Taskforce on Pyramid Schemes
80
5.2.1.12. Smart Welfare Strategy Farm
Bank/ Branch Account No
Family Finance/ KTDA 381065
National Bank/ Kitui 01243511800
Barclays Bank/ Moi Avenue 075-1350023
Cooperative Bank/ Coop. House 0111602965200
5.2.1.13 Jitegemee Entrepreneurship Sacco
Bank/ Branch Account No Status
Fina Bank 111180022 Balance of ksh.53m as at
25.6.2007
Transfer of Kshs. 52,643,460
as TBO/6726
Nil bal. as at 26/6/2007
Observation
(i) The Society was linked to Mont Blanc Afrique, a Private
Company.
(ii) There were swift charges on RTGS of kshs 1000 reflected on
bank statement
5.2.1.14 African Christian in Development (ACID)
Bank/ Branch Account No
Equity/Kenyatta Avenue, Nakuru 0310190537881
Observation
(i) African Christian in Development (ACID), registered as a
Limited Company with its Head Quarters in Uganda,
Kayanga Road, Box 23859 Kampala. (Annex 11:
Registration Certificate).
Report of the Taskforce on Pyramid Schemes
81
The Chief Director to the organization is Mr. Aaron
Siribaleka. It is registered as a Community Based
Organization (CBO) to facilitate its operations in Kenya.
ACID Trust was registered on 17th April 2007 under
Certificate No. 138134.
(ii) The documents availed to the Taskforce shows that money
collected from investors in Kenya through the above bank
account was transferred to a Bank account in Uganda, as
detailed here below;
a) On 14/05/2007, USD 40392.15 was transferred to
Stanbic Bank account No. 0110003182501, IPS Branch
in Kampala, Uganda. The transferred amount
translates to Kshs. 2,781,000.00.
b) On 4/09/2007, Kshs. 450,000.00 transferred to the same
account via Western Union, followed by Kshs.
105,000.00 and Kshs. 300,000.00 transferred on
9/6/2007 and 22/05/2007, respectively. (See Annex 12:
Documents on Money Transfer to Uganda).
(iii) The above transfers were made from Nakuru
region Bank Account which was operated by:
NAME ID/NO
1 Dickson N. Sarayi 2093354
2 Benedict M. Mutire 7483470
3 Mildred Indeti
(iv) The Director Aaron Siribaleka was invited by the
Taskforce for an interview to shed more light on ACID
transactions but did not turn up. (See Annex 13: letter
from Bishop Siribaleka)
Report of the Taskforce on Pyramid Schemes
82
5.3.1.15 ACID: Kakamega Branch, A/C NO. Kakamega
Bank/ Branch Account No Status
KCB, Kakamega 74147112953 Balance Kshs. 5,904.000.00.
as at May, 2008
The above account was operated by Zacharia Chimegero of
Kakamega Region. He attended the interview and provided details
of accounts operated in Kakamega. He however stated all the money
was transferred to Uganda.
General observation on ACID Bank Accounts
(i) The above Bank Accounts cover transactions for Rift Valley
and Western Kenya Region. The Taskforce learnt that ACID
had regional coordinators who collected funds from the
investors and transferred them to the Head Office in Uganda,
Kampala, after deducting 10% expenses. However, the
Taskforce was not able to obtain documents from other
regional coordinators.
(ii) The Taskforce was informed that a lot of hard cash was
transferred to Uganda through the border.
Recommendation
This case requires further investigation to establish the state of
affairs in all the Regions.
5.3.2 Category 2: Bank Accounts in Personal Names
Under this category, there are some promoters who opened
accounts for the purposes of making payments to the
investors. The Bank Accounts were opened in personal names
as highlighted here below;
Report of the Taskforce on Pyramid Schemes
83
5.3.2.1. Mr. George Odinga Donde,
Bank/branch Fixed Deposit
Account
Status
Chartered
Standard Bank
01416-789182-00 Bal. Kshs.
25,321,369.86 as at
19/10/2006
(See Annex 14: Fixed Deposit Certificate)
(i) Mr. George Odinga Donde, identified as the Sole
Proprietor of DECI,is alleged to have opened and
operated Personal accounts where it is suspected
deposits into the accounts originated from
investors’ funds, collected under the name DECI.
(ii) The Taskforce effort to summon Mr. Donde to shed
light on DECI transactions was not fruitful. He sent
a text message stating he had criminal cases
pending in court and that appearing before the
Taskforce would jeopardize his position.
5.3.2.2 Mr.Jamleck Muthoki Mbuko (DECI)
Bank/branch Account Status
Cooperative bank,
kutus
0110083238900 Bal. kshs 2135.85 as
at 25.6.2007,
Family Finance
Building.
760705 101 09780 Bal. Kshs.
8,911.00 as at
19.6.2007.
5.3.2.3 Lillian Adhiambo, Farida Salim &Ester Bongo;
Name Bank Account No
Farida Salim & Ester
Bongo
K rep 009060603284
Lillian Adhiambo
Ogola
Barclays 030821552435
Report of the Taskforce on Pyramid Schemes
84
5.3.3 Category 3 Frozen Bank Accounts
The Taskforce took note that BFID made applications to the Court
for suspension of suspected Bank accounts on 28th December 2006,
to facilitate their investigation. The orders sought were granted.
(Annex 15: Freezing Orders) The balances given here below were
those obtaining as at the time the order to suspend the operations of
the said banks was sought.
5.3.3.1 Deci-Capacity Building Entrepreneur
Bank/ Branch Account No. Status
Equity Bank/ Kimathi 02602903774141 Balances as at 26th
September, 2006 kshs
11,039,687.50
Standard Chartered, /
Moi Avenue
01416-789182-00 Balances as at 17th
/11/2006 kshs 25 Million
Standard Chartered/
Bank.
015011891800,
Fixed Account
Not Established
K-rep Bank,
Headquarters, Naivasha
Road
003020013577 Balance kshs 80 million as
at 28th December 2006
Post bank
KAACBSA006900
0,
Balance kshs 34 million
The Standard Chartered
Bank, Koinange Street
0102077262500. Not known
Observation
All the above cases were in connection with DECI. Mr. George
Odinga Donde was taken to court and the accounts frozen but the
case was withdrawn by AG under Section 87 (a) of Criminal
Procedure Code. He was then able to continue operating the
accounts. (See Annex 16: Brief Summary of Court Cases.
Report of the Taskforce on Pyramid Schemes
85
5.3.3.2 Sylvia investment
Bank/ Branch Account No.
Family Finance Building Society at Branch
Centre Ngara Nairobi
315588
Observation
The Taskforce noted that the account was frozen with an alleged
balance of Kshs 100 Million, but the suspension was lifted by the
Chief Magistrate at Nairobi Court on 15th June 2006 where the court
directed that Inspector Mwita of Force No. 230186 BFID supervise
the release of deposits to the complainants in this case. The report on
release of funds to the investors was not availed to the Taskforce.
(Annex 17: Ruling on Sylvia Case)
General Observation on Frozen Account
(i). The total amount in the various accounts at the time of
suspending the operations stood at Kshs 250,763,452.00,
representing two institutions only out of 270.
(ii) During public hearing, it was alleged that several accounts
were frozen with a sum of Kshs 5 billion. The Taskforce was
not able to establish other accounts that were frozen. This
area requires further investigation and CBK should issue a
Public Statement on status of frozen accounts.
5.4. Conclusion
The Bank Statements availed, revealed that most of the accounts had
been closed with minimal or nil balances. These closures were
preceded by huge withdrawals in the form of transfers and cash
withdrawals for undisclosed reasons.
Report of the Taskforce on Pyramid Schemes
86
Summary of balances for the accounts highlighted above are as
given below;
Other accounts Kshs. 22, 763, 453.00
Frozen Accounts Kshs. 250,763, 456.00
272,526,908.00
These balances were for varied dates and the current status is not
known.
The Taskforce wishes to note that this list of Bank accounts is not
exhaustive due to flow of information and the time within which the
Taskforce had to accomplish this task
5.5 Other Assets
The Taskforce carried out further investigation into fixed assets suspected
to have been acquired using investors funds with a view to identifying and
determining the status.
This approach was also motivated by the fact that claims from investors
who registered with the Taskforce stood at Kshs 8,179,082,144.00, and no
substantial cash could be obtained from the Bank Accounts, it was therefore
imperative for the Taskforce to establish if the funds had been used to
acquire other assets.
5.5.1 Identification and Status of other Assets
The following assets were identified and are suspected to have been
acquired using money derived from pyramid schemes.
Report of the Taskforce on Pyramid Schemes
87
Scheme Properties
Clip
Investments
Sacco Ltd
Peter Ndakwe is alleged to have bought plots in Runda worth Kshs.200m
and transferred the property to Pakinstar Ltd of Sun Jopskin SA
Pentinkson, Panama for Kshs.25m each. Transfers effected on 11.7.2006
and 20.4.2007. The L.R NOs are 14970/15, 14970/14, 14970/7 and
14970/6. The transfers were made at the height of complaints by investors
It was alleged that Ndakwe may own a lot of property in Canada
Kenya
Business
Communty
Land situated in Embakasi near Fedha
Alleged that society’s funds were used to purchase land and cars through
Okonjo & Co. Advocates. It is alleged that the society’s cars were in a
yard along Thika Road near Tana Resort
Kenya
Multipurpose
Company Ld
-Milling plant at Athi River (Msafiri Maize Flour)
-Entertainment joint at Thika Road which has since been closed. Tana Ltd
is still ongoing and is located at View Park Towers at the former offices of
Kenya Business Sacco Ltd
-vehicle on loan by the society for the members. Some members still owe
the society money in the form of defaulted loans.
-There was a direct link between Kenya Business and Kenya Multi-
purpose. Investors funds were siphoned out from Kenya Business to buy
properties in Kenya Multipurpose
-The same officials transacted on behalf of the society and the company
Sasanet
Investment
Ltd
30 units of flats worth Kshs.60m in Sunrise estate.
11.5 acres in Nyari Estate, Nairobi. Deposit of Kshs. 40m paid for the
land
4 flats along Chaka road, Milimani
32 flats in Imara Daima.(NAIROBI/BLOCK 93/1074-Swara Flats) each
sold for Kshs.2.5m
3 flats in South B (re-insurance flats)- Flats were sold for Kshs.2.5m .
All properties sold through his advocate Ajaa Olubayi of Ajaa & Co.
Advocates. The advocate promised to avail more details on the
transactions but never did so.
The court in Case No. 479 of 2007 at Milimani Commercial Courts
ordered that Michael Chege be held personally responsible. The court
issued a prohibitory order restraining Michael Chege from dealing with
the above properties.
(Annex 18:Copy of Court Order on Michael Chege)
Spell
Investments
Ltd
A director of Spell, Mr. Boniface Anderson Ngosia had connections with
Stanbic Bank. He died in a road accident and two days prior to his death
he had given instructions to the bank to transfer money in his account to
his mother Francisca Asembo. It is alleged that the account had
approximately Kshs. 200m which the Taskforce was not able to ascertain.
Report of the Taskforce on Pyramid Schemes
88
5.6 Constraints
The Taskforce experienced a number of constraints in this task as
highlighted hereunder;
(i) The legal procedures involved in asset tracing are lengthy and
litigious. These procedures are especially lengthy in
establishing the status of Bank Accounts which can only be
done on obtaining a court order.
(ii) The Taskforce visit to government department and related
institutions to shed light on the assets of pyramid schemes
bore no fruits. More specifically, the Central Bank of Kenya
on status of bank Accounts and Ministry of Lands on status of
properties in the name of Directors or institutions.
(iii) The Taskforce also faced logistical issues which arose as a
result of the huge number of assets involved. Authentication
and investigation of accounts and assets required sufficient
funding, time and capacity to investigate.
(iv) Information provided by victims was scanty and could not
assist much in investigation.
(v) Directors/officials invited for interview but only ten (10) out
of one hundred and sixty (160) invited institutions appeared
where most denied operating pyramid schemes but justified
their operations were aimed at economic empowerment to
the investors. They failed to provide substantive information
on the whereabouts of funds claimed by the victims.
(vi) The number of institutions involved which at the end of
investigation stood at 270 made the task enormous. In this
regard it may be necessary for an investigative unit to be
formed with powers to investigate arrest and prosecute and
trace the assets that may have been acquired using proceeds
of pyramid schemes activities.
Report of the Taskforce on Pyramid Schemes
89
5.7 Recommendations
5.7.1 Standing Committee
The immediate setting up of a Standing Committee under the
Ministry of Co-operative Development and Marketing,
comprising of relevant government ministries/agencies and
private sector. This committee will be responsible for the
following;
(i) Monitoring the implementation of the necessary legal
framework.
(ii) Setting up and administration of the Trust Fund.
(iii) Overseeing the investigation of accounts and tracing of
assets.
(iv) To be responsible for the restitution of recovered assets, if
any.
5.7.2 Judicial Commission
The Taskforce observes that the government has a duty to
safeguard the interests of its citizens. We therefore recommend
the formation of a Judicial Commission to undertake further
investigations aimed at tracing funds and assets for restitution to
investors.
5.7.3 Trust Fund
A Trust Fund be set up under the Ministry Of Co-operative and
Marketing to manage funds and properties recovered. The members of
the said fund should include other relevant government
ministries/agencies and reputable Kenyans
5.7.4 Investigations/ restitution;
d) The CID to undertake immediate investigations on Bank
Accounts involved and complete within six (6) months.
Report of the Taskforce on Pyramid Schemes
90
e) The CID to undertake and complete tracing of assets
acquired from proceeds of pyramid schemes operations
within one year with a view of recovery and restitution.
f) The government to enlist the assistance of foreign
missions/governments where the perpetrators may have
invested proceeds from pyramid schemes activities.
(iv). Parliament to fast-track the enactment of Mutual Legal
Assistance Bill that was published on 8th May, 2009.
5.7.5 Frozen Accounts
The CBK to issue a public statement on the current status of all
frozen accounts related to pyramid schemes
Report of the Taskforce on Pyramid Schemes
91
CHAPTER 6
EFFECTS OF PYRAMID SCHEMES
6.1 Introduction
The negative impact of pyramid schemes on the society cannot be
underestimated. The gravity of the situation is exacerbated by the fact
that the schemes had spread to virtually all parts of the country.
The Taskforce toured the country collecting views from investors who
had lost money in the schemes. The hearings also gave investors a forum
through which they could ventilate their experiences. It is from these
experiences that the Taskforce was able to deduce a clear picture of the
impacts the schemes had on the lives of Kenyans.
6.2 Economic effects
The economic effects of the schemes on the investors were devastating.
Kenyans resorted to borrowing loans from banks, Saccos and other
Micro Finance Institutions (MFIs) so as to invest. Some resorted to
selling their assets and diverting funds meant for other cases to the
schemes while others used their lifetime savings and retirement benefits.
The Taskforce learnt that the schemes impacted negatively on the Sacco
movement. This in turn had a ripple effect to the economy as Saccos
make a huge contribution to the economy. These impacts were as
follows;
(i) Increased loan delinquencies- investors were unable to
service their loan repayments resulting in a huge portfolio of
non- performing loans that Saccos, Banks and other
lenders have been left grappling with.
(ii)Loss of credibility and a tainted image of Saccos- many
investors who lost in the schemes have shied away from the
Report of the Taskforce on Pyramid Schemes
92
Sacco movement for fear of incurring further losses. This has
led to decreased membership and lower savings mobilization.
(iii)Loss of revenue and increased levels of poverty- individual
investors lost money that could have otherwise been used to
lift them out of poverty by way of long term legitimate
investments in the Sacco movement.
Investors also quit jobs to work with the schemes that had attractive
remuneration packages. In Embu, a pastor recounted how he had been
persuaded to quit his job in Nairobi to start a branch of a scheme which
eventually collapsed and rendered him jobless.
Startling revelations were made by investors on the magnitude of money
lost in the schemes. The Taskforce received information of an investor
who lost Kshs. 22 Million to Sasanet Investments Ltd. Another investor
lost Kshs. 20 Million but shied away from registering with the
Taskforce.
The Taskforce heard of painful experiences of how investors’ throughout
the country were left destitute or in huge debts when the schemes
collapsed. In Thika, an investor narrated to the Taskforce how she
borrowed Kshs. 10,000 to take her sick child to hospital but instead
ended diverting the funds to one of the schemes expecting huge returns.
She lost everything. Being jobless and a single mother of two she was
unable to repay the debt and take the child to hospital for an operation.
At the time of hearing, the sick child had not been treated as the meager
earnings from odd jobs obtained were barely enough to buy food for
herself and her two children.
An impromptu harambee conducted at the end of the hearing raised
funds to enable her seek treatment for the child.
A victim in Thika recounted how after returning from the U.S.A after the
demise of her husband, she invested her entire savings of Kshs. 600,000
which was all lost when the scheme went under. She is now a widow and
jobless. The members also heard of a situation where an investor had
lost all her pension benefits in the scheme.
Report of the Taskforce on Pyramid Schemes
93
The Taskforce learnt that retrenchees and retired people were heavily
affected by the schemes. Former employees of Telkom Kenya were
particularly affected. In Nairobi, they recounted how they invested entire
retirement packages and pension benefits in the schemes.
One witness told the Taskforce that after retrenchment she was informed
by a colleague of a ‘good investment’ opportunity. After verifying that
the scheme was registered she invested all her retirement dues. To date
she has been depending on donations from well wishers. Comparable
tales were recounted by other retrenchees who suffered a similar fate.
The economic effects are not unique to Kenya. The collapse of these
schemes set Albania back in terms of economic development and
precipitated a near civil war in which there was a lot of destruction of
property. Similar economic effects were witnessed in the Philippines and
Columbia.
6.3 Security effects
The collapse of the schemes brought about security concerns as investors
threatened to take the law into their own hands. They said that the
recognized wheels of justice were painfully slow and they could not
continue to suffer as the masterminds of the scheme continued enjoying
the ill gotten wealth.
The Taskforce heard from the National Pyramid Victims Initiative how
George Donde was lured and held hostage at gunpoint in Kiambu. His
release was only secured after payment of Kshs. 20 Million to the
investors. How this amount was obtained in the wee hours of the night
still remains a mystery.
The Taskforce also takes cognizance of the fact that the threat to security
is real as investors who are jobless may resort to crime due to
frustrations or for purposes of revenge.
In a shocking case, a manager with one of the schemes was thrown out
from an office window in a high-rise building by investors who were
demanding payment. The manager later died from the injuries sustained.
Report of the Taskforce on Pyramid Schemes
94
Cases of a security nature have also been reported in other jurisdictions.
In Colombia, violent street protests were recorded when the schemes
collapsed. It is estimated that the population lost millions of dollars.
6.4 Socio-Economic Effects
This revolved around reported cases of depression, suicide, illnesses and
matrimonial breakups.
In Meru one investor told the Taskforce how she had convinced her
husband to sell their matrimonial home and invest the funds in one of the
schemes in anticipation of huge returns. They lost everything after the
collapse of the scheme. The husband died as a result of depression.
Today, she is a homeless widow, jobless with three children.
A witness in Kisii reported how his family through a joint venture had
raised Kshs. 500,000 which they invested into a scheme. Upon collapse,
his relatives were taken ill and diagnosed with illnesses such as ulcers
and high blood pressure.
Instances of 20 suicide cases were reported in the print and electronic
media. Similar suicide related deaths were also brought to the attention
of the Taskforce during the public hearings. We could not however
authenticate the exact number of these deaths.
Extreme cases were reported. In Embu, an investor mortgaged his house
and pumped Kshs. 2,000,000 in the schemes. With the collapse of the
scheme, he lost all the money and his matrimonial home was sold by the
bank. He was reduced to living under a tree. To add to his woes, his son
a student at a local medical school committed suicide when his father
was unable to pay school fees. His other son ran away and has never
been seen since 2007. The wife got so depressed and is bedridden while
a sister was beheaded by unknown people in suspicious circumstances.
Problems of matrimonial nature were highlighted in detail. A Mombasa
pastor went bankrupt after pumping Kshs. 600,000 in a scheme that later
collapsed. He was reduced to sleeping in a store after being ejected from
Report of the Taskforce on Pyramid Schemes
95
the matrimonial house by the wife and sons. He is currently jobless after
his pastor ship certificate was withdrawn.
Also in Mombasa, a woman reported how she invested Kshs. 450,000 in
the schemes without the knowledge of the husband. After the collapse of
the scheme, she told the husband who responded by taking in another
woman. He claimed that she was untrustworthy. This has caused her to
live in anguish to date.
The Taskforce observed that the investors and the public in general
developed a degree of mistrust towards politicians. This was fuelled by
the public perception that some of the money generated in the schemes
was used to finance campaign activities in the run up to the 2007 general
elections.
In America after the collapse of the most high profile scheme in America
perpetrated by Bernard L. Madoff, a New York based fund manager who
had lost $1.4 billion in the scheme committed suicide in his office by
slashing his wrists.
6.5 Religious Effects
Out of bitterness, some investors used religion to threaten dire
consequences on the masterminds of the schemes. One of the witnesses
had this to say;
“I fear no man, but I fear God. Ile pesa yangu yule yoyote
alichukua akala hizo pesa zangu zitawaza kwa tumbo zako na
watoto wako wote. Nasema hivyo bila kuogopa-mpaka the fourth
generation; sijui kama tutafika huko.”
A huge number of investors were recruited by church leaders. It thus
followed that when the schemes collapsed these investors were
compelled to blame the same leaders for their woes. Representations
were made by angry investors who vowed never to patronize the
Report of the Taskforce on Pyramid Schemes
96
churches for these leaders. Some leaders have been gradually
abandoning their Christian values.
CHAPTER 7
ROLE OF GOVERNMENT INSTITUTIONS AND AGENCIES
7.1 Introduction
During the public hearings and deliberations of the Taskforce it became
apparent that Government departments and Agencies had played some
important role in the Pyramid Schemes saga. It thus became necessary
that the roles be outlined.
The discussions in this chapter capture the public perception and their
attitude towards the institutions. Generally, there was a feeling that the
interventions, if any, by these institutions were neither timely nor firm.
In other cases, it was perceived to be a mere public relations exercise.
Report of the Taskforce on Pyramid Schemes
97
7.2 Government Institutions
7.2.1 Ministry of Finance
This Ministry is generally responsible for the fiscal policy on
behalf of the government. At the height of the pyramid schemes
in mid 2007, the MoF and the CBK issued cautionary statement in
the print media to warn members of the public against
participating in the schemes.
Incidentally some investors ignored the caution and accused the
government of interference. They were under the perception that
the schemes were safe and they could make money from the
exponential returns.
After the collapse of the schemes, the Ministry was accused by
investors of complacency as it was seen to have taken inadequate
measures to contain the schemes.
While the Taskforce appreciates the efforts of the Ministry in
issuing the cautionary statements, we observe that the momentum
of the statements fizzled after a short period of time. However, the
investors also have a share of blame as they continued to
participate in the schemes in total disregard of the cautions.
On the 22nd May 2009, the Taskforce held an interview with Dr.
Geoffrey Mwau, the Economic Secretary. The highlights of the
meeting were as follows;
(i) That pyramid schemes were a matter of national concern as
the losses may have a negative impact on the economy.
(ii) That there was urgent need to implement a legal
framework outlawing pyramid schemes.
(iii) That it may be worthwhile to consider the establishment of
a body to oversee pyramid related issues in the new legal
framework.
Report of the Taskforce on Pyramid Schemes
98
(iv) The Taskforce proposed that the amendments to the Penal
Code to criminalize pyramid schemes be included in the
Finance Bill, 2009/10 as an immediate measure that needs
to be undertaken. Consideration may be given on whether
the amendments may apply retrospective.
The Taskforce is of the view that the Ministry will play an
important role in the future as far as pyramid related issues are
concerned.
7.2.2 Office of the President, Provincial Administration and
Internal Security
To have a better appreciation of the role of the Office of the
President (OP), the Taskforce analyzed the institutions under its
jurisdiction.
7.2.2.1 N.S.I.S
The Taskforce appreciates that N.S.I.S plays an advisory role to
various government bodies on security matters. The
communication by the N.S.I.S is also highly confidential and
intended for the consumption of authorized persons.
Attempts to hold a consultative meeting with N.S.I.S did not
materialize.
7.2.2.2 C.I.D
The activities of the promoters of the schemes were of a
fraudulent and criminal nature.
The Taskforce explored the possibility of involving the CID in
Bank Account investigations and tracing of assets. A letter was
Report of the Taskforce on Pyramid Schemes
99
written to CID who responded and advised that they would
release an officer if need arises. However the Taskforce did not
explore that option fully due to limitation of time.
During our visit to the CID on the 20th May 2009, the following
issues were highlighted;
(i) That all reported cases to CID were referred to the BFID.
(ii) That Inadequate legislative framework created a loophole
that was exploited by the masterminds.
(iii) That if assets are traced, they can be sold and funds
restituted back to investors.
(iv) That the CID suspected operations of the pyramid schemes
were criminal but could not move to investigate until much
later when there were complainants.
7.2.2.3 Banking Fraud Investigation Department (BFID)
This is a unit of the CID seconded to the CBK. They are
involved in the investigation of banking fraud related
cases.
Pursuant to a meeting held on the 17th February 2009
between the Taskforce and BFID, we received a written
submission on pyramid schemes investigated by the BFID.
The submissions had highlighted three cases investigated
by the unit and the subsequent court rulings. The three
matters related to DECI, Akiba Microfinance and Sylvia
Investment Ltd.
7.2.2.4 Provincial Administration
The role of the provincial administration was presented in
many forms. The Taskforce heard of how Administration
Police were used to offer security services to the pyramid
Report of the Taskforce on Pyramid Schemes
100
schemes that handled a lot of money. Further, it was
alleged that the provincial administration were at hand to
officiate over events involving the schemes. In Nyeri it
was alleged that the police band was used in events
involving one of the schemes. It is on this basis that some
of the investors assumed that the schemes were endorsed
by the government.
However, the taskforce was informed that public barasas
organized by the administration were used to dissuade the
public from joining the schemes but they ignored.
7.2.2.5 Attorney General (A.G)
The A-G is the principal legal advisor to the government.
This is also the prosecutorial arm of the government. The
Taskforce was advised that the complaints filed and
investigated by the CID and BFID were prosecuted by the
A-G.
The major constraint to these prosecutions was the
inadequate legal framework. In effect, the scheme
perpetrators were often charged under the penal code and
Banking Act. As will be noted later in the report, the
punishments for these available legal regimes are not
deterrent.
The term of the Taskforce expired before the Taskforce
could receive a substantive response from the relevant
department.
7.2.2.6 Judiciary
The judiciary is the arm of government bestowed with the
responsibility of dispensation of justice. The focus of this
institution was in the manner in which it handled the
pyramid related cases.
Report of the Taskforce on Pyramid Schemes
101
The role of the judiciary was highlighted in its handling of
frozen accounts involving DECI and Sylvia Investments.
These cases are discussed substantively in Chapter 5 and
9.
7.2.3 Ministry of Co-operative Development & Marketing
A total of 17 pyramid schemes were registered under this Ministry. The
Commissioner for Cooperative Development (CCD) is charged with the
registration of Co-operative Societies. The Taskforce notes the actions of
the Ministry who uncovered the intentions of the schemes and quickly
acted to quell the mischief. The following interventions were taken.
Name of
Society
Date of
Registration
Action Taken Observations
Abib Sacco
Society Ltd
25.1.2007 Suspended on
19.6.2007
Registration cancelled
on 12.9.2007
Society was suspended and eventually de-
registered after due investigations by the
CCD office
Abib
Investment
Ltd
30.1.2007 Registration cancelled
on 12.9.2007
Society de-registered after an inquiry
established that it was conducting pyramid
related activities.
Capital
Investors
Sacco Ltd
21.3.2007 Registration cancelled
on 5.6.2007
Registration was cancelled after inquiry was
conducted.
Society activities had not commenced by the
time it was de-registered.
CLIP
Investment
Ltd
20.9.2006 Inquiry conducted
May 2007.
The scheme had been operating as
Kingscript Publisher Ltd before seeking
registration as a Sacco.
Most of its activities were carried out under
Kingscript Publishers Ltd
Excellers
Networks
Sacco
26.9.2006 Inquiry in May 2007.
Society registration
cancelled and
liquidator appointed
on 10.7.2007
Upon due inquiry the society was registered
and protective measures in the form of a
liquidator put in place.
The scheme had been operating previously as
Excellers Network Investment Ltd through
which most of its operations were carried
out.
Report of the Taskforce on Pyramid Schemes
102
Faith Care
Sacco Ltd
28.11.2005 Registration cancelled.
Liquidator appointed
on 6.8.2008
This intervention was initiated when the
CCDs office suspected that the scheme may
be carrying out pyramid related activities.
Name of
Society
Date of
Registration
Action Taken Observations
Global Sacco
Society Ltd
April 2007 Registration cancelled
on 5.6.2007
The scheme had operated as Global
Entrepreneur Enterprise Community
Development.
The Sacco never took off after registration as
investigations revealed that transactions were
conducted through the previous outfit and the
Sacco name was only used as a camouflage.
Jitegemee
Entrepreneurs
Sacco Ltd
29.3.2007 Registration cancelled
on 5.6.2007 and
liquidator appointed
The society was operating as Mont Blanq
Afrique Ltd through which bulk of the
transactions were conducted. The Sacco
registration was a smokescreen to mislead
investors that it was a legitimate entity.
Kenya
Business
Community
Sacco Ltd
8.3.2006 Society suspended on
19.6.2007
Liquidation in
September 2007
Investors were misled by its directors to file
a claim seeking to prevent the CCD from
deregistering and liquidating the Sacco.
Matter still pending in court.
Kenya Insured
Community
Sacco Society
Ltd
13.3.2006 Registration cancelled
on 16.11.2007
The registration was cancelled after an
inquiry established that the society was not
operating in accordance with the Co-
operative Act.
Sasanet
Investment
Ltd
10.1.2007 Registration cancelled
on 17.3.2008 and
liquidator appointed
The scheme had been operating as Sasanet
Ltd
The registration of the Sacco was an attempt
to disguise the scheme that was operating as
Sasanet Ltd through which most of its
activities were carried out.
Spell Sacco
Ltd
3.5.2007 Registration cancelled
on 11.7.2007
Registration cancelled after inquiry
established that the society was carrying out
pyramid related activities.
Tujibebe
Investment
Ltd
17.1.2007 Registration cancelled
on 5.6.2007
Previous Outfit- Tujibebe Revolving Fund.
No activity was carried out as the Sacco
never took off. This Sacco was an attempt to
legitimize the Tujibebe Revolving Fund
operated by DECI.
Report of the Taskforce on Pyramid Schemes
103
Tujibebe
Sacco Ltd
10.1.2007 Registration cancelled
on 15.8.2007
The Sacco was de-registered before it took
off. The Sacco was an attempt to legitimize
the Tujibebe Revolving Fund operated by
DECI.
Observation.
The Taskforce observed that most of the schemes had previously other
outfits before seeking registration as Co-operative Societies. The
schemes mutated from Companies, Business names and welfare groups
to Saccos in an attempt to legitimize their previous operations.
The Taskforce held an interactive session with the CCD who availed
insightful information on measures taken by the Ministry. The highlights
of the CCD presentation were as follows;
(i) He said that the Ministry had steered the process as the co-
operative movement was affected by the schemes. This was in
the form of unserviced loans which had an effect on the liquidity
of SACCOs.
(ii) An inspection of SACCOs suspected to be schemes was
conducted and those found operating irregularly were suspended
or cancelled.
(iii) The Ministry had appointed liquidators to liquidate schemes
whose registrations had been cancelled. He however noted that
in some cases, the responsibility of settling claims was shifted from the
directors of the schemes to the liquidators.
(iv) The Ministry does not have the capacity to supervise all the
registered SACCOs. Instead the general membership of the
society is empowered to supervise through the supervisory
committees. He however noted that the Sacco Act will be
instrumental in addressing these shortcomings.
(v) The Ministry was part of an inter-ministerial committee
constituted by the CBK to address pyramid related concerns.
Report of the Taskforce on Pyramid Schemes
104
7.2.4 Ministry of Lands
The Taskforce noted that some of the funds acquired from the schemes
were diverted to the purchase of real estate. In most cases this was in the
form of land. In an effort to be able to trace these assets, the Taskforce
sought the assistance of the Ministry.
However the Taskforce was not able to obtain information due to the
bureaucratic procedures at the Ministry. It is proposed that a follow up
on this matter be undertake
7.2.5 Ministry of Social Services
It has been noted elsewhere in the report that some of the schemes were
registered as welfare groups. This may have been occasioned by the fact
that it is easy to register a welfare group once all the minimum
requirements are met.
The Taskforce advises that the Ministry should develop more stringent
requirements to avoid the misuse of Welfare Groups by dishonest
individuals.
7.2.6 Government Agencies
7.2.6.1 Central Bank of Kenya
The Taskforce noted that the CBK took the following
measures aimed at addressing the issue of pyramid schemes;
(i) It issued two press notices in February and May 2007
urging the public against investing in pyramid schemes.
These statements were negatively received by the public
who viewed them as government interference to otherwise
legitimate investments
Report of the Taskforce on Pyramid Schemes
105
(ii) It directed commercial banks to conduct due diligence on
the accounts exhibiting characteristics of pyramid schemes
and not to accept deposits into such accounts and to act
decisively in closing them.
The CBK spearheaded the formation of a multi-sectoral team. The
mandate of this committee was as follows;
(i) To formulate and recommend strategies for public
awareness campaign on pyramid and other related
schemes.
(ii) To formulate and recommend regulations to guide banks in
dealing with pyramid and other related schemes.
(iii) To formulate and recommend strategies to apprehend
existing and would be offenders.
(iv) To review and make recommendations on a legal text to
prohibit illegal deposit taking by pyramid and other related
schemes.
This team made recommendations on public awareness and
recommendations on a legal text to criminalize pyramid schemes.
While we appreciate the role of the CBK, the Taskforce points out
that timely measure should have been taken in an effort to
safeguard funds held in the various accounts.
7.2.6.2 Kenya Anti Corruption Commission
The Taskforce held consultations with KACC on the 20th
February 2009. During this visit, the graft body advised that it
deals with public agencies or officers only and is not mandated to
private individuals or institutions. It was observed that there is a
need to sensitize members of the public on this fact as they had
continually referred complaints of a private nature to this
institution.
Report of the Taskforce on Pyramid Schemes
106
Due to the foregoing, all cases received by KACC were referred
to the CID for further action.
7.2.6.3 Public Complaints Standing Committee
The PCSC is mandated to receive all complaints against public
officers in Ministries, Parastatals/State corporations, statutory
body or any other public institution. The Taskforce held a meeting
with the PCSC on the 27th February 2009 where it emerged that
complaints had been filed against the government in relation to
the schemes. The complaints addressed perceived government
inaction and insensitivity towards the plight of the affected
investors.
7.2.6.4 Kenya Bankers Association
This is the umbrella body of banks. The Taskforce held a meeting
with the KBA on the 30th April 2009 where Mr. Wanyela,
Executive Director briefed members as follows;
(i) That issues related to the schemes should be dealt with
outmost urgency.
(ii) That pyramid schemes should be outlawed and not
regulated since they are fraudulent outfits.
(iii) That weak supervision and laxity of law enforcement
agents may have contributed to the spread of the schemes.
7.2.6.5 Law Society of Kenya.
Advocates had been mentioned by various investors as having
participated in the operations of the schemes. The involvement of
the advocates was in drafting of agreements for investments, the
acquisition and disposal of property on behalf of some of the
pyramid schemes. Some advocates were invited by the Taskforce
in order to shed light on this matter. (See Annex 19: List of
Advocates invited for interview).
Report of the Taskforce on Pyramid Schemes
107
The Taskforce held fruitful discussions with the L.S.K during
which they gave us a draft of the Anti-Pyramid Act for our
consideration. (See Annexure 20: Proposed Prohibition of
Pyramid Schemes Act, 2009l).
They also stressed that they are carrying out investigations with a
view of taking disciplinary action against advocates who may
have participated unethically in the schemes.
It is proposed that the MOCD&M in consultation with the LSK
and the A-G to fast-track the enactment of this drft into law
7.2.7 Recommendations
(i) Strengthening Registration Process
The departments that registered institutions through which the pyramid
schemes carried out their activities should apply more stringent
evaluation procedures before registration to authenticate their
legitimacy, analyze their objectives and vet the directors/officials.
(ii) Strengthening Supervision of Institutions
All government agencies charged with the registration of institutions
whose activities were associated with pyramid schemes should institute
stringent measures to strengthen their supervision mechanism by being
more vigilant in invoking their investigation and supervisory powers to
ensure that such institutions operate within their prescribed objects.
(iii) Mandate of KACC
KACC alleged that their mandated restricts its operations to public
institutions only. The Taskforce recommends that its mandate should be
extended to include matters of national concern that though involving
private institutions and individuals impact negatively on the public, for
example the pyramid scheme saga.
Report of the Taskforce on Pyramid Schemes
108
(iv) Enforcement Agencies
Law enforcement agencies to exercise vigilance in their duty to avert
occurrence of pyramid schemes operations in future.
Report of the Taskforce on Pyramid Schemes
109
PART III
THE WAY FORWARD
Report of the Taskforce on Pyramid Schemes
110
CHAPTER 8
PUBLIC EDUCATION AND AWARENESS
8.1 Introduction
The Taskforce observed that the appetite to invest amongst Kenyans is very
high. This creates a need to provide information to entrepreneurs and the
Report of the Taskforce on Pyramid Schemes
111
general public so that they are able to detect and protect themselves from these
schemes. It is in this context that the Taskforce proposes a public awareness
campaign to raise the level of consciousness with a view of enabling investors
make informed choices.
The Taskforce identified a multi faceated approach for the public awareness
campaigns. This approach consists of strategies that will create awareness on
the risks posed by pyramid schemes. Emphasis was also put on strategies that
will sustain momentum so that the public awareness campaign does not fizzle
out after a short period of time.
8.2 Channels for Awareness Creation.
8.2.1 Government Agencies
8.2.1.1 Office of Public Communications Secretary and Government
Spokesman
The Taskforce identified the office of the Government Spokesman as
an ideal avenue through which publicity may be conducted. In this
context, the Office of the Government Spokesman can disseminate
the Government position on pyramid schemes. This may involve the
printing and distribution of posters, pamphlets and t-shirts. These
materials may be distributed through government offices, churches
and barazas. The Government Spokesman may also reach out to the
public during weekly briefings with the press.
8.2.1.2 Provincial Administration
During the Taskforce public hearings and courtesy calls, it
became evident that the local administration could be of great
assistance as far as public awareness is concerned. The local
administration and ministries which includes the sub-chiefs,
chiefs, D.Os, D.Cs and P.Cs can conduct public education
through barazas. This forum enables the local administration to
disseminate the information to the members of the public at the
grass root level. Public education can also be conducted through
Report of the Taskforce on Pyramid Schemes
112
keynote speeches delivered by government officials during
National days and Public holidays.
8.2.1.3 Regulatory Bodies
These are Government agencies which control various sectors.
They include the C.B.K, Capital Markets Authority (CMA),
Retirement Benefits Authority (R.B.A), and the proposed Sacco
Regulatory Authority amongst others. These agencies can sensitize
institutions under their control on how to identify pyramid schemes
and on the need to educate the general public on the dangers of
pyramid schemes.
8.2.1.4 Relevant Government Ministries
The Taskforce notes that ministries can be used as vehicles for
public awareness. It identified the Ministries of Tourism, Co-
operatives, Finance, Education, Information and Trade as relevant
ministries for purposes of creating awareness. The government
may consider printing awareness messages on pay slips.
8.2.2 Churches
The spread of pyramid schemes was to a large extent conducted through
churches. Under this arrangement church leaders were engaged as
promoters and used to recruit investors. The pyramid scheme founders
took advantage of the trust bestowed on them by their members.
To this end, the Taskforce notes that a similar approach can be used to
educate the public. This will involve sensitizing the church leaders who
will in turn educate the public through the churches on the dangers of
pyramid schemes.
The strategy to be adopted may involve sensitizing the church leaders
through their umbrella organizations such as National Council of
Churches(N.C.C.K), Supreme Council of Kenya Muslims(SUPKEM),
Catholic Church and Evangelical Churches.
8.2.3 Representative Bodies
Report of the Taskforce on Pyramid Schemes
113
The Taskforce noted that representative bodies may be instrumental in
sensitizing their members against pyramid schemes. They include Central
Organization of Trade Union (COTU) and Kenya National Union Trade
(KNUT).
8.2.4 Electronic and Print Media
The Taskforce notes that an aggressive sensitization campaign should be
conducted through the mass media. The main advantage of this approach is
that it is able to reach many people within a short period of time.
It is proposed that expert opinion can be sought for purposes of assisting in
the design, preparation and launch of the adverts. The adverts should be
transmitted in a manner that allows the information to reach as many
members of the public as possible. The use of a wide variety of stations
and broadcasts in a variety of languages is encouraged.
8.2.5 Billboards, Posters and Pamphlets
These will contain information useful to the public on pyramid schemes. It
is envisioned that billboards containing information on pyramid schemes
can be erected at conspicuous places.
Posters and Pamphlets can be printed and distributed through channels that
will ensure that the message is conveyed to a huge section of the public.
The distribution of the posters may be conducted through churches, public
barazas, government offices and businesses.
The major advantage of this mode of communication is that since the
information is written, it can be easily stored for future reference.
8.2.6 Mobile Phones
Awareness may be conducted through the sending of short text messages
with a public awareness theme. The Taskforce takes cognizance that as a
result of increased use of mobile phones the messages can be able to reach
many people within a short time.
Report of the Taskforce on Pyramid Schemes
114
8.2.7 Panel Interviews
Panel interview involve organizing discussions in the media on topics
related to pyramid schemes. In this scenario, personalities knowledgeable
in business and other related topics will be hosted on a radio or television
station to give advice to the general public. Interactive talk shows between
panelists and members of the public may also be used as a sensitization
tool.
8.2.8 Arts
Public education through arts will entail sensitization through drama,
comedy shows and programmes aired in the radio and television and
festivals. Awareness through television can be conducted in the form of
airing comedies or programmes which have a pyramid related issue as its
theme.
Cultural festivals, for instance the Kenya Schools and Colleges Drama and
Music festivals may also adopt themes which are geared towards educating
the public on the dangers of participating in pyramid schemes.
8.2.9 Seminars
The Taskforce observed that retirees and other categories of people with
disposable income were prone to falling victims to pyramid schemes. This
was a result of lack of awareness on issues related to investments which led
them to make unwise decisions. In this regard the Taskforce proposes that
topics addressing pyramid issues should be incorporated during seminars
targeting these vulnerable groups. The Taskforce identified the Retirement
Benefits Authority as one of the institutions that may assist in this
sensitization process.
8.2.10 Internet
The internet has turned the world into a global village. This means that
information on the dangers of pyramid schemes can be transmitted via the
internet. The advantage of this approach is that it is very quick and efficient
and has the ability to reach Kenyans in the diaspora. The Taskforce
Report of the Taskforce on Pyramid Schemes
115
proposes that an expert may be consulted for purposes of designing and
launching of the appropriate website.
8.2.11 Others
The Taskforce explored other mechanisms which have the potential to
create awareness. Some of these other strategies are sector specific i.e they
can only be applied to target members of the public in a particular sector,
for instance co-operative organizations and Government Ministries. These
methods for public awareness include member education days for members
of co-operative societies, Ministerial staff trainings for government
employees, public awareness messages during the A.S.K shows and
exhibitions.
8.3 Conclusion
8.3.1 Resource Mobilization
Public awareness is an exercise that requires a huge amount of resources
in terms of finances. The extent to which public education can be
conducted will to a large extent be determined by the availability of
resources. The Taskforce is of the view that a funding strategy to be used
during mobilization of funds be developed. It is advised that funds may
be sourced from the Government and other key stakeholders and donors
who may wish to contribute.
(i) Logistical issues
Due to the huge number of members of the public targeted, it
is noted that logistical issues will pose a major challenge. The
extent to which these logistical issues affect the public
awareness campaigns will be mitigated by the availability of
Report of the Taskforce on Pyramid Schemes
116
funds. They may manifest themselves in different forms which
include but not limited to difficulties in coordinating the
different bodies involved in the exercise and challenges in the
distribution of materials.
(ii) Literacy levels
Some of the methods proposed to be adopted during the public
awareness campaigns require the recipients to have a measure
of literacy. However, the Taskforce notes the illiteracy levels
in the country pose a challenge during the public awareness
campaigns. It is in this context that the Taskforce has
recommended a range of public communication methods
which will ensure that the message reaches both the literate
and illiterate.
8.4 Recommendations
(i) Public Awareness on Saccos
The Ministry of Co-operative Development and Marketing should work in
collaboration with KUSCCO and other National Co-operatives
Organization (NACO’s) to educate co-operative members and the general
public so as to enlighten them on the benefits of SACCO’s and make them
understand and appreciate that SACCOs are viable and sustainable
institutions. This will assist to erase the negative perception created by
pyramid schemes operators who used SACCOs as a conduit to defraud
members of the public.
The Ethics Commission on Co-operatives under the Ministry of Co-
operative Development can be a vehicle through which ethical standards
in Saccos can be promoted in an effort to restore public confidence.
(ii) Counseling Centers
Report of the Taskforce on Pyramid Schemes
117
Due to the negative social and economic effects occasioned by the
activities of pyramid schemes which included; suicides, broken marriages
and loss of livelihood, the Taskforce recommends the use of existing
Counseling Centers countrywide with a view to offering the victims and
help them overcome the trauma. It is recommended that the church should
also play a lead role.
(iii) Public Awareness on Pyramid Schemes Character
Conduct an aggressive public awareness campaign on the negative effects
of pyramid schemes through a multi-sectoral approach involving both
public and private sector.
CHAPTER 9
LEGAL FRAMEWORK IN KENYA
9.1 Introduction
The Taskforce analyzed the existing legislation in respect of laws under which
the pyramid schemes had purported to register and operate.
9.2 Analysis of Existing Legal Framework
The pyramid schemes were operated by companies, Savings & Credit Co-
operatives, welfare associations, Non-Governmental organizations and
Community Based Organizations (CBOs). Reference was made to the
Companies Act, Cap 486, the Co-operative Societies Act, Cap 490, the
Registration of Business Name Act, Cap 499, the Banking Act, Cap. 488 the
Microfinance Act, 2006 the Sacco Societies Act 2008 and other related statutes.
9.2.1 Companies Act
Report of the Taskforce on Pyramid Schemes
118
Registration of companies in Kenya falls under the responsibility of the
Registrar of Companies. Any party requiring to register a company is
compelled to submit duly completed forms accompanied by statements
of the company’s objectives contained in the memorandum of
association. The certificate issued by the Registrar upon registration is
conclusive evidence that the company is duly registered.
It was noted that the objectives of the companies which had pyramid
schemes were so broad that it allowed them to carry out almost any
activity,e.g. Sasanet Company, Pesanet Company, ACID Company Ltd.
Pyramid schemes that operated as companies were run by directors.
Section 23 of the Penal Code provides that “ where an offence is
committed by any company or other body corporate or by any society,
association or body of persons, every person charged with or concerned
or acting in the control or management of the affairs or activities of such
company, body corporate, society, association or body of persons is
guilty of that offence and liable to be punished accordingly, unless it is
proved by such persons that, through no act or omission on his part, he
was not aware that the offence was being or was intended or about to be
committed, or that he took all reasonable step to prevent its
commission”.
The main limitation of the criminal jurisdiction under this section is the
absence of specific legislation on pyramid schemes. This means that the
directors can only be prosecuted for minor offences like obtaining by
false pretence under the penal code.
9.2.2 Business Names Act
Under the Business Names Act, (Cap 499) of the Laws of Kenya. A
study of the procedure revealed that a name is submitted to the Registrar,
a form containing the particulars of the business is completed and the
Report of the Taskforce on Pyramid Schemes
119
business name is registered upon payment of the requisite fee. Examples
of institutions registered under business name are;
(i) DECI – Capacity Building Entrepreneurship – Registration
Number – 435566 – George Donde – sole proprietor –(See
Annex….21)
(ii) Elitesome Investors
(iii) Denmar Investment
(iv) Sylvia Investment
(v) Bright Vision Products
9.2.3 Co-operative Societies Act
Co-operative Societies are registered under Section 4 of the Co-
operative Societies Act. The Act provides that a minimum of 10 people
can register a society. If the Commissioner for Co-operative
Development & Marketing is satisfied that the provisions of the Act
have been complied with a certificate of registration is duly issued. Co-
operative societies have By Laws which amongst others specify the
common bond and objects of the society.
It has been noted that some schemes disguised themselves as SACCOs.
They recruited any willing investor and conducted business in breach of
their bylaws e.g. Clip, Tujibebe and jitegemee Sacco.
The Taskforce was able to identify weaknesses that may have been
exploited by the schemes as follows;
(i) The registration procedures under the Cooperative Societies Act
do not require strict vetting of those seeking registration. The Act
provides that a certificate of registration can be issued once the
basic requirements are met.
(ii) The Act lacks the necessary provisions to guide deposit taking
SACCOs which offer financial services.
Report of the Taskforce on Pyramid Schemes
120
(iii) Once registered, the SACCOs commence operations immediately.
There is no requirement under the Act to take out a licence as is
the case with companies, or those operating banks under the
Banking Act.
9.3 Steps taken by Ministry of Co-operative Development & Marketing
9.3.1 Enactment of the Sacco Act 2008
The Taskforce appreciates the initiatives by the Ministry of Co-operative
Development to address these weaknesses. Of particular importance is its role
in spearheading the implementation of the Sacco Societies Act, 2008. The
commencement date will be gazetted by the Hon. Minister of Co-operatives
when the necessary structures to operationalize it are put in place.
The hallmark of the Sacco Societies Act is that it provides for the creation of
the Sacco Regulatory Authority. The Authority will be responsible for the
licensing, supervision and regulation of SACCOs. Under Section 23, “no
person shall be allowed to carry out deposit taking business unless such a
person holds a valid licence issued under the Act.” The licensing procedure
under this Act will improve the vetting process before the SACCOs venture into
deposit taking businesses.
Another key ingredient of the Sacco Societies Act is that it creates a Deposit
Guarantee Fund to provide for the protection of members deposits. This fund
will operate in the same way as the Deposit Protection Fund operated by the
CBK which takes care of refund to investors in case the institution collapses.
The Taskforce believes that the Sacco Societies Act will ensure good
governance and safety of depositor’s funds and therefore maintain public
confidence in these institutions.
9.3.2 Study of Registration process for Cooperatives.
The second effort taken by the Ministry of Co-operative Development is the
appointment of Price Waterhouse Coopers in 2007 to undertake a study on how
Registration process of Co-Operative Society can be improved and develop a
Report of the Taskforce on Pyramid Schemes
121
computerized management system. This was done under a collaborative effort
between the Ministry and Financial Sector Deepening (FSD) and FIN Access.
The above instruments should be utilized effectively to guard Cooperative
institutions against infiltration by unscrupulous persons who are out to exploit
the public and not enhance their economic status.
9.4 Offences under Existing Legislation
The Taskforce analyzed the current legal regime and came up with a summary
of offences which may have some relevance to pyramid schemes activities and
which should have been enforced to deal with operators of the schemes.
9.4.1 Under Banking Act
(i) Accepting deposits without a valid licence contrary to Section
16(9) of the Banking Act.
(ii) Carrying on banking business without a license contrary to
Section 3(1)(a) of the Banking Act as read together with Section
3(2).
(iii) Issuing misleading advertisement for deposits contrary to Section
51(1) of the Banking Act.
9.4.2 Under Penal Code
(i) Stealing by directors or officers contrary to Section 282 of the
Penal Code.
(ii) Obtaining by false pretences contrary to Section 313 of the Penal
Code that provides “Any person who by any false pretence and
with intent to defraud, obtains from any other person anything
capable of being stolen or induces any other person to deliver to
any person anything capable of being stolen is guilty of a
misdemeanor and is liable to imprisonment for three years.”
Report of the Taskforce on Pyramid Schemes
122
(iii) Section 315 of the Penal Code further provides that “Any person
who by means of any fraudulent trick obtains from any person
anything capable of being stolen or induces any person to pay or
deliver to any person any greater form of money or goods than he
would have paid or delivered is guilty of a misdemeanor and is
liable to imprisonment for three years.
9.4.3 Under Micro-Finance Act
(i) Section-8 Gives Central Bank powers to inspect premises
where it has reasonable ground to believe a person is carrying
out deposit taking business contrary to the provisions of the
Act.
(ii) Section-4(2) offence to carry out deposit taking Miro-Finance
business without a licence.
9.5 Shortcomings of Existing Legislation
The Taskforce after analyzing the current legislation was able to detect
inadequacies that diluted the efficacy of these laws. These deficiencies are
important as they form the basis upon which some of the recommendations
have been made;
(i) The absence of specific statutory provisions prohibiting the activities and
operations of pyramid schemes in Kenya.
(ii) The existing law does not define pyramid schemes. Section 77(8) of the
Constitution provides “that no person shall be convicted of a criminal
offence unless that offence is defined and a penalty thereof prescribed.”
It follows therefore that one can only be charged in a court of law with a
known offence.
(iii) The punishment prescribed for the offences with which the perpetrators
can be charged under the existing legislation are very lenient and
outdated as the effect of pyramid schemes is grave and can bring down a
whole economy of a country. The penalties imposed make it easy for the
perpetrators to engage in promotion of pyramid schemes as they are
aware that they will be able to clear any penalties that may be imposed.
For instance Section 49 of the Banking Act imposes a fine not exceeding
Kshs. 100,000 for institutions accepting deposits without a valid licence.
Report of the Taskforce on Pyramid Schemes
123
(iv) The absence of clear government policies prohibiting the operations of
pyramid schemes in Kenya and the mechanism of recovering the assets
and funds lost in through pyramid schemes.
(v) There has been a slow pace in enacting and implementing legislations for
example the Proceeds of Crime and Anti Money Laundering Bill 2008
was proposed to parliament to provide for the offence of money
laundering and to introduce measures for combating the offence to
provide for the identification, tracing, freezing seizure and confiscation
of the proceeds of crime. However, due to the slow process of
legislating the bill has not been enacted into law.
(vi) Weak supervision and laxity on law enforcement agents to effectively
enforce current legislation.
The current legal environment provides a breeding ground for the organizers of
pyramid schemes and other financial scams who take advantage of apparent
loopholes in the legal, regulatory and supervisory framework.
A case in point to illustrate the inadequacy of the current legal frame work is in
the case of Sylvia Investments (Criminal Case No. 1810 of 2006) Mr.
Michael Waweru Chege was charged with the offence of transacting financial
business without a licence contrary to section 3(2) of the Banking Act. In this
matter, the accused who was the sole proprietor pleaded guilty and was fined
Kshs. 50,000. (See Annex 17) In other jurisdictions, one would pay a hefty fine
which is prohibitive. The money which was held in that same account was
released to be refunded to the investors .From our investigations a total of Ksh
4,696,400 is still being claimed by victims an indication the money was not all
refunded.
9.6 Recommendations
9.6.1 Amendment to the Penal Code
Immediate amendment to the Penal Code (Cap 63) as short-term
measures to include the following;
(i) Definition of pyramid scheme
(ii) Prohibition of pyramid scheme
(iii) Prohibition against inducement
(iv) Enhanced penalties and stiffer custodial sentences.
Report of the Taskforce on Pyramid Schemes
124
(v) Criminalize participation into the schemes by investors.
9.6.2 Enactment of on Anti-pyramid schemes legislation
Enactment of an Anti-Pyramid Schemes legislation within one year to
handle the following matters;
(i) Definition of pyramid schemes and promoters.
(ii) Criminalize the pyramid scheme transactions that facilitate the
commission of fraud by the proprietors and participants.
(iii) Stiffer penalties and custodial sentences to be imposed. We could
borrow a leaf from the United States’ Madoff case where the
mastermind of pyramid schemes was given a custodial sentence of
150 years.
(iv) Criminalize activities carried out by promoters of pyramid
schemes.
(v) Have provisions giving powers to the minister concerned to
issue cease and desist order where an institution is suspected of
carrying out pyramid activities.
(vi) To make participation in pyramid promotional scheme a
misdemeanor. This will discourage the public form rushing to
participate in the schemes knowing it to be an offence
(vii) Establishment of Anti-pyramid schemes Authority to ensure
implementation of the provisions of the Act.
9.6.3 Criminal Prosecution
The Attorney General (AG), under the existing legal system, institutes
immediate criminal prosecution of all directors/ proprietors/officials
who were engaged in pyramid schemes activitie
9.6.4 Amnesty from prosecution
Report of the Taskforce on Pyramid Schemes
125
Amnesty from prosecution be considered for directors/
proprietors/officials or other persons willing to refund back investors’
funds within one hundred and twenty (120) days.
9.6.5 Operationalise the Sacco Act
The SACCO Act which is yet to be operationalised be fast-tracked by the
Minister for Co-operative Development and Marketing by gazetting the
commencement date and establish the SACCO Regulatory Authority.
This will ensure strict supervision of the SACCOs.this is in recognition
of the fact that out of the 270 institutions involved 17 of them were
registered under Co-operative Societies Act.
9.6.6 Civil Proceedings
Institution of Civil proceedings be taken up against the perpetrators/
proprietors/officials of the schemes to recover the funds..
9.6.7 Policy Framework
A policy framework should be created under the guidance of the CBK to
guide financial institutions with a view to enabling them identify pyramid
related schemes.
9.6.8 Legal Aid
Provide legal Aid to the victims who lost their assets/funds in the
schemes by partnering with the private sector and Law Society of Kenya.
9.6.9 Enactment of The Proceeds of Crime and Anti-Money Laundering Bill
2008
Enactment of The Proceeds of Crime and Anti-Money Laundering Bill
2008 to be done within six months. This proposed legislation has good
provisions on assets recovery.
Report of the Taskforce on Pyramid Schemes
126
CHAPTER 10
SUMMARY OF RECOMMENDATIONS
The following is the summary of recommendations as they appear in this report;
(i) A Pyramid Scheme Information Center be set up where victims who have not
registered their claims can get opportunity to do so, to enable them be
considered should recovery be made from the property of directors/
proprietors/officials’…………………………………………… ... Page 31
(ii) The immediate setting up of a Standing Committee under the Ministry of Co-
operative Development and Marketing comprising of relevant government
ministries/agencies and private sector. This committee will be responsible for
the following;
a. Monitoring the implementation of the necessary legal framework.
b. Setting up and administration of the Trust Fund.
c. Overseeing the investigation of accounts and tracing of assets.
d. To be responsible for the restitution of recovered assets, if
any………………………………………………………..Page 64
(iii) The Taskforce observes that the government has a duty to safeguard the
interests of its citizens. We recommend the formation of a Judicial
Commission to undertake further investigations aimed at tracing funds and
assets for restitution to investors. ………………………………..…Page 64
(iv) A Trust Fund be set up under the Ministry of Co-operative Development and
Marketing to manage funds and properties recovered. The members of the said
fund should include other relevant government ministries/agencies and
reputable Kenyans.………………………………………….… Page 64
(v) Investigations/ restitution;
Report of the Taskforce on Pyramid Schemes
127
(a) The CID to complete investigations on Bank Accounts within six (6) months.
(b) The CID to undertake and complete tracing of assets acquired from
proceeds of pyramid schemes operations within one year with a view of
recovery and restitution.
(c) The government to enlist the assistance of foreign missions/ governments
where the perpetrators may have invested proceeds from pyramid schemes
activities.
(d) Parliament to fast-track the enactment of Mutual Legal Assistance Bill that
was published on 18th May, 2009. ….……………… ... Page 64
(vi) Frozen Accounts-The CBK issues a public statement on the current status of
all frozen accounts related to pyramid schemes…………………..Page 65
(vii) The departments that registered institutions through which the pyramid schemes
carried out their activities should apply more stringent evaluation procedures
before registration to authenticate their legitimacy, analyze their objectives and
vet the directors/ officials…………………………...Page 82
(viii) All government agencies charged with the registration of institutions whose
activities were associated with pyramid schemes should institute stringent
measures to strengthen their supervision mechanism by being more vigilant in
invoking their investigation and supervisory powers to ensure that such
institutions operate within their prescribed
objects……………………………………………………………….Page 83
(ix) KACC alleged that their mandated restricts its operations to public institutions
only. The Taskforce recommends that its mandate should be extended to
include matters of national concern that though involving private institutions
and individuals impacted negatively to the public, for example the pyramid
scheme saga………………………………….Page 83
(x) Law enforcement agencies to exercise vigilance in their duty to avert
occurrence of pyramid schemes operations in future………………....Page 83
(xi) The Ministry of Co-operative Development and Marketing should work in
collaboration with KUSCCO and other National Co-operatives Organization
Report of the Taskforce on Pyramid Schemes
128
(NACO’s) to educate co-operative members and the general public so as to
enlighten them on the benefits of SACCO’s and make them understand and
appreciate that SACCOs are viable and sustainable institutions. This will assist
to erase the negative perception created by pyramid schemes operators who
used to view SACCOs as a conduit to defraud members of the public.
The Ethics Commission on Co-operatives under the Ministry of Co-operative
Development can be a vehicle through which ethical standards in Saccos can be
promoted in an effort to restore public
confidence…………………………………………………………...Page 93
(xii) Due to the negative social and economic effects occasioned by the activities of
pyramid schemes which included; suicides, broken marriages and loss of
livelihood, the Taskforce recommends the use of existing Counseling Centers
countrywide with a view to offering the victims hope how to overcome the
trauma, where the church should play a leading
role.………………………………………………………………….Page 93
(xiii) Conduct an aggressive public awareness campaign on the negative effects of
pyramid schemes through a multi-sectoral approach involving both public and
private sector ……………………………………………Page 93
(xiv) Immediate amendment to the Penal Code (Cap 63) as Short-term measures to
include the following;
a. Definition of pyramid scheme
b. Prohibition of pyramid scheme
c. Prohibition against inducement
d. Enhanced penalties and stiffer custodial sentences.
e. Criminalize participation into the schemes by investors………Page 100
(xv) Enactment of an Anti-Pyramid Schemes legislation within one year to handle
the following matters;
a. Definition of pyramid schemes and promoters.
b. Criminalize the pyramid scheme transactions that facilitate the
commission of fraud by the proprietors and participants.
Report of the Taskforce on Pyramid Schemes
129
c. Stiffer penalties and custodial sentences to be imposed.
d. Criminalize activities carried out by promoters of pyramid schemes.
e. Have provisions giving powers to the minister concerned to issue
cease and desist order where an institution is suspected of carrying
out pyramid activities.
f. To make participation in pyramid promotional scheme a
misdemeanor. This will discourage the public form rushing to
participate in the schemes knowing it to be an offence
g. Establishment of Anti-pyramid schemes Authority to ensure
implementation of the provisions of the Act……………Page 101
(xvi) Criminal proceedings- Attorney General (AG), under the existing legal
system, institutes immediate criminal prosecution of all directors/
proprietors/officials who were engaged in pyramid schemes activities
……………………………………………………………………..Page 101
(xvii) Amnesty from prosecution be considered for directors/proprietors/officials or
other persons willing to refund back investors’ funds within one hundred and
twenty (120) days……………………………………………..Page 102
(xviii) The SACCO Act which is yet to be operationalised be fast-tracked by the
Minister for Co-operative Development and Marketing by gazetting the
commencement date and establish the SACCO Regulatory Authority. This will
ensure strict supervision of the SACCOs. This is in recognition of the fact that
out of 270 institutions involved 17 of them were registered under Co-operative
Societies Act. …………………………………….....Page 102
(xix) Civil proceedings -Institution of Civil proceedings be taken up against the
perpetrators/ proprietors/officials of the schemes to recover the
funds………………………………………………………………………Page 102
(xx) A policy framework should be created under the guidance of the CBK to guide
financial institutions with a view to enabling them identify pyramid related
schemes……………………………………………………………Page 102
Report of the Taskforce on Pyramid Schemes
130
(xxi) Provide legal Aid to the victims who lost their assets/funds in the schemes by
partnering with the private sector and Law Society of
Kenya…………………………………………………………..…..Page 102
(xxii) Enactment of The Proceeds of Crime and Anti-Money Laundering Bill 2008
to be done within six months. This proposed legislation has good provisions on
assets recovery…………………………………………..Page 103
Report of the Taskforce on Pyramid Schemes
131
ANNEX 1
Gazette Notice No. 264 & 4068 0f 2009
The Co-operative Societies act (Cap 490)
It is notified for general information that the Minister for Co-operative Development and Marketing has appointed Hon. Francis Nyenze (Chairman David Odhiambo Oduol Sakina Adan (Mrs.) Zebedeyo Onguti Harold Rurigi Mwai Joseph Kibowen Kibiwot Amb. John Mukuriah Machanja Ligabo (Dr.) Emily Manga Mwachoo (Mrs.) Philip Gichuki (Secretary) as members of the Task Force on pyramid schemes for a period of three (3) months from the date of publication of this notice. Dated the 14th January, 2009
Joseph W. Nyagah, EGH, M.P.
MINISTER FOR CO-OPERATIVE DEVELOPMENT AND MARKETING
Gazette Notice No. 4068 The Co-operative societies act
(Cap. 490)
Corrigendum In Gazette Notice No. 264 of 2009, amend the expression printed as for a period of three (3) months from the date of publication of this notice to read “for a period of ninety 90) working days from 9th February 2009” Dated the 23rd April, 2009.
Joseph W. Nyagah, EGH, M.P.
MINISTER FOR CO-OPERATIVE DEVELOPMENT AND MARKETING
Report of the Taskforce on Pyramid Schemes
132
ANNEX 2
(a) List of Institutions invited via Newspaper Advertisements
DATE NAME OF INSTITUTION TIME
Monday
4th May, 2009
1. Kenya Business Community Sacco Ltd. 2. Sylvia Investments Ltd. 3. Capital Investors Sacco Society Ltd. 4. Circuit Investors Ltd. 5. Pasanet Investments Ltd. 6. Chrisall (Christ for all) Winners 7. Africa Gender & Youth Affirmative
Network Foundation 8. Balozi Ventures 9. Cordinel Investments 10. Deluxe 11. Elitesome Investment Programme 12. Executive Greens 13. Golden Credit 14. Kenya Multipurpose Business
Entrepreneurs. 15. Mantle Prestige Investment
9.30 – 1.00 p.m.
16. God’s Ideal Capacity Building 17. Liberty Products 18. Magnon Investments 19. Money Plant Family for Needs 20. Life and Hope 21. Natural Precious 22. New Aframe 23. Prosper Bond 24. Smart Welfare Association 25. Supanet Investment 26. Triple Super 27. Victory Sound Waves International Ltd.
2.00 p.m. – 4.00 p.m.
Tuesday
5th May, 2009
1. Development Entrepreneurial and Community Initiative (DECI)
2. Tujibebe Investment Co-operative Society Ltd.
3. Tujibebe Sacco Society Ltd. 4. Abib Sacco Society Ltd.
9.30 a.m. – 1.00 p.m.
Report of the Taskforce on Pyramid Schemes
133
5. Abib Investments Co-operative Society 6. Earning Force Kenya Ltd. 7. Better Life 8. Christian Family Fellowship 9. Christian Family Investment 10. Christian Family Ministry, Kenya 11. African Christian 12. Brant International Investment Ltd. 13. Coskim Care Services Youth Group 14. Denmar Investment 15. Fain Investments
16. Goordian 17. Ideal Investors 18. Justine Traders 19. Kuriji Economic Empowerment
Programme 20. La-viva 21. Paymac 22. Sirgen Investment 23. The National Welfare 24. Telstat 25. Sheraton Charity Foundation 26. Tumanini 27. Yicado Ministries 28. Prosper Investment
2.00 p.m. – 4.00 p.m.
Wednesday
6th May, 2009
1. Clip Investment Co-operative Society Ltd. 2. Kenya Christian Community Sacco
Society Ltd. 3. Faith Care Sacco Society Ltd. 4. Coped International Ltd. 5. Women Poverty Eradication Programme 6. Golden Life Concept 7. Poverty Eradication of Programme 8. Addler Yetu Community Initiative 9. Breda Investment 10. Bright Horizons 11. Bright Vision Products 12. Circle Net 13. Doken Investment 14. Doken Investment Pamoja Revolving
Fund 15. FICCA International
9.30 a.m. – 1.00 p.m.
Report of the Taskforce on Pyramid Schemes
134
16. GLO – PAC Investment Ltd. 17. Golweb Investment Ltd. 18. Money Plant Investment 19. Middle Entrepreneur 20. Loxex 21. Queens in Bloom Consult 22. Revolutionary International Investment 23. Ripe Investment Plan 24. Taifa Options Micro-finance 25. Systematic 26. Universal Premium 27. Timisha Investment 28. Rehoboath Stock
2.00 p.m. – 4.00 p.m.
Thursday
7th May, 2009
1 Sasanet Investment Co-operative Society Ltd.
2 Acid Ltd 3 Spell Sacco Society Ltd. 4 Povera Investment Ltd. 5 Winners Choice Investment 6 Sky High Investment & Marketing 7 Umoja Pamoja 8 Amity Investment 9 Anthrop 10 Bureau for Development Support Services 11 Busara Initiative 12 Business Initiative 13 Clout 14 Durally Consultants 15 Dominators 16 First Asian Securities Ltd.
9.30 a.m. – 1.00 p.m.
17. Greater Portion Investment Ltd. 18. Kibec Investment 19. Liana Ltd. 20. Mantle Plant Investment Ltd. 21. Plateau Investments Ltd. 22. Royal Fortune Systems Ltd. 23. Shine 24. Sparkle Impressions Enterprise Ltd. 25. Prestige Economic Ventures 26. Peel Investors 27. Phone World Ltd.
2.00 – 4.00 p.m.
Report of the Taskforce on Pyramid Schemes
135
Friday
8th May, 2009
1. Jitegemee Entrepreneurs Sacco Society Ltd.
2. Mont Blanc Afrique (PLC) Ltd. 3. Kenya Insured Community Sacco Society
Ltd. 4. Global Sacco Society Ltd. 5. Family In Need Organization (FINO) 6. Good Living Enterprenuers 7. Canaan Multipurpose Co-operative
Society Ltd. 8. Anti-Poverty Association of Kenya 9. Cabos Credit Company 10. Canan Investment 11. Chase Investment Kenya Ltd. 12. Cyben Investment 13. Empowerment 14. Evaluate 15. Gelian
9.30 a.m. – 1.00 p.m.
16. Morning Glory 17. National Peasants League 18. New Horizon Investment 19. Three Star Business Initiative 20. Mwisho wa Wote 21. Real Aframe 22. Poor Dated Acceptance 23. Penta Investment 24. Silver Ventures 25. Tulima Investment 26. Ushirikiano 27. Quest International
2.00 p.m. – 4.00 p.m.
Report of the Taskforce on Pyramid Schemes
136
ANNEX 2
(b) Directors/Partners/Management Committee Interviewed
NO. NAME. INSTITUTION POSITION
1. Geofrey N Njang`ombe MOCD & M Auditor /Liquidator
2. Raphael Maseki MOCD & M Auditor /Liquidator
3. F. M. Maina MOCD & M Co-operative Officer
4. Peter Onyango Bonyo Onyango Bonyo & Associates Lawyer
5. Jamlek M Mbuko Business Tally Africa DECI (Manager Embu)
6. Robert Mwangi Sidondo Mwangi Advocate Spouse to Mwangi
7. Peter Mwangi Jimnah Kenya Business Client
8. Sammy Gitau Sasanet Company Ltd
9. Dean Njoka Sasanet Company Ltd
10. Alex Thiongo Sasanet Company Ltd
11. Dean Njoka Saanet Co-operative Committee Member
12. Olubayi Ajaa Ajaa Olubayi & Co. Advocates Advocate
13. Donald Okonjo Mwagambi & Okonjo Advocates Advocate
14. Njoroge Wachira Njoroge Wachira & Co. Advocates Advocate
15. C. O Kanyangi Kanyangi & Co. Advocates Advocate
16. Adima Keya Kanyangi & Co. Advocates Advocate
17. Samuel Ambundo Kanyangi & Co. Advocates Advocate
18. Francis Omurwa Kenya Business Sacco Chairman
19. Stephen Naibei Tumaini Director
20. Martha Nyangao Tumaini Director
21. Elizabeth Muchira Tumaini Director
22. Nelson Murimi FFICCA International Director
23. Mercy Githinji FFICCA International Member
24. Edward Nyakeriga Bright Visions Products Advocate
25. Zachariah B Shimechero ACID – CBO Kakamega Chairman
26. Paul Onyango Anti Poverty Chairman
27. Richard Matagaro Anti Poverty Coordinator
28. Caleb Nyang`au Anti Poverty Organizing Secretary
29. Morris Oduor CESRA Kenya Program Coordinator
30. Janet Ilot CESRA Kenya Charity Analysis
31. Dickson N Sarayi Acid Trust Coordinator
32. Verdiana Augustine Tanzania High Commission Minister Counselor
33. Sammy Gitau Sasanet Co-operative Committee Member
34. Isabella Masinde CLOUT C.E.O
35. Truphena Maloba Programme Coordinator C.E.O
36. Mary Mukasa Chairlady CLOUT Chairman
37. S. C. Ndungu Mantle Plant Investment Co. Ltd Advocate
38. Morris Kimuli B. M. Musau & Co. Advocate
39. V. Rajasekhan (RAJ) Qi Ltd Legal Counsel
40. Felix Kioko B. M. Musau & Co. Legal Counsel
41. Klaus Holderbaum Quest Net Advisor
Report of the Taskforce on Pyramid Schemes
137
ANNEX 3
SCHEDULE OF PUBLIC HEARINGS
DATE VENUE TIME
Nairobi Province
24-26th February, 2009 Railway club 10.00 a.m.
Eastern Province
3rd – 4th March, 2009 Meru- Kamunde Hall 10.00 a.m.
5th March, 2009 Embu – Emco Hall 10.00 a.m.
Central Province
10/3/09 Nyeri – YMCA 10.00 a.m.
11/3/09 Murang’a – Mugama union Hall
10.00 a.m.
12/3/09 Thika - St. Patrick Catholic Hall
10.00 a.m.
Nyanza/Western
17/3/09 Kisii Coop Union Grounds 10.00 a.m.
18/3/09 Kakamega – Kakamega Country Council Hall
10.00 a.m.
19/3/09 Bungoma – Bungoma County Council Hall
10.00 a.m.
20/3/09 Kisumu – Nasellica Hotel 10.00 a.m.
Rift Valley Province
25/3/09 Nakuru – Nakuru A.C.K Hall 10.00 a.m.
26/3/09 Eldoret – Municipal Hall 10.00 a.m.
Coast Province
31/3/09 Mombasa – Woget Centre 10.00 a.m.
2nd April Malindi – County Council Hall 10.00 a.m.
Report of the Taskforce on Pyramid Schemes
138
ANNEX 4
LIST OF WRITTEN SUBMISSIONS RECEIVED
NAME OF INSTITUTION TITLE OF DOCUMENT
C.B.K. Brief of Pyramid Schemes
L.S.K. Aide Memoire: Taskforce on Pyramid Schemes
K.U.S.C.C.O. Impact on Saccos
K.A.C.A. Report on pyramid schemes received by the
commission.
C.I.D. Brief on cases investigated by BFID
P.S.C.S. List of complainants forwarded to PSCSk
Report of the Taskforce on Pyramid Schemes
139
ANNEX 5
LIST OF PYRAMID SCHEMS IN KENYA AND AMOUNT INVESTED
NAME OF SCHEME NUMBER
OF
INVESTOR
S
AMOUNT
1 DECI INVESTMENTS 93,485 2,405,518,832.00
2 CLIP INVESTMENTS 5,846 1,993,866,422.00
3 KENYA BUSINESS COMMUNITY SACCO 921 780,698,218.00
4 SASANET INVESTMENT 629 739,948,412.00
5 JITEGEMEE INVST SACCO 3,828 494,401,600.00
6 CIRCUIT INVESTMENTS 1,392 348,943,103.00
7 FAMILY IN NEED ORGANISATION 4,580 157,280,553.00
8 GLOBAL ENTREPRENEURSHIP 9,206 139,006,632.00
9 SPELL INVESTMENT 544 120,326,860.00
10 MONT BLANC AFRIQUE 774 82,834,000.00
11 AMITY INVESTMENT 979 81,838,656.00
12 SMART WELFARE 1,125 68,903,070.00
13 ASSISI & LEVERAGE OFFERING 649 65,174,000.00
14 PESANET INVESTMENT 3,371 48,727,506.00
15 POVERA INVESTMENTS 2,140 43,360,100.00
16 CAPITAL INVESTMENT AGENCY 324 39,221,450.00
17 EXCELLER NETWORK INTER 762 30,951,042.00
18 MANTLE PLANT INV 831 23,474,842.00
19 GOLDEN LIFE CONCEPTS LTD 814 21,430,760.00
20 ELITSOME INVESTMENT 136 21,186,400.00
21 EARNING FORCE (K) LTD 84 20,179,600.00
22 KEEP 623 20,027,300.00
23 TELSTST INVESTMENT 254 19,052,100.00
24 FFICA INTERNATIONAL 657 18,252,531.00
25 LAVIVA INVESTMENT 355 15,295,082.00
26 AFRICAN CHRISTIAN IN DEV.(ACID) 891 14,683,790.00
27 SHARESTONE CHARITY FOUNDATION 915 14,187,096.00 28 CHRISTIAN FAMILY MINISTRY OF KENYA 1,615 13,502,879.00
29 CAPITAL BUSINESS COMMUNITY 204 12,894,300.00
30 DENMAR INVESTMENTS 467 11,994,391.00
31 BRIGHT VISION PRODUCTS 656 10,734,800.00
32 NEW HORISONS LTD. 317 10,712,700.00
33 FREER INVESTMENT 215 10,657,760.00
34 KUMEKUCHA KENYA 266 9,767,313.00
35 KENYA CHRISTIAN COM. SACCO 237 9,466,000.00
36 SYMATEC 18 8,831,500.00
37 MAGNON INVESTMENT 173 8,455,900.00
38 WINNER CIRCLE 6 7,971,296.00
39 ABIB SACCO SOC. LTD 253 7,949,300.00
40 DEP DEV 26 7,605,700.00
41 BRAT 31 6,331,000.00
42 SYLVIA INVESTMENT 311 6,311,400.00
43 SHALOM 460 5,623,100.00
Report of the Taskforce on Pyramid Schemes
140
44 MARKET AGE 17 5,486,745.00
45 JORISTINE TRADERS 30 5,316,000.00
46 WINNERS CHOICE INV. 51 4,767,000.00
47 SKY HIGH INVESTMENT & MARKETING 77 4,445,100.00
48 PROSPER INVESTMENTS 339 4,296,159.00
49 SMART WELFARE ASSOCIATION 76 4,291,400.00
50 THREE STARS 51 4,232,000.00
51 REHOBOTH STOCK AGENCIES 528 3,906,450.00
52 NATIONAL PEASANTS 157 3,621,799.00
53 UMOJA 44 3,591,700.00
54 CORDNEL INVESTMENT 82 3,440,700.00
55 THE DANIEL COMPANY 19 3,398,000.00
56 KENYA AKIBA MICROFINANCE 16 3,349,540.00
57 DOKEN INVESTMENT 222 3,264,800.00
58 JEBEZI 2 3,200,000.00
59 RANGUA INVESTMENT 27 3,117,700.00
60 KIBEC INVESTMENT 134 3,110,600.00
61 MONEY PLANT INVESTMENT 89 2,994,300.00
62 RIPE INVESTMENT PLAN 234 2,915,700.00
63 TUJENGE INVESTMENTS 53 2,708,900.00
64 KENYA MULT PURPOSE 5 2,690,000.00
65 THE CO-PARTNERS ALLIANCE 15 2,622,544.00
66 QUEENS IN BLOOM 55 2,494,000.00
67 TUJIBEBE SACCO 332 2,437,200.00
68 MORNING GLORY 31 2,411,000.00
69 AFRICAN GENDER & YOUNG DEV. 190 2,362,300.00
70 PLANTEAU 136 2,245,299.00
71 MVULI INVESTMENT 131 2,223,900.00
72 GOLDWEB INVESTMENTS 15 2,135,000.00
73 CRSA 149 2,101,830.00
74 ADLER YETU 271 1,953,500.00
75 MARKETER PAY SYSTEMS 79 1,835,770.00
76 CYBEN INVST 364 1,768,300.00
77 MANTLE PRESTIGE 21 1,735,500.00
78 LIBERTY PRODUCTS 40 1,653,200.00
79 FIRST ASIAN SECURITIES 2 1,610,000.00
80 ROYAL FORTUNE 26 1,438,800.00
81 CAPITAL BUSINESS INITIATIVE 33 1,408,700.00
82 BUDS 277 1,337,850.00
83 PRESTIGE ECONOMIC VENTURES 42 1,275,800.00
84 STEP AHEAD CHRISTIAN 124 1,148,900.00
85 CLOUT CENTRE 1,122,600.00
86 TIMISHA INVESTMENT 4 1,100,000.00
87 UNIVERSAL PREMIUM INVESTMENT 50 1,025,500.00
88 GREATER PORTION 55 970,700.00
89 BETTER LIFE SELFHELP GROUP 19 873,500.00
90 REAL AFRAME 48 818,900.00
91 STRATEGIC 13 813,000.00
92 CANAAN 9 802,700.00
93 CHRISTIAN HOPE 8 782,000.00
94 THIMBA TRADING CO. 4 760,000.00
Report of the Taskforce on Pyramid Schemes
141
95 SACKET INVESTMENT 3 750,000.00
96 TOLIMA 42 741,500.00
97 TUMAINI FAMILY 4 732,100.00
98 SILVER INVESTMENT 22 728,700.00
99 FAIN INVETSMENT 27 724,000.00
100 CHRISTALL WINNERS 109 692,215.00
101 SPARKLE IMPRESSIONS 6 660,000.00
102 PROCARE 27 652,500.00
103 PAYMAC 31 647,200.00
104 AFRICAN CHRISTIAN DEVELOPMENT 9 625,400.00
105 BRIGHT HORIZON 62 621,500.00
106 DORALLY 4 620,400.00
107 PLUS WAVE 10 620,400.00
108 ANUITY 3 612,000.00
109 SWOP 136 610,700.00
110 FINAC 1 600,000.00
111 CABOS CO. LTD 37 597,600.00
112 VICTORY WAVES 27 557,600.00
113 THE NATIONAL WELFARE 37 531,700.00
114 REGIN INVESTMENT 71 518,900.00
115 WITTY INVENTIONS 150 501,850.00
116 SISO 36 500,000.00
117 REVOLUTIONERY INTERNATIONAL 16 491,900.00
118 JACHA INVESTMENT 39 491,800.00
119 SKY NIGHT 2 487,500.00
120 LIVE LINK 17 485,050.00
121 CHASE INVESTMENTS 2 470,000.00
122 IDEAL INVESTMENT 21 462,000.00
123 ANTHROP 30 459,800.00
124 GOOD LIVING ENT. 18 449,500.00
125 LOXEX INVESTMENT 23 444,500.00
126 AMUKA INV 21 440,200.00
127 LIFE & HOPE INVESTMENT 32 431,200.00
128 PEFA DEV. PROG./COPED INT. 33 403,656.00
129 AFRICAN GENDER & YOUTH AFFIRMATION NET WORK 21 399,052.00
130 FAMILY HOPE 41 397,200.00
131 SANJI 35 365,400.00
132 QUEST INVESTMENT 8 360,000.00
133 DYNAMIC 29 307,700.00
134 GLOW-PAC 2 300,000.00
135 JUNOE SMALL TRADERS 2 300,000.00
136 WISE PROVIDENCE 3 260,000.00
137 SIRGEM 34 259,700.00
138 HANDY AGENCY 78 258,600.00
139 BUREAU 12 249,645.00
140 SETLIGHT 4 215,800.00
141 TAIFA OPTION MICRIFINANCE 15 200,978.00
142 DEV. EMPOWERING OF PERSONS 3 200,000.00
143 GIANT OPTION 1 200,000.00
144 HIGH RANK 2 200,000.00
145 WESPUTA 52 197,850.00
Report of the Taskforce on Pyramid Schemes
142
146 USHIRIKIANO 17 192,400.00
147 STESCO 1 180,000.00
148 W-ZION TRUST 6 172,200.00
149 TUJITEGEMEE 3 172,000.00
150 REAL AFRIQUE ENTERPRISE 4 170,200.00
151 EXECUTIVE GREENS 7 169,600.00
152 PROLINK 15 162,200.00
153 STEP ONE 2 153,000.00
154 GARDEN LIFE 11 139,300.00
155 SMART TRADERS ASSOCIATION 4 135,000.00
156 SUMDUL 9 133,000.00
157 PRIDE 10 126,373.00
158 LEADING RESORTS 3 125,000.00
159 PROGRESSIVE INVESTMENT 11 119,100.00
160 DELUXE INVESTMENT 9 117,900.00
161 NIPLE SKY 12 112,850.00
162 ZONE HOLDING & CREDIT 6 112,475.00
163 FARAHA INVESTMENT 16 108,000.00
164 PENTA SCHEME INV. LTD 7 100,400.00
165 CREDIBLE ASSETS 13 99,800.00
166 BUSARA CAPITAL 9 91,400.00
167 GESOKO 2 90,000.00
168 PAT-NET AFRICA 14 88,450.00
169 GOLD FIELD 2 80,000.00
170 FULLSCALE BUSINESS TRUST 1 78,500.00
171 REAM RESCUE 7 75,000.00
172 LUNAR 14 66,000.00
173 SKYLINK 4 65,000.00
174 GRUCOBI 1 64,000.00
175 COMMUNITY RESTORATION 8 62,602.00
176 FCODE 32 62,510.00
177 HORIZON INVESTMENT 3 60,000.00
178 KEBEC 2 60,000.00
179 PEEL INVESTMENT 6 59,400.00
180 MIKONO PAMOJA 8 54,000.00
181 BIDII 4 52,200.00
182 INVEST. ELDORET 6 52,000.00
183 BALOZI INVESTMENT 6 50,000.00
184 FAITH CHARITY 7 49,000.00
185 RAISING STANDARDS 12 46,700.00
186 APAK 4 45,900.00
187 BRIGHT INVESMTNETS AND CREDIT TRADING 1 45,000.00
188 SMART ENTERPRISES 1 45,000.00
189 FORTUNE FUTURE 2 44,300.00
190 AFRICA INT 2 41,400.00
191 GENESIS 2 40,200.00
192 IFED (K) 2 39,800.00
193 GOLDEN CREDIT LIMITED 1 39,000.00
194 COPED INT. 1 36,500.00
195 PEOPLE 3 31,499.00
196 NJIIWE INV 1 28,300.00
Report of the Taskforce on Pyramid Schemes
143
197 ALDER YETU 3 28,100.00
198 ALPHA 5 25,450.00
199 GOLDNET 2 22,900.00
200 SMEP 2 21,350.00
201 ALL CORNERS 5 21,000.00
202 D.I.P.R.F 2 20,400.00
203 FAN INVESTMENT 1 20,400.00
204 AFRIQUE 20,200.00
205 POVERTY ERADICATION PROGRAMME 1 20,000.00
206 REAL INVESTORS 3 20,000.00
207 WANYEE MOTORS 1 20,000.00
208 WOMEN POVERTY ERADICATION EDU. ORG 4 20,000.00
209 MONEY BAG 3 19,000.00
210 SUPERNET 4 19,000.00
211 COMMUNITY DEVELOPMENT ORGANISATION 4 18,900.00
212 CYBER INVESTMENT 2 17,200.00
213 HOPE AFRICA 1 16,200.00
214 GOD'S IDEA CAPACITY 2 16,000.00
215 PROPER 1 15,400.00
216 GLORY INITIATIVE 12 14,000.00
217 KOSME SCHEME 1 14,000.00
218 GITGEN 1 13,200.00
219 MT. REGION INVESTMENT 4 12,100.00
220 POWER CLUB/SUPREME 1 12,000.00
221 YAANGA GENERAL AGENCIES LTD 1 10,300.00
222 CO-PARTNERS 1 10,200.00
223 DAMOFA 1 10,000.00
224 HARCULES COMMUNTY 1 10,000.00
225 A & K 6 9,300.00
226 NJORO RESOURCE CENTRE (ADOK TINTO) ACID 1 9,300.00
227 PEACE OFF FOR CHRIST 4 9,200.00
228 DOMINATIONS INVESTMENT 1 8,500.00
229 COMMUNITY ALLIANCE 1 8,000.00
230 TRIPPLE SUPPER 1 8,000.00
231 EQUITY LINK LTD 1 7,742.00
232 PEASANT INVESMTNET 2 7,000.00
233 INVESTMENT MASTERS 6 6,700.00
234 COSKIN 6,500.00
235 K.K & FADY 1 6,000.00
236 TURI CIRCLE OF LIGHT 1 6,000.00
237 YASULWE SELF HELP GROUP 1 6,000.00
238 MAVUNO POINT 2 5,200.00
239 SEASON OF LAUGHTER 1 5,100.00
240 ASKEN 1 5,000.00
241 DEULEX 1 5,000.00
242 MORDEN DAYS LIVING 1 5,000.00
243 PENA SCHEME 1 5,000.00
244 PROGRESS 1 5,000.00
245 ADVERT. ONLINE 1 4,610.00
246 LINK ARICA 1 4,500.00
247 TAANGA 1 4,000.00
Report of the Taskforce on Pyramid Schemes
144
248 NYOUTH 1 3,920.00
249 AGYAN 1 3,500.00
250 BROAD INVESTMENT 1 3,200.00
251 JOY INVESTMENT 1 3,000.00
252 DAMIKO INVESTMENTS 1 2,700.00
253 KALAMKA INVESTMENT 2 2,500.00
254 MAPATO INVESTMENT 1 2,500.00
255 FAIDI 2,250.00
256 BRUCOBI 4 2,000.00
257 ENID LTD 2,000.00
258 GOLDROWN SELFHELP GROUP 1 2,000.00
259 GREAT VISION INVESTMENTS 2 2,000.00
260 IMWA INVESTMENTS 1 2,000.00
261 MIDDLE ENTREPRENEUR INVESTMENT 1 2,000.00
262 ROBIN 1 2,000.00
263 TEDDY BEAR BASE 1 2,000.00
264 TRANSACTION NETWORK 1 2,000.00
265 WESTERN SMALL INDUSTRIES INVESTMENT 1 1,500.00
266 COOPERATIVE ALLIANCE 2 1,400.00
267 SHARPENER 1 1,200.00
268 BELCOM 1 1,000.00
269 MAUTITE INVESTMENT 1 1,000.00
270 EAEN BRIDGE 1 350
271 OTHERS 701 46,483,493.00 TOTAL 148,784 8,178,737,402.00
Report of the Taskforce on Pyramid Schemes
145
ANNEX 6 (a)
NAMES OF DIRECTORS/OFFICIALS OF PYRAMID SCHEMES OBTAINED FROM REGISTRAR OF
COMPANIES COMPANIES NAMES
INSTITUTION DIRECTORS ADDRESS NATIONALITY REGISTERED OFFICE
1 Sasanet Investors Michael Chege Njoroge Sammu Gitau Njoroge`
P.O. Box 10845-00100, Nairobi Kenyan
2 DECI – Capacity Empowerment Entrepreneurship Ltd.
George Donde
3 ACID Kenya Company Ltd.
Bishop Aarono Siribaleka V.V. Lule & Col Advocate, P.O. Box 7454-00200 NAIROBI
4 ACK Trust Kenya Isabella Anyona Masinde Dickson Ndeti Sarayi John Muhandji Aaron Siribaleka David Mukisa Peninah Sanyu
P.O. Box 64024-006200 NBI P.O. Box 64024-006200 NBI P.O. Box 478-4-100, Kisumu P.O. Box 2385, Kampala P.O. Box 2107. Kasawo P.O. Box 64020-00620, NRB
5 ACID Trust (Uganda) Unlimited company without shares registered under section 12 of Non-governmental statute 1990 Uganda Constitution drawn by: Saw meeting plot and data base in African Society Objective include – to assist orphans and children
Aaron Siribaleka Judicians Kazanswa Nagada Aida Dorothy David Mukisa Deborah Balemeesi Sanyu Peninah
ACP Cleaning House, Box 23859, Kampala Uganda Money Leaders Alliance Box 2646, Mbale Dorothy Kasamu, Christian Development Centre P.O. Box 21007, Kasawo Dorothy Kasamu, Christian Development Centre P.O. Box 21007, Kasawo P.O. Box 3625, Kampala Self Sustenance Scheme,
Uganda
Report of the Taskforce on Pyramid Schemes
146
Wanjala Alpha Maganga Owori Nassozi Hope
P.O. Box 23859, Kampala ACID Education Savings Bureau, P.O. Box 23859, Kampala ACP – Uganda, P. O. Box 23859,. ACID Kasawo, P.O. Box 21007, Kasawo
6 Pesanet Investments Peminus Njoroge Muiruri Christine Wambushi Thegene Lillian Wanjiku Njoroge
P.O. Box 2195-00200, NBI P.O. Box 58735, Nairobi P.O. Box 2195-00200, NBI
Kenyan Kenyan Kenyan
L.R. No. 209/3847 Development House, Moi Avenue
7 Busara Capital Network Limited
Scholastica Simiyu Peris Wambui Nduta Rhoda Nduly Kitaka
P.O. Box 18517-00100 Kenyan L.R. No. 209/617, Kimathi Street
8 Universal Premium Investments
Christopher Njenga Mbuchu Elizabeth Gathoni Muraguri
P.O. Box 70798-00400, Nairobi Kenyan LR. No. 209/929, Intermark Business Centre
9 Unda Limited Uana Watiri Muriuki Sonal Suryakani
P.O. Box 49594-00100, Nairobi Kenyan LR. No. 209/290/4/1/ The Chancery, Valley Road
10 Phone World Limited Sammy Gitau Njoroge Alec Thiongo Mwangi Mina Sally Owaga
P.O. Box 10845-00100, Nairobi Kenyan LR. No. 209/8663, Maendeleo House, Monrovia Street
11 Taifa Options Micro-Finance Limited
Thuo Mathenge Francis Macharia Mwangi Lucy Nyambura Maina
P.O. Box 400, Nairobi P.O. Box 727, Ruiru P.O. Box 11226-00400, Nairobi
Kenyan LR. No. 209/491A4, Mama Ngina Street
12 Victory Woundwaves Inventions Limited
Lucy Wanjiru Mwangi Willy Mwangi James Wamburu Nyaga Jenniffer Wangari Gachie Grace Nguhi Gitau Joseph Kiiru Chege Edward Mwangi Kanyoro
P.O. Box 5505-00200, Nairobi P.O. Box 494-00600, Nairobi P.O. Box 494-00500, Nairobi P.O. Box 60749-00200 NBI P.O. Box 47133-0110, NBI P.O. Box 439-00300, NBI P.O. Box 18832, Nairobi
Kenyan Kenyan Kenyan Kenyan Kenyan Kenyan Kenyan
L.R. No. 209/11834. Landis Road
13 Empowerment Options Limited
Jomo Gatundu Mildred Muthoni Jome
P.O. Box 11152-00100, Nairobi Kenyan L.R. 14/330, Gitanga Road Lavington
Report of the Taskforce on Pyramid Schemes
147
14 Excellers Network Investments
Morrison Mwichira Muriuki Loise Wanjiru Nyamawi
P.O. Box 186-00502, Nairobi Kenyan House No. A26, Kimathi Estate
15 Royal Fortune Systems Stephen Mukenya Barasa Seravinna Mwende Mwaluka Jane Marete
P.O. Box 22947, Nairobi Kenyan Plot No. 209/3124, Gaberone Road
16 Prosper Investments Jeremiah Ndiong Gilphas Otieno Apiyo Peter Nangiti Justus Olielo
P.O. Box 19684-00200, NBI P.O. Box 30670-00100, NBI
Kenyan
Plot No. 209/387, Development House, Moi Avenue
17 KEEP Investments Ismai Wachira Gachau Godfrey Lawrence Ambunya
P.O. Box 9429-00300, NBI P.O. Box 6269-00100
Kenyan LR. No. 209/8242, Popman House , Ojijo Road, Nairobi
18 Golden Credit Limited Dr. Kinandu Muragu Mrs. Muthoni Kinandu
P.O. Box 53550, Nairobi Kenyan L.R. No. 209/8612, Nanyuki road
19 Tumaini Family Elizageth Wanjiku Muchira David Gakuru Chianda James Kinyua Gichira Jane Wambugu Bisley Mama Khasandi Nyanyao Edith Wambui Kirandu Anthony Joshua Mbela Stephen Kimkuna Naibei
Box 66014-00800, NBI Box 62042-00200, NBI Box 62042-00200, NBI Box 14446-00800 Box 18, Kaguo Box 66014-00800, NBI Box 23035-00100, NBI
BUSINESS NAME
INSTITUTION PROPRIETORS ADDRESS NATIONALITY REGISTERED OFFICE
1 DECI – Capacity Economic Entrepreneurship
George Odinga Donde P.O. Box 78593 , Nairobi Kenyan Plot No. 209/4360/21 Kijabe Street
2 Mont Blanc Afrique (PLC)
Florence Wambui Busiega Jackson Kinyoho Mburu Elizabeth Ngoiri Mwangi James Mate Njeru Patrick Nyoike Maina
P.O. Box 60767-00200, NBI P.O. Box 73229-00200, NBI P.O. Box 6864-00300, NBI P.O. Box 125-01000, Thika P.O. Box 2292-01000, Thika
Kenyan Kenyan Kenyan Kenyan Kenyan
3 Amity Investment Charles Murithi Kirigua P.O. Box 52981, Nairobi Kenyan L.R. 209/4540, Rehema
Report of the Taskforce on Pyramid Schemes
148
House Standard Street 4 Denmar Investment Said Maingi P.O. Box 14897, Nairobi Kenyan Plot No. 209/3461, Moi
Avenue
5 Strategic Wealth Africa
Jackson Ouma Ogeda Francis Edward Omondi Japaso Rachel Ngeno Alfred Victor Ochieng
6 Teddy Bear Base Investments
Stanley Karinga Kariuki P.O. Box 148, Nairobi Kenyan LR. No. 209/2749, Munyu Road
7 Fains Enterprises Stephen Njenga Mwaura P.O. Box 834, Thika Kenya L.R. No. 555/10/150 Thika 8 Executive Greens Manuel Mwakisha Mwatika P.O. Box 69989, Nairobi Kenyan L.R. No. B1’’/237 Kayole II
off Kangundo Road 9 Jacha Investments Onesmus Mwangi
Wilberforce Omondi Doughlas Irungu Smaul Karuri Samwel Njoroge
P.O. Box 266, Thika
Kenyan Kenyan Kenyan Kenyan Kenyan
L.R. No. 209/7041, Mgangano Street
10 Gelian/ Enterprises Gerald Njoroge Wanyoike Lilian Wanjiku Ngigi
P.O. Box 12773, Nairobi Kenyan L.R. No. 209/1138 stall No. 130, Langata Road
11 Mwisho wa-wote Investments
Patrick Kamau Njihia P.O. Box 266, Thika
Kenyan L.R. No. 209/3763, Ngariama Road
12 Keep Investments Godfrey Lwrence Ambunya 1smail Wachira Gachau
P.O. Box 6269-00100, Nairobi Kenyan L.R. No. 209/8242, Popmans House, Ojijo Road
13 Elitesome Investments James Mwangi Muthiga Teresiah Nheri Paul Mwathi Kimani Samuel Matheri Itatia
P.O. Box 47576-00200 Nairobi Kenyan
Plot No. 209/675 Philadelphia House, Tom Mboya Street
14 Bright Vision Products Margret Wanjeri Njoroge P.O. Box 16383, Nairobi Kenyan LR. 209/579, Makadara Nairobi
15 Plateau Investments Esekia Otieno Agiro P.O. Box 43844, Nairobi Kenyan Plot No. 151, Kamiti
Report of the Taskforce on Pyramid Schemes
149
Road, Zimmerman, Nairobi
16 Winners Choice Investments
Peter Kihuki Kihanya P.O. Box 12561, Nairobi Kenyan Plot No. 4953/522, Commercial Street, Thika
17 Tolima Investments Tom Obiero Miss Margaret Wanjiru Miss Lilian Atieno
P.O. Box 34669-00100, NBI Kenyan L.R. No. 209/1736
18 Liberty Products Nicholas Mwaniki Mounge Damaris Irima Mwaniki
P.O. Box 69, Kiritiri, Siakago Kenyan Plot No. 1980, Kiakago, Mbeere District
19 Sylvia Investment Charles Chege
NGO’S COORDINATION BOARD INSTITUTION OFFICIALS CERTIFICATE NO. ADDRESS REGISTERED OFFICE
1 Clout Isabella Anyona Masinde Rachel Kuboka Mukuna Valerie N. Mukuna
OP.218/051/2003/0398/3026
P.O. Box 64024-00620, NAIROBI
Waiyaki Way
2 Family in Need Organization (FINO0
John Leonard Wanyoike Winfred Gatakaa Kiria Rahab Maimutie Wanuoike
OP.218/051/2005/0200/3872
P.O. Box 13689-00100 Nairobi
3 National Peasants League
Peter Ndirangu Kinuthi Nathan Gitau Njoroge George Waweru Kinuthia Nelson Githiga
OP.218/015/2004/086/3164
P.O. Box 14641-00800
Naivasha Road – Njabini Junction
Report of the Taskforce on Pyramid Schemes
150
ANNEX 6 (b)
LIST OF OFFICIALS OF THE SUSPECTED PYRAMID LIKE SACCOS
I. ABIB SACCO CS 11296
1. Godfrey Kamanda Gakure- Chairman
2. Patrick Murabu Ndirangu- Vice Chairman
3. Anne Zawadi Divani- Secretary
4. Paul Mukui Chege – Treasurer
5. Joyce Mwebia Ligale- Committee Member
6. Gerald Kuria Ngure- Committee Member
7. Stanley Thuo Murunyu- Committee Member
Supervisory
1. Francis Irungu- Chairman
2. Francis Muroki- Secretary
3. Clement Oyunga- Member
II. TUJIBEBE SACCO SOCIETY LIMITED CS 11286
Management
1. George Donde – Chairman
2. Godfrey Kamanda Gakure- V/chairman
3. Philip koitalel- Treasurer
4. Ann Zawadi- Secretary
5. John Otury- Committee Member
6. Ambassador Mary Odinga- Member
Supervisory
1. Andrew Kogi- Chairman
2. John Kamande- Secretary
3. Peter Olando- Member
III. CLIP INVESTMENT CO-OPERATIVE SOCIETY LIMITED CS 11190
1. Peter Ndakwe- Chairman
2. Meshack Gachago- V/chairman
3. Didycus Shyamwama- Treasurer
5. Geoffrey Kiriungi- member
SUPERVISORY
1. Peter Koros
2. Alfred Kirubi
4. Festus Kizito- Secretary
Report of the Taskforce on Pyramid Schemes
151
IV. FAITH CARE SACCO SOCIETY LIMITED CS 10931
1. Peter Ngugi- Chairman
2. Alice N. Wachihi- V/Chairman
3. Jane Murithi- Secretary
4. Njau Mungai- Treasurer
5. Violet Wangui- Member
6. Beatrice Wakonyo- Member
7. Solomon Ngigi- Member
V. SPELL INVESTOR SACCO SOCIETY LIMITED CS 11392
Interim officials
1. Boniface Anderson Ngosia- Chairman
2. Faith Ayoti- V/Chairman
3. Consolata Nabwire- Secretary
4. Eunice Negesa- Treasurer
VI. ABIB INVESTMENT CO-OPERATIVE SOCIETY LIMITED CS 11301
1. Godfrey Kamanda Gakure- Chairman
2. Stanley Thuo Murunyu- Vice Chairman
3. Anne Zawadi Divani- Secretary
4. Andrew Kogi Ngaru – Treasurer
5. Gerald Kuria- Committee Member
6. John Kamande- Committee Member
7. Emily Mbugua- Committee Member
Supervisory
1. Moses Kungu- Chairman
2. Alice Gichungu
3. Francis Muroki- Secretary
VII. SASANET SACCO SOCIETY LIMITED
1. Michael Chege- Chairman
2. Dorothy Wangui- Hon. Secretary
3. Ronald Ouma- Treasurer
4. Job Nyamao- V/chairman
5. Camilla Mwangi- Member
SUPERVISORY
1. Silvia Nyabeki- Chairman
2. Sammy Gitau- Member
3. Dean Gitonga- Secretary
VIII. KENYA CHRISTIAN COMMUNITY SACCO CS 11351
Report of the Taskforce on Pyramid Schemes
152
1. Bishop David Aroko- Chairman
2. Pst. Joshua O. Otieno - Vice chairma
3. M/s Pauline Wairimu Gathungu- Hon. Secretary
4. Mr. Denis Ogalo - Treasurer
5. Mrs. Jedidah N. Munyiri - Committee member
6. Mr. Job Kiprotich - Committee member
7. M/s Mildred Ogutu- Committee member
SUPERVISORY COMMITTEE
1. Chairperson - M/s Doreen A. Otieno
2. Member - Mr. Elias S. Barasa
3. Hon. Secretary- Bishop Johnson Fundi Mwai
IX. KENYA BUSINESS COMMUNITY SACCO CS 11024
1. Francis Omurwa- Chairman
2. Angelo Mung’ri M’inoti – V/Chairman
3. Elias Kathurima Rutere- Treasurer
4. Barnabas Mwangangi- Secretary
5. Stanislous Nzeti- Member
6. Tom Okongo- Member
7. Simon Simiyu Wabuge- Member
8. Paul Tharamba – Member
9. Jeremiah Maseki Ochenge- Member
X. EXCELERS NETWORK SACCO SOCIETY LIMITED CS 11208
Interim Management Committee 1. Morrison M. Muriuki- Chairman
2. Esther W. Kiarie- V/Chairman
3. Kennedy Macharia King’ori- Secretary
4. Henry Migingo Awai – Secretary
XI. GLOBAL SACCO SOCIETY LIMITED CS 11370*
Interim officials 1. Patrick Ayisi Ingot- Chairman
2. Christopher Mweresa Livunda- V/Chairman
3. Florence Nzoeva Mulama- Secretary
4. Edward Murithi Matu- Treasurer
Certificate still held by Ministry of Co-operative Development and Marketing. Therefore the society never took off.
Report of the Taskforce on Pyramid Schemes
153
XII JITEGEMEE SACCO SOCIETY LTD.
Management Committee 1. Jackson K. Mburu - Chairman 2. Patrick M. Nyoike - Member 3. Florence Busiego - Vice Chairman 4. James Mate Njeru - Treasurer 5. Elizabeth Mwangi - Secretary
Supervisory Committee
1. Njeru Mwangi Kinyoho - Chairperson 2. Ruth N. Njoroge - Secretary 3. Eunice K. Gichuhi - Member
XI11 TUJIBEBE SACCO
1. George Donde - Chairman 2. Bishop Gakure - Vice Chairman 3. Philip Koitatel - Treasurer 4. Ann Zawadi - Hon. Secretary 5. Jack Okery - Committee 6. Amb. Mary Odinga - Committee
Supervisory Committee
1. Andrew Koigi 2. John Kamande 3. Peter Olando
Report of the Taskforce on Pyramid Schemes
154
ANNEX 19
Advocates Invited
NAME LOCATION INSTITUTION COMMENT
1. Lumumba & Muma Co. Advocates
ACK Garden House – 3rd floor
Tujibebe Sacco Did not attend
2 Mwagombo & Okonjo Co. Advocates
View Part Towers
(Kenya Business Community Co-operative Society Ltd.)
Attended
3 Siddondo Mwangi & Co
Box 35144 Nairobi Std Building – Wabera Street 4th Floor
Sasanet Investments Did not attend
4 Watengula & Adan & Co.
Corner House
Clip Investment Did not attend
5 Kanyangi & Co. Adv
Solar House 4th Floor, Moi Avenue (pursuing for victims)
Attended
6 Mugambi Gathangu & Adv. (Circuit)
Tel. 343712/316464 Box 06100 – 15767 Nairobi
Circuit Investment Did not attend
7 H. N. Njiru & Co. Advocates
Ambalal House South tower, 9th floor, Nkurumah Road Mombasa)
Kenya Business Sacco
Did not attend
8 Kiiru Paul Thuita Advocates, Thutta Kiiru & Co. Advocates
P.O. Box 58854 – 00200, Nairobi – Jameson Court, Flat C4, Ngong Road
Excellors Network Investment Ltd.
Did not attend
9 Kemeio & Co. Advocates
Sasanet Sacco Ltd Did not attend
10 Iseme Kamau & Maema Advocates Company
IKM Place, 8th Ngong Avenue
Sasanet Sacco Ltd Did not attend
11. Chemwok & Co. Advocates
Bruce House Kenya Business Sacco
Did not attend
12 Cliff Ombetta Lonhro House, 2nd floor
Sylvia Investment Did not attend
Report of the Taskforce on Pyramid Schemes
155
13 Ajaah Obuya & Co. Advocates
Sasanet Investments Attended
14 Mokono Ondieki & Co. Advocates
NHC House, 2nd floor, Aga Khan Walk
Gilt Edge Investments
Did not attend
ANNEX 22
Report of the Taskforce on Pyramid Schemes
156
-DIRECTORS AS GIVEN DURING PUBLIC HEARINGS
NAME OF DIRECTOR SCHEME COMMENTS
George Donde Deci Chair Chairman, CEO, Founder
Bishop Godfrey Gathure
(Christian International Church)
Deci (Vice Chair) In charge of spiritual matters
Mary Donde Deci
Ann Zawadi (Advocate) Deci In charge of legal advice
Joyce Ligale Deci In charge of Promoters
Hon. Muhia Deci Connection person in ‘high places.’
Liz Muchira Deci In charge of operations
Susan Redempter Deci In charge of technical matters
Jack Odeny Deci
Amb. Mary Odinga Deci
Gerald Mwiruri Deci
Philip Koitairer Deci Identified by Bishop Galire
Gearld Ago Deci
Judith Donde Deci 0720753912
Niece to George Donde
Jackson K. Mburu Jitegemee/Mont Blanc Afrique- Chair
0725-059724
Patrick M. Nyoike ,,
Florence Wambui Busiega
Jitegemee-Vice 0721-602388 P O Box 6067 - 00200 NAIROBI
James Mate Njeri Jitegemee-Treasurer 0736-941032
Elizabeth Mwangi Jitegemee-Sec 0722-388636
Bernard Mwuiruri New Akiba Identified by Benson Kamau
Dr. Joshia Adunda New Akiba
Michael Kipron Cheruiyot New Akiba
NAME OF DIRECTOR SCHEME COMMENTS
Report of the Taskforce on Pyramid Schemes
157
Gabriel M. Mugambi New Akiba
Abraham Tom Mbiku New Akiba
Fred Changamwe Chitechi Wespuita Service)
Zacharia Chimegero ACID
Aaron Simbteka ACID
Mildred ACID 0721-765294
Dr Peter Ndakure Clip Chairman
Doreen M. Masese Clip Vice Chairman
Didacus Shyamwana Clip Treasurer
Pastor Meshack Gachango Clip Member
Geoffrey Kingi Clip Supervisory
Peter Kous Clip Supervisory
Alfred Kirubi Clip Supervisory
Michael Chege Sasanet Chairman
0722 527977
0733 527977
Dorothy Wangui Sasanet Hon. Secretary
Ronald Ouma Sasanet Treasurer
Job Namadi Sasanet Committee
Camilla Mwangi Sasanet Committee
Sylvia Nyambeki Sasanet Supervisory
Sammy Gitau Sasanet Supervisory
Dean Gitunga Sasanet Supervisory
Gideon Mwiti Kenya Business Founder
John Kinoti Kenya Business Founder
Prisons S. Waga Kenya Business Secretary
Margaret A. Nganyi Kenya Business Treasurer
Gideon Mwiti Akiba Microfinance 0721 391927
0734 581355
Bernard Muthuri ,,
NAME OF DIRECTOR SCHEME COMMENTS
Festus Kizisa Clip Hon. Secretary
Report of the Taskforce on Pyramid Schemes
158
Dr. Josiah Aduda ,,
Michael kipkorir Cheruiyot ,,
Gabriel Mugambi ,,
Abraham Somo Biko ,,
Timothy M. Mwangi Global C.E.O- 0733-779211
Jacinta Wangari Mwangi Global
Rev. Muingai Livelink 0721-336778
-Based in Kiambu but recrited in Nakuru
Edna Wangari Circuit
Eimilio Mwangi Director
Mary Osienju A& A Director
Agnes Muliro Swop Director
Wife to former M.P for Ugenya Ondiek
Swop Director.
Identified in Bungoma
Kibe
Smart Welfare
Association
0721 782640
0735 093177
Rose Macharia Smart Welfare
Association
- Accountant
0734 021548
Joseph Nderitu
Smart Welfare
Association
General Manager/Overseer
0722 942898
Grace Mathenge Smart Welfare
Association
Director
0735 384024
Susan Kibieyogo Circuit
Edna Wangari
Paul Nderitu Kingori Silver ventures I/D NO.12781612
Francis Mambo Kinyua Silver ventures I/D NO.25009447
Rachael Wangari Mburu Silver ventures I/D NO.25250386
-PROMOTERS AS GIVEN DURING PUBLIC HEARINGS.
NAME OF
PROMOTER
SCHEME REGION
IDENTIFIED
CONTACT COMMENTS
Pastor Kariuku (CCU Church)
Deci Meru Non To be summoned
Caro Deci Nakuru 0723- 127459 Manager
Report of the Taskforce on Pyramid Schemes
159
Pastor Veronica Kariuki
Deci (employee
Meru 0721-859971
Pastor Tumbo Deci Coast
Pastor Caleb Odunga
Deci caleb [email protected]
Pastor Jamleck Mushike Muthike
Deci (Embu Office Manager
Embu 0723-867294 Id.11065250
Mr. Kirugu FINO (Manager)
Embu
Paul Kariuki Kiragu
Embu 0720-415264 Id No. 0266997
Rev. H. N. Kamundi
FINO Agree Mt. Kenya
Pastor Richard Njeru
Deci Promoter 0720-954850 UD 5333356
Bishop Peter Muturi Ndegwa
Deci Promoters
Muranga Was a signatory to winners transactions a/c.
Pastor Benson Irungu Mwangi
Deci Promoter Murang’a 0720-484513 ID No 0622099
To be summoned
Pastor James Ngahu
Excel Promoter
Murang’a
Pastor Kamau Wanderi
Deci Promoter Thika 0734-164740 ID-11249581
Pastor Joseph Odhiambo Owino
Deci (Kisumu Kondele Centre)
Liz Okwaro Deci (Kisumu Center Manager)
Josephine Oteino
Deci (in charge of operations)
Kisumu 0722-928128
NAME OF
PROMOTER
SCHEME REGION
IDENTIFIED
CONTACT COMMENTS
Farida Salim Deci (Kisumu Coordinator)
Kisumu 0721-692240 Banked money in personal account Lecturer at Kisumu Polytechnic
Esther Bongo Deci (Kisumu Kisumu 0733-711254 Banked money in
Report of the Taskforce on Pyramid Schemes
160
Center Manager)
personal account Lecturer at Siaya Institute of Technology
Jane Akendo Deci Cashier Kisumu
Rosemary Ndungu
Deci (Kibuye Market)
Kisumu
Charles Odhiambo
Deci Kisumu
Pastor Asaka & Wife
Deci Kisumu
Pastor Daniel Omuse
Deci Bungoma 0726-096360
Lenoard Namambu
Deci (Webuye)
Webuye
Dan Donde Deci (Manager – Nakuru)
Son to Donde
Ann Munyasia Simiti
(Manager Bungomba)
Bungoma 074-423557
Benard Sithulia Deci (Manager – Kakamega)
Kakamega
Aggrey Embuta
Deci Mbale
Ambrose Francis Nyangesarie
Deco Kisii Provided a flash disc with information
George Manyara
Deci 0735-959754 Was a promoter for 6 months
Emily Gesare Dieci Manager
0712-821987
Pastor Lawrence Nyariga
African Christian in Dev.
Kisii
Bishop Kaniaru African Gender youth Affirmative Network
Nakuru Promoter
NAME OF
PROMOTER
SCHEME REGION
IDENTIFIED
CONTACT COMMENTS
Pauline Mwangi wife of deliverance church pastor
Deci Nakuru Pastors of Neno church in Nakuru encouraged people
Report of the Taskforce on Pyramid Schemes
161
Catherine Wairimu
Fino 0721-581521 Has nissans in Nakuru
Acid Acid P.O. Box 23859 Kampala. 256-041-371375
Acid has branches in Rwanda and Burundi
Pastor Joseph Muiruri
Deci Nakuru 0722-731947 Id-8918175
Jecinta Nyambura
Deci Nakuru 0725-584297 Id- 23772832
Samel Mugo Deci Nakuru 0728-267644 Clerk at deci In possession of receipts and books.
Mary Deci Nakuru 0721-899060 Velco House, Biashara street
Mercy- cashier Deci Eldoret 0720-817962
Arap Keino- cashier
Samuel Juma Deci Eldoret
Retired General Agoi
Deci Eldoret
Bishop Gichana
Deci Eldoret
Joe Donde Deci Eldoret
Ngetich Deci Eldoret 0723-451605 Cashier at the Eldoret branch
Pastor Peterson Deci Eldoret
Pastor Madegwa
Deci Eldoret
Ben Njenga Deci Eldoret Center manager- Zuli arcade
Juliet Juma Deci Eldoret 0723472789 Center manager- emanuel hawai
Judith Donde Deci Eldoret 0720753912 Sister to Donde
Don Donde Deci Eldoret 0722 386678 Son to Donde
David Deci Eldoret 0724-896256 Manager-Nyota
NAME OF
PROMOTER
SCHEME REGION
IDENTIFIED
CONTACT COMMENTS
Caleb Oganda Deci Kisumu Was a promoter at the Deci
Report of the Taskforce on Pyramid Schemes
162
Victoria center.
David Muchoki Deci Nyeri Signatory to Winners account
Lilian Adhiambo Ogola
Deci Kisumu -used to pay money into her personal a/c. -see bank table for details.
Pastor Daniel Omuse
A&A Bungoma 0726-096360 -Took original receipts from some investors.
Leornard Namambu
Deci Bungoma
Christine Kegothe
Deci Eldoret
Bishop Wachira Karani
Deci Nyeri signatory to Winners Ntwk a/c in Nyeri
Margaret Circuit Nairobi 0722 – 914784
0710 – 533225
Has a boutique in Upper hill
Report of the Taskforce on Pyramid Schemes
163
ANNEX 24
VERBATIM REPORT
OF THE TASK FORCE ON PYRAMID SCHEMES
24TH FEBRUARY 2009
RAILWAY CLUB - NAIROBI
VERBATIM REPORT OF THE TASK FORCE ON PYRAMID SCHEMES
MEMBERS PRESENT:
Report of the Taskforce on Pyramid Schemes
164
Hon Francis Nyenze - Chairman
Amb. John Mukuriah - Vice Chair
Mr. David Odhiambo Oduol - Member
Mr. H. Mwai Rurigi - Member
Mrs Sakina Adan - Member
Mrs Emily Mwachoo - Member
Mr. Joseph Kibowot - Member
Mr. Zebedeo Onguti - Member
Dr Machanja Ligabo - Member
Secretariat
Mr. Philip Gichuki - Secretary
Ms. Roseline Ragama - Secretariat
Hearing began at 10.38 a.m. with Hon. Nyenze in Chair.
Hon. Francis Nyenze: Hamjambo nyinyi nyote. Sasa tunataka kuanza mkutano yetu
ya leo, na tumeshukuru vile mumekuja. Kwa sababu watu watakuwa wengi as the day
goes by, tunaanza mkutano na maombi vile mnavojua. Kwa hivyo, hawa mabinti,
ningetaka kuliza mmoja atupeane kwa mungu ili kikao kiwe imebarikiwa. So, let us
pray, please. Anyone among you achukue microphone.
(Prayer by a participant)
Let us pray. God our Father, our Creator and our Maker and our provider; we have come
before you, King of glory asking you for the gift of life for each of us, heavenly King.
Dear Father, you tell us to come to you when we are in need of many things. Lord, we
are presenting to you all these people who have come to this hall. We are also presenting
to you the Officers who are before us, oh heavenly King. I know they have got a very
difficult task to do which they cannot do by themselves, but with your help they will
succeed because we are trusting in your mighty name. Heavenly King, we also want to
pray for those people who invested and some may be lost lives, or lost homes in the name
of investment. Take care of us, Heavenly King. We want to pray that you forgive all our
sins, Heavenly King. We may not have consulted you. We pray all of this through the
name of Jesus Christ our Lord and Saviour, Amen.
Hon. Francis Nyenze: Amen, amen and thank you very much for the good prayer.
Now, members, I just want to introduce Commissioners of the Task Force that the
Government appointed to look into the pyramid schemes. To look into, who were the
directors, who were the investors, were there promises; were they delivered; what was
Report of the Taskforce on Pyramid Schemes
165
not delivered; and is there any money that can be refunded to you? So, I want to
introduce the Team to you. You have an advantage because you are fewer, so we have
more time. So, I will start from the corner there; say your name and then we will go on.
Yes, Mr. Odhiambo.
(Microphone is being passed on)
Hon. Francis Nyenze: Unasimama tu na unawaambia.
Amb. John Mukuriah: My name is Ambassador John Mukuriah, Vice Chair of the
Task Force.
Mr. Mwai Rurigi: My name is Mr. Rurigi Mwai, Member.
Joseph Kibowot: My name is Joseph Kibowot, Member.
Ms. Sakina Adan: Sakina Adan, Member.
Mr. Francis Nyenze: Thank you, and I am Francis Nyenze, Chairman of the Task
Force. As I said earlier, the government heard your cry, that you invested genuinely but
you lost a lot of money. Then, it appointed this Task Force to settle that problem because
you are suffering. As the lady who prayed put it, there are those who lost their lives,
there are families that broke up because of these investments and there is a lot of
suffering. So, this Task Force is there to help try to overcome that problem.
Without wasting time, this is a public hearing. Tanataka utuambie your name, pyramid
scheme ile uliweka pesa, uliweka ngapi, tarehe ngapi na makubaliano ilikuwa utapatiwa
nini and did you get it and hukupata? That is the information ukisimama hapa,
unatuambia jina, pyramid scheme, what you were promised, what they gave or never
gave. Because you are registering outside there, you also record this information halafu
tutafuatilia. Kuna advantages ukisema kwasababu ukisema experience yako, utasomesha
wengine so that in future it does not recur. Some of us are also victims. We have not told
you our story but we are here to receive your story. All of us are suffering, but we have
to bring this to an end. So, we want to start giving you a chance to speak because many
more people will be coming. Nataka uinue mkono. Nani anataka kuanzia? It is easy,
you just say your name, mimi ni so and so, niliingia kwa hii scheme. Nani anataka
kuanza? Mjipange. Wazungu wanasema, “behind every successful man there is a
woman”. Unaona ladies wanajipanga, ukiwa tayari unaweza kuanza. Okay, the lady
here. Wacha upatiwe hiyo microphone.
Report of the Taskforce on Pyramid Schemes
166
Ms. Mary Onyango: Habari zenu.
Hon. Francis Nyenze: Mzuri.
Ms. Mary Onyango: Naitwa Mary Onyango. Kwanza, nili-invest na DECI in
February, 2007. Nikapeleka huko 96,000; nikaambiwa ita-mature after six weeks. After
six weeks, ikawa ni story tu na sikuona. Halafu baadaye nikaenda Jitegemea nilipoona
watu wanapata. Hapo nikapeleka 50,000. Tena ikawa wakati wangu ikawa ni the same
story. Nikapata wamefunga mwishowe na sikuona chochote. Asanteni.
Hon. Francis Nyenze: Thank you, Mary Onyango.
Amb. John Mukuriah: When you invested first 96,000, contract ilikuwa namna gani?
Ulikuwa upate interest weekly ama ulikuwa unapata namna gani? Ulikuwa unapata
interest kwa mwezi ama ilikuwa namna gani?
Ms. Mary Onyango: Interest nilikuwa nimeipata yote – kitu kama 200,000 hivi.
Amb. John Mukuriah: Ati ulipata ngapi – 200,000 after six months? You said you
invested 96,000 for six months?
Ms. Mary Onyango: Yes.
Amb. John Mukuriah: So, after six weeks how much were you to get?
Ms. Mary Onyango: 200,000.
Amb. John Mukuriah: 200,000?
Ms. Mary Onyango: It was 210,000.
Amb. John Mukuriah: And for Jitegemea?
Ms. Mary Onyango: For Jitegemea it was 100,000.
Amb. John Mukuriah: It was 100,000?
Ms. Mary Onyango: Yes.
Amb. John Mukuriah: Ya wiki ngapi? After three weeks also?
Ms. Mary Onyango: Yes, three weeks.
Amb. John Mukuriah: Ooh. Asante.
Ms. Mary Onyango: Asante.
Ms. Grace Ndung’u : Good morning, once more. I have a story but I am not going to
say the whole story. I will just say a part of the story because it is opening the wounds
and I do not want my wounds to be opened. So, I will just say a bit. I am a retired
teacher--
Report of the Taskforce on Pyramid Schemes
167
From Members’ Table: Name.
Ms. Grace Ndung’u: My name is Grace Wamboi Ndungu. When this news pyramid
scheme came, I was doing an NGO and nothing going on. Because there was nothing I
was doing, when I heard about it, I said that at least I will get something to keep me busy.
So, I went to several. That is why I am saying I am not going to say all, I will just
mention a few. But I heard of DECI, I went there. I cannot remember those dates
actually. I got some money and I thought, because they have already paid me, I thought
it is a good thing--
(Inaudible from Members’ Table)
Ms. Grace Ndung’u: I am saying in DECI, I started with 10,000 and the 10,000 we
were to be paid within three weeks and they were doubling that money and indeed I got
the twenty, alright. Having gotten it, nikasikia, kweli they are very genuine people
because I had seen the money. I just went and re-invested it again. This is not good,
because that was really the catch. Those who started with them, because I think I am the
first few who started with them, that was really the catch. So, we were getting it and
returning, getting it and returning it; it was very tempting, let me tell you. Because once
you have seen the money, it is as though you are hearing, ‘what are you going to do?’
You want to add more. So, that is how I was caught up (laughs). That is DECI.
(Inaudible from Members’ Table)
Ms. Grace Ndungu: I lost it! I reached somewhere, I raised it as far as 96,000, which I
lost. It was a continuous thing – accumulating and getting and of course there is a time
unairudisha – very tempting, actually. Halafu, I heard about CLIP. They started here
along Tom Mboya Street somewhere. I went there and, I think I paid 100,000 and was to
earn an interest of 10% and I was getting the interest. They were very punctual in giving
the interest. But, as time went on, they moved from town and went to Kisura. From
Kisura they went to South ‘C’. I invested with them there and that is where we were
going to get the interest because people were very many here and the city became very
small. So, they moved the people to that place because there was a very big compound.
Then, from there, they went to South C near Mugoya. There I lost 523,000 when they
closed everything. So, that is why I am saying I do not want to open the old wound
because when I recall what I lost, but I say, nilikuwa ninatafuta na usipopoteza-- I did
not know what I would lose because the way it was quick money I thought it was the end
of my poverty. I am sure many people have a story to tell. I think that is enough.
Report of the Taskforce on Pyramid Schemes
168
Amb. John Mukuriah: So, Grace, you lost 523,000 in total at CLIP only?
Ms. Grace Ndungu: Yes.
Amb. John Mukuriah: And at the other place you lost 96,000. At DECI you lost
96,000 cumulatively over time and then fare. Umepeana marisiti huko?
Ms. Grace Ndungu: Makaratasi nimepeana.
Amb. John Mukuriah: Asante.
Ms. Grace Ndungu: I can also say, I commend the government for what you are doing.
Whether you will succeed or not, as a person I appreciate it. You may not achieve back
the money because money inside someone’s pocket is not very easy to return but at least
you have gotten some information. So I appreciate what you are doing very much and
may God bless you.
Mr. Frances Nyenze: Thank you Grace Wambui and considering that it was retirement
money; considering that when you retired you have lost them but God will-- Now, we
want to hear from the next person.
Mr. Nicholas Wambua: Chairman, and your Team, I am very thankful this morning to
stand in front of you and give a few words about what went on in the pyramid I joined.
Sorry. My names are Nicholas Muia Wambua. First I started with Sasanet. I deposited
200,000 there. The return was every month. There was agreement for six months, one
year and two years. I went for two year. The interest was 18%. With Sasanet, they were
very, very diligent because they were depositing the cheque in my account. I was not to
collect it from them, it was going back to my account. They never disappointed me.
That work went on very well and in four months I got everything and moved away from
them when they reduced the interest to 10%.
I went to Circuit. They were not giving 18% like Sasanet, they gave me 16% and I
accepted and deposited a cheque of 150,000. I went with Circuit for about 5 months. In
the 5th month, I decided to top up again. I deposited 150,000; I looked for money and
deposited 150,000 again. That is a total coming to 300,000. That day when I deposited,
Mr. Mugambi was the advocate there, I asked him because I was saving something even
though I was giving that money. I asked him whether this thing is going on and he told
me there is no problem, ‘go and deposit your money’. I asked the advocate, he was
Report of the Taskforce on Pyramid Schemes
169
acting on behalf of the customers and the Circuit Management. So, I did that and that
very moment, the next week when I was coming to check what is going on at the office, I
found that they had closed. So, I did not get anything from them. But the other one, I
received about 5 months then the third time they completely closed. When I went there I
found they had closed.
From there I have been going round and round. We were with some people, they went to
court and went collecting money from people but those are collecting money for nothing.
Anyway, I cannot say for nothing because what they did they did because you have
something somewhere, you have to follow and see where you can get a clue.
Mr. Martin Wabachi: Jina langu ni Martin Wabachi Githenji. Nili-invest na Kenya
Multipurpose Business Entrepreneurs Ltd in December, 2006. Initial capital ilikuwa
20,000 na 5,000 legal fees..
Amb. John Mukuriah: Twenty thousand?
Mr. Martin Wabachi: Twenty thousand na 5,000 legal fees. Halafu, January nika-top
up, nikaongeza 380,000.
Amb. John Mukuriah: Ukaongeza ngapi?
Mr. Martin Wabachi: Three hundred eighty thousand. Agreement ilikuwa walipe
16% per month. Nika kaa nao miezi sita – up to June, nikachukua 400,000 at 16%. Hiyo
nikachukulia mama yangu
Amb. John Mukuriah: Kuchukua ni kusema uli-deposit?
Mr. Martin Wabachi: Nili-invest. I invested 400,000 on a different name at the same
rate of 16%. I did not get any return completely because after that they closed. So, total
loss was around 405,000 and a further 405,000 for the last time.
Amb. John Mukuriah: Total is 810,000.
Mr. Martin Wabachi: Yes.
Amb. John Mukuriah: That is what you lost?
Mr. Martin Wabachi: Yes, that is the investment I lost.
Report of the Taskforce on Pyramid Schemes
170
Amb. John Mukuriah: What was the name again?
Mr. Martin Wabachi: Martin Wabachi Githenji?
Amb. John Mukuriah: And you said you are a university student or what?
Mr. Martin Wabachi: No, I am a businessman.
Amb. John Mukuriah: A businessman, okay.
Hon. Francis Nyenze: Can you tell us where they were situated?
Mr. Martin Wabachi: They were located at Viewpark Towers, 8th Floor and we paid
directly to the offices. And also I have the details of the lawyers. I think they are called
Mwagambo and Okonjo Advocates, still at Viewpark Towers, 8th Floor.
Hon. Francis Nyenze: Any further information?
Mr. Martin Wabachi: No further information.
Hon. Francis Nyenze: Thank you, very much. Excuse me, Githinji, do you know the
directors?
Mr. Martin Wabachi: I did not get to know the directors.
Hon. Francis Nyenze: And the days when you, eh--
Mr. Martin Wabachi: The initial one was in 2nd December, 2006. That was for the
20,000. Then 380,000 was January, 2007. Four hundred and five thousand for 29th July,
2007.
Hon. Francis Nyenze: Good, Githenji. Have you given those photocopies of those
documents there?
Mr. Martin Wabachi: I just gave them the details, no copies.
Hon. Francis Nyenze: You have to give them the copies because we want to follow up
this money as we refund it. Have you given those--
Mr. Martin Wabachi: I never gave them the copies.
Report of the Taskforce on Pyramid Schemes
171
Hon. Francis Nyenze: You have not given?
Mr. Martin Wabachi: They were taking the details only, so we were wondering also--
Hon. Francis Nyenze: Check with the Secretariat, then.
Amb. John Mukuriah: What we are saying is this; zile kartasi ambazo mko nazo, all
the receipts showing the kind of deposits you made and to who, the copies of those
should be left at the Registration desk there. The photocopy of the ID, because it is very
important – this is not a matter that is going to end up lightly, this is a matter we are
going to follow to the end. So you must give a photocopy of your ID and photocopy of
all documents, please. So, Secretariat, make sure that these documents are left. If you do
not get these documents, then we have lost what we wanted to do this morning. Now,
that was Kenya Multipurpose. Kuna mtu mwingine was Kenya Multipurpose>
Secretariat, we are sorry, it appears wanajaza tu ma-forms, hakuna documents inaachwa
huko. So, check because I think something is terribly wrong there.
Mr. Phlip Gichuki: For those who came earlier, they have not got the instruction. But
now, it is clear that even those who had come early here should pass through the
Registration Desk or Tent, for that matter. We are still within time; it is for your own
interest that you leave the copies of your documentation, notwithstanding whether it
appeared as stated in the Newspaper.
Amb. John Mukuriah: Kuna mtu kutoka Family In Need – who invested in Family In
Need? Hakuna.
Hon. Francis Nyenze: Thank you, very much. Kurudia tena, any document you have,
just leave it with us. That is what we will use to follow your money. Give photocopies
of those documents and the ID card. As they are preparing to check whether there is
photocopying machine around because people have not come ready, we want to hear
from another person. This gentleman is ready. Come.
Mr. Martin Mukholi: Asante sana. Kwa majina, naitwa Martin W Mukholi. Mimi ni
mwadhiriwa wa kampuni mbili. Kampuni moja inaitwa Freer Investment Ltd, iko
Garden Chambers, opposite Jeevanjee Gardens, 4th Floor. Hii Kampuni ya kwanza,
wapendwa--
Amb. John Mukuriah: Enda pole pole. Ati, kampuni inaitwa nini? Pria?
Mr. Martin Mukholi: Freer Investement Ltd. Iko Garden Chambers, opposite
Jeevanjee Gardens. Hii Kampuni ya kwanza, niliweka pesa 10,000/- pamoja na
Report of the Taskforce on Pyramid Schemes
172
Registration ya 800/- na agreement ilikuwa ya kwamba, hii pesa ina-mature baada ya
mwezi moja. Na baada ya hiyo mwezi moja, ningeenda nipewe double this investment.
Amb. John Mukuriah: Twenty thousand now.
Mr. Martin Mukholi: Yea.
Mr. Martin Mukholi: Wapendwa, nilipoenda huko baada ya mwezi moja,
wakaniambia, mzee, ngojea kidogo, mzee ameenda kutafuta pesa, kuja baada ya two
weeks. Hiyo ilikuwa 25th May, 2007. Baada ya hizo two weeks nilipoenda, nilishangaa
sana, wapendwa, kupata kifuli kubwa imewekwa kwa mlango na wanasema, ‘the office is
not in operation as of now until further notice’. Sikupata chochote. Sasa hiyo emergency
loan nilichukua ikaenda namna hiyo kwa hewa.
Hon. Francis Nyenze: Swali hapo, Martin: unajua directors ama yule alikuuliza uingie
ui-invest hiyo ten na upate another ten.
Mr. Martin Mukholi: Well, majina ya directors sikuwambiwa kwa sababu wakati
tulienda kupewa direction, tulienda kwa ofisi na tukapata tu Clerk – wale wali-receive
pesa, registration. Na receipt mimi nilipewa nko nayo hapa.
Amb. John Mukuriah: Ulijuaje hii kampuni?
Mr. Martin Mukholi: I got the information from my colleagues. Hao pia wali-invest
kwa hiyo kampuni mapema. Na wale wali-invest kwa hiyo kampuni mapema,
welifanikiwa; walienda huko baada ya wiki mbili wakapewa pesa yao pamoja na--
Tulipokutana kwa bank, ndiyo akaniambia ndiyo akasema, mbona wewe usijaribu haki,
na unajua hali ya uchumi hapo ilikuwa ngumu sana. Nikaona eh, hata mimi afadhali
nichukue kama hii 2,000/- nirushe huko naweza kupata hata hiyo mwezi moja. Na
kumbe, bila kujua, I ended up losing it. Hayo tu ni mashida ya taifa wapendwa.
Halafu kampuni ya pili inaitwa Popera Investment. Hii niliweka 10,000/- pamoja ni
500/- ya registration. Na ilikuwa tarehe 16/7/2007. Agreement ilikuwa ya kwamba hii
pesa inge-mature after 3 weeks. On maturity date nilipewa maratatu; ndio hii
investment.
(Brief pause)
Hon. Francis Nyenze: Endelea tu, Martin.
Report of the Taskforce on Pyramid Schemes
173
Mr. Martin Mukholi: Sasa, hiyo pesa, 3,000, nilipoenda, Nilienda huko, tulikuwa
watu wengi sana, na tukaambiwa tusubiri wiki moja tena – tungojee wiki moja zaidi,
ndiyo pesa zetu zilipue. Mimi nikavumilia nikangoja tena wiki moja tena. Nilipoenda
huko, nikapata notice kwa mlango ya kwamba, ofisi imehamishwa and is no longer in
operation. Na wakasema, watatu-contact; na kumbe walikuwa wameshaenda. Na hiyo
pesa ikapotelea hapo tu namna hiyo.
Amb. John Mukuriah: By the way, Popera walikuwa wapi?
Mr. Martin Mukholi: Hiyo ofisi ya Popera ilikuwa - hiyo document yao nimewacha
hapo kwa Registration, along Luthuli Avenue, here in town. Hata walinipatia road map
ya kuenda hiyo ofisi na nimewacha hiyo copy pale.
Hon. Francis Nyenze: Uko na ingine?
Amb. John Mukuriah: Nakuliza, Martin, hiyo ya mwisho uli-introdishiwa na nani?
Mr. Martin Mukholi: Hii ya Popera?
Amb. John Mukuriah: Yes.
Mr. Martin Mukholi: Just my colleagues; the same colleagues
(inaudible due to Public Address problem)
Ms. Emily Mwachoo: Bwana Martin, unafanya kazi wapi, tafadhali?
Mr. Martin Mukholi: Nafanya na University of Nairobi.
Ms. Emily Mwachoo: Chiromo, ama?
Mr. Martin Mukholi: Hapa main campus.
Ms. Emily Mwachoo: Main campus?
Mr. Martin Mukholi: Yes.
Ms. Emily Mwachoo: Thank you, very much. So, your colleagues, those who
introduced you to that investment, are they ready to come and give us the bigger story
because they started and they were paid?
Report of the Taskforce on Pyramid Schemes
174
Mr. Martin Mukholi: In fact, today I will make an effort to inform them so that they
may also come.
Ms. Emily Mwachoo: Okay, thank you.
Hon. Francis Nyenze: Thank you very much, Bwana Martin. Sasa tunataka kusikia
kutoka mtu mwingine, there is a man, yes come.
Mr. Evans Masila: I am Evans Masila from Kitui. Nili-invest kwa Golden Life ambalo
ulikuwa ukiweka 1,000/- ungechukua ikiwa 2,500 for three times ndio pesa yako iishe
yenye uli-invest nayo. Kwa hivyo, ulikuwa uchukue 2,500/- three times. Kuna receipt ya
10,400/-, kuna ingine ya 10,400/-, 4,100/-, 2,100 ambayo ilikuwa Utalii House.
Amb. John Mukuriah1What is your total investment?
Mr. Evans Masila: Total investment; Golden Life ilikuwa inakuja 10,400, 10,400--
Amb. John Mukuriah: Ziweke pamoja.
Mr. Evans Masila: Ndio ninataka ku-combine. That is 30,100.
Amb. John Mukuriah: Just a moment. (calculating) 27,000/-
Mr. Evams Masila: Golden Life iko Utalii House. Mwenyewe ako na biashara hapo
chini, ground floor. Alikuwa anaitwa Margaret, na ako na biashara hapo chini.
Hon. Francis Nyenze: Margaret, nani?
Mr. Evans Masila: Jina hiyo ingine hatujui.
Hon. Francis Nyenze: Na ako na business--
Mr. Evans Masila: Ako na business ground floor.
Hon. Francis Nyenze: Ya nini?
Mr. Evans Masila: Ilikuwa ya boutique. Namba ya simu ukipiga inaingia. Namba ni
0721 533 225 and another one is 0722914 784. Unapompigia anakuliza, ‘utafanya nini’
Hon. Francis Nyenze: Ati nini?
Report of the Taskforce on Pyramid Schemes
175
Mr. Evans Masila: Ukimpigia simu ikiingia, anakuliza, ‘utanifanyia nini’.
Hon. Francis Nyenze: Okay, tumeshika, na inaitwa Golden Life. Unasema every month
ulikuwa akupatie--
Mr. Evans Masila: Kwa every 1,000/- ilikuwa ikuje ikiwa 2,500/-. So, ukiweka
10,000/- ulikuwa uchukue – after 2 months – 25,000/-, after another two months, 25,000/-
, after another two months 25,000/- na pesa yako iishe. Ulikuwa uchukuwe three times.
Amb. John Mukuriah: Sasa hii pesa, where did you deposit it? Kwa ofisi yao au
ulikuwa mnaenda kwa bank? How did you deposit your money?
Mr. Evans Masila: Nilikuwa napeleka kwa ofisi yao.
Amb. John Mukuriah: Hapo Utalii?
Mr. Evans Masila: Yea.
Amb. John Mukuriah: Kwa hivyo, hizi ma-risiti ni ya hapo?
Mr. Evans Masila: Walikuwa wanakuandikia hapo, hapo.
Amb. John Mukuriah: Naweza kuangalia kidogo?
Mr. Evans Masila: Yea.
(Members perusing the documents)
Hon. Francis Nyenze: Any further information unaweza ku-- kwa hivyo, were
ulipoteza 27,000/-. Kuko na mtu mwingine?
Mr. Evans Masila: Hiyo ni Golden Life pekee yake. Niko na zingine. Niko na watu
wengine wanakuja--
Hon. Francis Nyenze: Uko na mtu mwingine alipoteza kwa hiyo Golden Life Concept
Ltd?
Mr. Evans Masila: Yea, amenipigia simu saa hii.
Report of the Taskforce on Pyramid Schemes
176
Hon. Francis Nyenze: Shika hiyo risiti na huyo mwingine aje pia a-present yake.
Mr. Evans Masila: Kuna zingine; hii ni Christian Family.
Amb. John Mukuriah: Hiyo ni ipi?
Mr. Evans Masila: Christian Family.
Amb. John Mukuriah: Nione risiti, tafadhali. (receives the receipt) Christian Family
Ltd (Kenya)
Mr. Evans Masila: Ambalo ulikuwa ukiweka Shs.500/- ulikuwa unachukua Shs.1,500/-.
Pesa yako ulikuwa unapata ikiwa three times.
Amb. John Mukuriah: Three times kwa mwezi?
Mr. Evans Masila: Five hundred unachukua 1,500/- by the time unakuja kuchukua, na
due date iko hapo. Unachukua three times, ndio pesa yako inaisha. Kama ni one month,
unakujia after one month, after another one month unakujia, after another one month
unakujia. Kwa sababu ukiweka 500/-, unakuwa finally utoke hapo na 4,500/-. That was
the deal.
Amb. John Mukuriah: Uh, ulikuwa upate 1,500/- every month?
Mr. Evans Masila: Yes.
Amb. John Mukuriah: So, it comes to 4,500?
Mr. Evans Masila: Yea.
Amb. John Mukuriah: Excuse me, ulipoteza zote ama kuna kitu ulipata. Ya kwanza
ulikuwa umeweka 27,000/- Hiyo ilipotea ama ulipata kitu kidogo?
Mr. Evans Masila: Hiyo yote iko hapo. Imezama yote.
Amb. John Mukuriah: Na hii ingine?
Mr. Evans Masila: Hii nayo, ile nilikuwa nimepata risiti yake iko hapa.
Amb. John Mukuriah: Ni ma-risiti tu?
Report of the Taskforce on Pyramid Schemes
177
Mr. Evans Masila: Hizi ni zile sijapata--
Amb. John Mukuriah: So, what is the total of it? Sasa yako ni ipi? Na unafanya kazi
gani?
Mr. Evans Masila: Photography.
Hon. Francis Nyenze: Na dates ziko kwa risiti hapa.
Mr. Evans Masila: Ya DECI sija-explain.
Hon. Francis Nyenze: Hiyo itakuja kwa DECI. Ikiwa na ingine kwa hii Christian
Family, ama Golden Life-- Kuna mtu mwingine alilipa pesa kwa Golden Life-- fuata
huyu naye tusikie.
Mr. John Salat: Naitwa John Salat.
Amb. John Mukuriah: Unafanya nini, John.
Mr. John Salat: Mimi nili-invest pamoja na mke wangu ambaye anaitwa Lorna.
Amb. John Mukuriah: Unafanya kazi ipi?
Mr. John Salat: Mimi ni fundi. Last year nili-invest na mke wangu at the same Golden
Life Concept ambaye ndugu yangu, Evans amepeana details vile ilikuwa – ndivyo hivyo
ilikuwa. Ijapokuwa pesa zangu nili-invest 40,400/-
Amb. John Mukuriah: Forty thousand four hundred?
Mr. John Salat: Yes. That was 21st July, 2007. Na nikawa hiyo pesa nipate after 13
weeks – almost two months. The same date nilli-invest na my wife, Lorna Asembo.
Amb. John Mukuriah: Ngojea kidogo. Hii 40,000, contract ilikuwa ya three weeks or
three months?
Mr. John Salat: Ilikuwa 13 weeks.
Amb. John Mukuriah: So, 13 weeks utapata nini, utapata mara tatu?
Report of the Taskforce on Pyramid Schemes
178
Mr. John Salat: Yes.
Amb. John Mukuriah: Okay, endelea, tafadhali.
Mr. John Salat: Kwa hivyo, hiyo pesa nilipoenda kwa ofisi wakati nilikuwa nichukue
hizo pesa, nikakuta wamefunga. Nilikuwa na ndungu yangu, Evans; tukakuta imefungwa.
Nikapiga simu, hiyo simu iliingia lakini mwenyewe ako na madharau, anasema,
‘utanifanya nini’. Hata nilijaribu E-mail address nikakuta kwamba imefungwa.
The same money mimi niligawanya nikamuandikia mke wangu 30,400/-, Lorna Asembo.
Pia yeye alipoteza hivyo, hatukupata kitu.
Hon. Francis Nyenze: Kwa hivyo, total?
Mr. John Salat: Total inakuja 70,800/-.
Amb. John Mukuriah: Is it 70,800 or 70,700/-?
Mr. John Salat: 70,800/-. Because this one was 40,400/- and 30, 400/-.
Hon. Francis Nyenze: Yes. Thank you, very much John Salat for that information.
The name of your wife who lost that is Lorna?
Mr. John Salat: Yes, Lorna Asembo?
Hon. Francis Nyenze: Is there any other person who invested in Golden Life or
Christian Family in this hall? Whenever you went there you were told, ‘hakuna kitu
mtanifanyia?’
(consultations at Members’ Table)
Hon. Francis Nyenze: Now we can hear from another person from another-- okay,
madam. Give madam the mic.
Ms. Vivian Akinyi: Okay, thank you. I invested with Sasanet.
Hon. Francis Nyenze: Start with your name.
Ms. Vivian Akinyi: My names are Akinyi. I invested in Sasanet in July, 2006 and I did
a Contract that was done through a lawyer – Sasanet had a lawyer and she did all the
Report of the Taskforce on Pyramid Schemes
179
paper work and after that she would give you your payment for the whole year in terms
of a cheque. So you deposited every month. The Contract was a one-year thing then you
would renew. For the one year, we got paid.
Amb. John Mukuriah: How much did you invest initially?
Ms. Vivian Akinyi: Initially we gave 3.8 million.
Amb. John Mukuriah: 3.8 million?
Ms. Vivian Akinyi: 3.5, sorry.
Hon. Francis Nyenze: 3.5 million?
Ms. Vivian Akinyi: Yes. They had a cheque for 385,000/-.
Amb. John Mukuriah: You got your interest of 385,000/-?
Ms. Vivian Akinyi: Yes, for the whole year. That one came.
Amb. John Mukuriah: That worked well?
Ms. Vivian Akinyi: Yes. Then after that, you either get back your investment or you
renew the Contract. So, I renewed the Contract.
Amb. John Mukuriah: So, you renewed the Contract with the same initial amount of
3.5 million?
Ms. Vivian Akinyi: Yes and that is when we did now get the money. Even before we
renewed we did another Contract again with them of which we also were given the
Contract and the cheque; but that one never materialized because that is the time they had
a problem.
Amb. John Mukuriah: So, in total what you lost was only 3.5 million.
Ms. Vivian Akinyi: The second one was 1.7 million.
Amb. John Mukuriah: What is the total of what you lost? We are getting that the
initial investment which you got--
Ms. Vivian Akinyi: 3.5 million.
Amb. John Mukuriah: That one--
Ms. Vivian Akinyi: No, we did not take back the 385,000.
Amb. John Mukuriah: Oh, you did not take back the 385,000.
Ms. Vivian Akinyi: We renewed the Contract. So, we lost 5.2 million.
Amb. John Mukuriah: 5.2 million?
Ms. Vivian Akinyi: Yes.
Amb. John Mukuriah: This is Sasanet? Which office is Sasanet, I did not hear all of
that?
Ms. Vivian Akinyi: The lawyer’s office was on Standard Building, Wabera Street.
Amb. John Mukuriah: Yes. Any idea about the directors?
Ms. Vivian Akinyi: Of?
Amb. John Mukuriah: No idea?
Report of the Taskforce on Pyramid Schemes
180
Ms. Vivian Akinyi: You know the owner was called a Mr. Michael Chege.
Amb. John Mukuriah: Uh,uh.
Ms. Vivian Akinyi: Yes. But the lawyer did everything on his behalf.
Amb. John Mukuriah: What is the name of the lawyer?
Ms. Vivian Akinyi: She was called Pamela Sidondo.
Amb. John Mukuriah: Do you know her?
Ms. Vivian Akinyi: Yes.
Amb. John Mukuriah: Ukienda uko wanakuambia nini, Akinyi?
Ms. Vivian Akinyi: Uh?
Amb. John Mukuriah: Wakati unaenda uko wanakuambia nini? Au ofisi imefungua,
hakuna chochote, ni hiyo tu?
Ms. Vivian Akinyi: They closed, walifunga.
Mr. Mwai Ruingi: Madam, you are talking of three; are you one or you are two or
three?
Ms. Vivian Akinyi: It was the company.
Mr. Mwai Ruingi: Who was investing?
Ms. Vivian Akinyi: Yes.
Mr. Mwai Ruingi: What is the name of the company or companies?
Ms. Vivian Akinyi: We did it joint with my partner, but it was for the company – it was
going for Zesty Produce.
Mr. Mwai Ruingi: And the directors were you and somebody?
Ms. Vivian Akinyi: Yes.
Member: Madam, what do you do in life?
Ms. Vivian Akinyi: I am a business person.
Member: And you had borrowed this money from the bank or it was your saving?
Ms. Vivian Akinyi: It was just the company money.
Ms. Emily Mwachoo: Thank you. Akinyi, could you kindly give us your first name, so
that we can two names; because there can be thousands of ‘Akinyi’.
Ms. Vivian Akinyi: Vivian.
Report of the Taskforce on Pyramid Schemes
181
Hon. Francis Nyenze: Thank you Vivian for the information. Leave us with a copy of
that information so that we follow that and see how we can make Sasanet pay back that
money.
Ms. Vivian Akinyi: Can I ask a question to the Task Force?
Hon. Francis Nyenze: Yes, you can ask, by all means.
Ms. Vivian Akinyi: Okay, we did this in good faith, especially Sasanet – we thought it
was something that was over the Board, done by a reputable lawyer and actually the man
made obligation to that point where there were so many that came up. As a Task Force,
what do you think about our money? Is there possibility-- you know the usual
government thing of--
Hon. Francis Nyenze: Vivian Akinyi, I get you very well. You know this Task Force
was formed because of the outcry from the public that they have lost so much money and
do we let these people go scotch free? Were there some frozen accounts whereby we can
just get it, get this money and pay up the people, even if it is not the whole amount. So,
this is an attempt by the government to save this situation. So, trust us to do the best we
can; and we are not like any other Task Force. We are very committed and that is why
we want you to share with us all the information, all the documents and after two months,
you get the response.
So, we want everybody to switch off their phones so that the business moves on as fast as
possible. Thank you, Vivian. Make sure the documents are all here. We want to hear
anybody else from Sasanet who is here. Come, madam. Give her the mic.
Ms. Rosemary Banja: I am Rosemary Achieng’ Banja. I got first invested with
Sasanet in 2006. I gave them Shs400,000/- That year they paid me as they planned.
They gave me the cheque for the whole year, which I got.
Hon. Francis Nyenze: The interest?
Ms. Rosemary Banja: Yes.
Hon. Francis Nyenze: How much did they give you?
Ms. Rosemary Banja: They gave me six cheques of Shs.100,000/- each.
Hon. Francis Nyenze: Can you repeat that so that we capture it here?
Ms. Rosemary Banja: I invested in 2006. That year they gave me six cheques of
Shs100,000/- each. Then come 2007, I saw it was good because they cheques were being
cleared and I got the money and it was good. Come 2007, I gave them Shs.2.4.
Report of the Taskforce on Pyramid Schemes
182
Hon. Francis Nyenze: 2.4 million?
Ms. Rosemary Banja: Yes. (pause) And that is when things went bad.
Hon. Francis Nyenze: You never got anything?
Ms. Rosemary Banja: I got the first payment – which was-- that year they did not give
me a cheque, they were to use the money transfer kind of thing. Then I got my first
payment-- I was to be paid after three months and get 752,400. I got the first one in July,
2007. That was my first payment.
Hon. Francis Nyenze: Shs.752,400/-?
Ms. Rosemary Banja: Yes. So, the next one was to be in October, but after that July
payment, they sent an SMS that they were strategizing – something of the sort – that we
should give them 45 days. We waited patiently, then after 45 days I went and they told
me it was 45 working days; so the days were to be more than I expected. Then, they
were never there!
Hon. Francis Nyenze: Then you went the third time now.
Ms. Rosemary Banja: Now I was being impatient, I went there but the office was
closed. They wrote there, we should not disturb Camilla, he is not part of the team and
Camilla was never to be seen and we never heard from them again.
Hon. Francis Nyenze: So, you lost the total?
Ms. Rosemary Banja: Yes, I lost the total.
Hon. Francis Nyenze: That is the payment plus the interest they promised you.
Ms. Rosemary Banja: You see, the Shs400,000/- the first one, was to expire in August,
2007. Then, when I went to claim my money back, they told me that I’d rather renew
the 400,000/-. Meanwhile, I had re-invested the 204,000/- earlier in April.
Hon. Francis Nyenze: Okay.
Ms. Rosemary Banja: So, the total amount – if they are to refund me all my money, it
should be 2.8.
Hon. Francis Nyenze: 2.8 million?
Report of the Taskforce on Pyramid Schemes
183
Ms. Rosemary Banja: Yes.
Hon. Francis Nyenze: Thank you, Rosemary. Were you dealing with the same
directors as Akinyi?
Ms. Rosemary Banja: Yes.
Hon. Francis Nyenze: Okay. The lawyer was Camilla Sidondo?
Ms. Rosemary Banja: Camilla Sidondo Mwangi.
Hon. Francis Nyenze: Okay. Any other reaction or we just go to the next one? Okay,
additional information?
Ms. Rosemary Banja: You know, it was hard because they even had a seal kind of
rubber stamp.
Hon. Francis Nyenze: Correct. You know what we do, you leave us with the photocopy
of the details and we will follow it up. Now, we want to move to the next person; we
have heard from Sasanet and we do not want to-- you came early. Is there any one else
from Sasanet? Okay, let us hear from a different person. This lady in front here; give her
the mic.
Ms. Eunice Ogolla: Hamjamboni. Zangu, they are so many. I just listed them down
and only the capital; I have not broken them down as to how they wanted to pay us. I
have written the names of the investment places and the dates.
Amb. John Mukuriah: Anza na jina.
Ms. Eunice Ogolla: I am Mrs. Eunice Ogolla. Now, do I start with DECI?
Amb. John Mukuriah: On 19th January, I had put 12,800/-, 96,000/- in DECI. Then on
29th January, 320,000; 96,000; 32,000; 32,000.
Hon. Francis Nyenze: 32,000 again?
Ms. Eunice Ogolla: Yes. Now, there is this one known as Excellors Investment.
Amb. John Mukuriah: Hold on, hold on. Hiyo ni DECI sasa. Give us DECI . If you
can give us the total; I am sure you know the total.
Report of the Taskforce on Pyramid Schemes
184
Ms. Eunice Ogolla: The problem is that I was just laying them down.
Hon. Francis Nyenze: It is coming to nearly a million.
Amb. John Mukuriah: It is nearly a million. Okay, just move to the next.
Ms. Eunice Ogolla: Excellors – on 12th March, 3,000/-
Amb. John Mukuriah: Eight thousand?
Ms. Eunice Ogolla: Three thousand. There is Fino on 20th April, 10,000/-; Mark
Investment, 20,000/- on 4th May. Ripe Investment, 7th May – 5,000/=.
Amb. John Mukuriah: Did you call it Ripe - R-I-P
Ms. Eunice Ogolla: R-I-P-E. and another one the same date, 15,000/-.
Amb. John Mukuriah: Fifteen thousand to who?
Ms. Eunice Ogolla: Fifteen thousand to Ripe. There is another one, Macs – 17th May,
20,000/-; Multiblank, 300,000/-
Hon. Francis Nyenze: How much.
Ms. Eunice Ogolla: 300,000/-
Hon. Francis Nyenze: 300,000/-?
Ms. Eunice Ogolla: Yes. I do not know whether we include the processing amount of
shs.4,000/- Administration was shs.500/-. That was on 23rd May. Another Montblanc
on 11th April – 600,000/-.
Hon. Francis Nyenze: Which one?
Ms. Eunice Ogolla: April 11th, Monblank which I was given 500 shillings cheque and it
bounced.
Amb. John Mukuriah: How much was that in April, again?
Report of the Taskforce on Pyramid Schemes
185
Ms. Eunice Ogolla: 600,000/- I cannot remember the processing fee. I was just laying
them down. Then, there is Case Investment on 17th November, 2007, 200,000/-. Then
there was Phyben Investment, 20,000/- on 3rd May. The registration fee was 200/-. And
then there is Plateu on 3rd May also.
Amb. John Mukuriah: Plateu Investment?
Ms. Eunice Ogolla: Yes. 10,000/- and registration is 200/-. Then the last one is Fippa
Investment on 3rd May, 20,000/-. Registration was 200/-.
Amb. John Mukuriah: The last one was F-I-C-C?
Ms. Eunice Ogolla: F-I-P-P-A.
Amb. John Mukuriah: Investment; 20,000/-.
Ms. Eunice Ogolla: I am sorry, I never thought of them because there are some receipts
which I cannot get in the house, I am still yet to get them.
Amb. John Mukuriah: Starting from the bottom; FIPPA, can you remember the
director and where they are ?
Ms. Eunice Ogolla: They were down near Globe Cinema.
Amb. John Mukuriah: No idea about the directors?
Ms. Eunice Ogolla: No, no, no.
Amb. John Mukuriah: What about Plateu?
Ms. Eunice Ogolla: I am not very sure. Somebody would tell you there is a place and
you go and put the money and we would rush and not even find out.
Amb. John Mukuriah: So, where did you take the money, then? Pesa ulilipa wapi?
For FIPPA, where did you pay the money then? In a bank account, in their offices?
Ms. Eunice Ogolla: In their offices.
Amb. John Mukuriah: In their offices?
Ms. Eunice Ogolla: Yes.
Report of the Taskforce on Pyramid Schemes
186
Amb. John Mukuriah: And you do not know where they are?
Ms. Eunice Ogolla: I know the place but I cannot remember the name of the place.
Amb. John Mukuriah: So you said they are still there--
Ms. Eunice Ogolla: That same area around Globe Cinema there.
Amb. John Kukura: Phyben?
Ms. Eunice Ogolla: Same.
Amb. John Mukuriah: Same; and you cannot remember the name of any director
anywhere? Any information that can help us?
Ms. Eunice Ogolla: I have some receipts here, so I do not know--
Amb. John Mukuriah: Case Investment?
Ms. Eunice Ogolla: I have the--
Amb. John Mukuriah: It is somewhere here-- (perusing documents)
Ms. Eunice Ogolla: I know the director’s name – Okoba.
Amb. John Mukuriah: 200,000/- is a lot of money you cannot just give it to a guy. So,
it is Okoba. Do you remember the building or the street?
Ms. Eunice Ogolla: I know the building; I have the information.
Amb. John Mukuriah: So, you will give us the information, if you do not mind so that
we-- and Multiblanc that I took--
Ms. Eunice Ogolla: Yes, Multiblank is the same--
Amb. John Mukuriah: Mac wako wapi?
Ms. Eunice Ogolla: They were putting the money in two buildings; first of all they
were at Development house, 13th Floor.
Report of the Taskforce on Pyramid Schemes
187
Amb. John Mukuriah: Uh, Development House?
Ms. Eunice Ogolla: Yes.
Amb. John Mukuriah: Waw!
Ms. Eunice Ogolla: The second time they took it, we went to Gill House, 3rd Floor.
Amb. John Mukuriah: Ripe?
Ms. Eunice Ogolla: Railway Go-down.
Amb. John Mukuriah: Railway Go-down. Can you remember the name of the
director, if any?
Ms. Eunice Ogolla: No.
Amb. John Mukuriah: Mac is sorted out, DECI we know. Fino?
Ms. Eunice Ogolla. Fino is Kenyatta Market.
Amb. John Mukuriah: Excelor, we know; DECI we know and so we do not have no
problem with the director there. So, what do you do in life, this is too much money?
What do you do?
Ms. Eunice Ogolla: There is nothing I can do about it because nobody thought that; we
just went and we thought it was something real. Some people were telling us they were
pastors, some were, you know. So, I lost because there is nothing I got from all that
money – over 2 million.
Amb. John Mukuriah: So, what kind of business do you do?
Ms. Eunice Ogolla: I am a retired teacher.
Amb. John Mukuriah: You are a retired teacher?
Ms. Eunice Ogolla: And that money was family money.
Amb. John Mukuriah: Uh, oh my.
Report of the Taskforce on Pyramid Schemes
188
Hon. Francis Nyenze: Thank you, very much, Mrs Ogolla. These are your receipts.
Before you sit, Dr. Ligabo wants to ask you a question.
Dr. Machanja Ligabo: Yes, madam, do you have—apart from the information you
have given, do you have some details of every company you invested in; some little
details for us to make a follow up. Say, for example, if you talk about Excelor – the
receipt, this and that, some brochure. Can you avail it to us so that we can help?
Ms. Eunice Ogolla: They are there, I have them.
Dr. Machanja Ligabo: You have?
Ms. Eunice Ogolla: Yes.
Dr. Machanja Ligabo: Can you then arrange with the Secretariat, please?
Ms. Eunice Ogolla: Yes, we have already reported outside there. We have given them
the photocopies.
Dr. Machanja Ligabo: Thank you.
Ms. Eunice Ogolla: Thank you very much.
Hon. Francis Nyenze: Thank you, very much, Mrs Ogolla. I am sorry for losing so
much money. You have been into 10 pyramid schemes and through the church you were
promised good things which you never got. Now, we want to hear from the next investor
from any of those, DECI, etc, anybody who wants to tell us where they invested, what
was the sum and how they lost. Madam, do you want to?
Participant: I do not have the receipts.
Hon. Francis Nyenze: You do not have the receipts? But you have the story and you
can bring the receipts? You know this is a public hearing; we just want to hear, we get
the facts so that we follow those people. So, anybody can present because this is a public
hearing. We want to get data from you people. Okay, the lady at the back, come. Give
her the mic.
Report of the Taskforce on Pyramid Schemes
189
Ms Rhoda Maundu: Good morning. My name is Rhoda Maundu. I invested in Clip in
June 2007. I saved 200,000/- I was supposed to get 20,000/- every month until
December, which I never did.
Amb. John Mukuriah: You get 20,000/-
Ms. Rhoda Maundu: Every month.
Amb. John Mukuriah: For five months.
Ms. Rhoda Maundu: Six months – from June to December.
Hon. Francis Nyenze: And you never got anything?
Ms. Rhoda Maundu: I got nothing and we were being forced to buy a book before you
register.
Amb. John Mukuriah: You buy a book; how much?
Ms. Rhoda Maundu: It would depend on the book you choose.
Amb. John Mukuriah: What sort of books are these?
Ms. Rhoda Maundu: Like I bought one for Abortion.
Amb. John Mukuriah: At what cost?
Ms. Rhoda Maundu: I bought that one for about 400/- but there were some going for
20,000/- a book.
Hon. Francis Nyenze: Rhoda, you were introduced to Clip by a friend?
Ms. Rhoda Maundu: By a colleague.
Hon. Francis Nyenze: A friend?
Ms. Rhoda Maundu: Yes.
Amb. John Mukuriah: Who had benefited?
Report of the Taskforce on Pyramid Schemes
190
Ms. Rhoda Maundu: Yes, and they told me they had gotten money for eight years.
Hon. Francis Nyenze: So, there were people who benefited?
Ms. Rhoda Maundu: Yes.
Hon. Francis Nyenze: And you were the unlucky one?
Ms. Rhoda Maundu: The unlucky one, yea.
Amb. John Mukuriah: I hope you have kept your receipts and all that.
Ms. Rhoda Maundu: Yes, I have the receipts here.
Amb. John Mukuriah: Umepeana uko?
Ms. Rhoda Maundu: The copies, yes.
Hon. Francis Nyenze: That is very good. What do you do?
Ms. Rhoda Maundu: I was working with Jomo Kenyatta Foundation and that is the year
we were retrenched.
Hon. Francis Nyenze: And you put some money there?
Ms. Rhoda Maundu: Yes.
Hon. Francis Nyenze: Sorry, God will-- any additional information you would want to
give this Commission?
Ms. Rhoda Maundu: No, I think that is enough.
Hon. Francis Nyenze: Thank you, very much. We will try our best and thank you for
the information. We will do the best we can.
Ms. Rhoda Maundu: Thank you.
Hon. Francis Nyenze: Will you give the mic to this gentleman?
Mr. Moses Kihara: Good morning.
Report of the Taskforce on Pyramid Schemes
191
Members: Morning to you.
Mr. Moses Kihara: My name is Moses Mbugua Kihara.
Hon. Francis Nyenze: Moses Mbugua Kihara.
Mr. Moses Kihara: And I had invested with Clip after retirement, where I invested
400,000/- in the month of April.
Amb. John Mukuriah: When?
Mr. Moses Kihara: April 18th.
Amb. John Mukuriah: Which year?
Mr. Moses Kihara: 2007. I was introduced there by my fellow Christians.
Hon. Francis Nyenze: Your fellow?
Mr. Moses Kihara: Christians; because originally they were saying they wanted to
invest with Pastors and Elders but later on they agreed that anybody would invest with
them. They were telling us that the main aim was to help in the spreading of the gospel.
So, it was an agreement between me and them that I would be contributing 10% (tithe) in
the church.
Hon. Francis Nyenze: Ten percent?
Mr. Moses Kihara: I did not have any doubt because many of our partners from the
Full Gospel Churches of Kenya had already invested there and they were receiving their
interests or returns. So, you were to be paid 10% per month and the principal would be
returned after expiry of six months. They paid me only once in the month of July. When
I tried to get my prinical back, it was difficult. I went there several times but eventually,
it was closed. I later on reported to the Police Station and made a Statement at Lang’ata
Police Station – which is close to their offices on 23rd April, 2008 to a Police Officer, Mr.
P Maiyo. He gave me his telephone number, I talked to him several times and he could
not give me any information. He was only demanding from the investigation that I have
or any information I could have gotten. Up to now, I have not received anything. I am
asking you to help us get this money back. That is from Clip.
Report of the Taskforce on Pyramid Schemes
192
Hon. Francis Nyenze: Mr. Kihara, you invested Shs.400,000/-.
Mr. Moses Kihara: Yes, please.
Hon. Francis Nyenze: You were only paid once?
Mr. Moses Kihara: Only once – that is, 39,000 shillings.
Hon. Francis Nyenze: So, you lost 300,000/-
Mr. Moses Kihara: No, I lost 400,000/- because the principal had to be returned.
Hon. Francis Nyenze: Oh, the principal had to be returned?
Mr. Moses Kihara: After expiry of six months.
Hon. Francis Nyenze: So, you lost 400,000/- plus the other interest that you were not
paid?
Mr. Moses Kihara: Oh, yes.
Hon. Francis Nyenze: Okay. Any additional information? Have you left the copies of
those documents?
Mr. Moses Kihara: I had also invested in Circuit Investment.
Hon. Francis Nyenze: Investment.
Mr. Moses Kihara: And the director of that company was Mr. Emilio Kifue Mwangi. I
also invested with them 200,000 shillings and the principal had to be returned after expiry
of six months. They paid me an interest of 15%. They paid me for 4 months. In the
month of September, I went there and found the offices closed.
Hon. Francis Nyenze: September, 2007.
Mr. Moses Kihara: They told us to wait for a period of 45 days, which did not happen.
They did not open again. They were situated in Uniafric House, 3rd Floor.
Hon. Francis Nyenze: Uniafrican?
Report of the Taskforce on Pyramid Schemes
193
Mr. Moses Kihara: Yes, 3rd floor. The information I have regarding Circuit is that they
have registered a case at Milimani Court and what was in the account was frozen through
the lawyer. However, I have a list of some of the directors from Clip – about 8 of them.
Hon. Francis Nyenze: Utupatie.
(Members perusing the documents)
Hon. Francis Nyenze: You do not mind if we photocopy these and give you because
this is your original.
Mr. Moses Kihara: I can leave it, I have two.
Hon. Francis Nyenze: You can leave it?
Mr. Moses Kihara: Yes.
Hon. Francis Nyenze: Thank you very much Mr. Kihara Moses Mbugua. We will
follow that up. We want to hear from any other person.
Ms. Rosemary Wairimu: Good morning.
Member: Morning to you.
Ms. Rosemary Wairimu: I had invested with--
Hon. Francis Nyenze: Ongea pole pole because we are taking notes.
Ms. Rosemary Wairimu: Okay.
Hon. Francis Nyenze: Aanza na jina na tuendelee.
Ms. Rosemary Wairimu: Rosemary Wairimu. I had invested with Circuit Investment
200,000/-. The directors were Emilio Kifui Mwangi and Titus. They were two.
Amb. John Mukuriah: Do you know the other name for Titus?
Ms. Rosemary Wairimu: I cannot remember the other name but he is Titus.
Hon. Francis Nyenze: What was the commission?
Report of the Taskforce on Pyramid Schemes
194
Ms. Rosemary Wairimu: Fifteen percent and I was supposed to get my principal after
six months.
Hon. Francis Nyenze: How much were you given for how many months?
Ms. Rosemary Wairimu: I was given for four months.
Hon. Francis Nyenze: When you went back to get the other payment, what did they tell
you?
Ms. Rosemary Wairimu: They had already closed their office.
Hon. Francis Nyenze: You found they had closed? Any further information?
Ms. Rosemary Wairimu: It was in March.
Amb. John Mukuriah: Which year?
Ms. Rosemary Wairimu: 2007. I paid with the Banker’s Cheque. I have the copy
certified correct from the original. I have all of them.
Hon. Francis Nyenze: And you have given them to our--
Ms. Rosemary Wairimu: I will bring them tomorrow..
Hon. Francis Nyenze: You will bring them tomorrow?
Ms. Rosemary Wairimu: Yes.
Amb. John Mukuriah: Is that all? And one month interest or two months’ interest. Is
that all?
Ms. Rosemary Wairimu: Then, I had invested with Jitegemee Sacco.
Hon. Francis Nyenze: Jitegemee, endelea.
Ms. Rosemary Wairimu: 60,000/- I never knew about the directors, but they were
four.
Report of the Taskforce on Pyramid Schemes
195
Hon. Francis Nyenze: What were you to get?
Ms. Rosemary Wairimu: I was to get 100,000/-.
Hon. Francis Nyenze: You double the money?
Ms. Rosemary Wairimu: Yes.
Hon. Francis Nyenze: After how many months?
Ms. Rosemary Wairimu: After one month.
Hon. Francis Nyenze: Okay.
Amb. John Mukuriah: What happened?
Ms. Rosemary Wairimu: They closed the office.
Amb. John Mukuriah: Within the month you invested?
Ms. Rosemary Wairimu: I did not get.
Hon. Francis Nyenze: You will bring the documents of the transactions tomorrow.
Ms. Rosemary Wairimu: The Banker’s cheque.
Hon. Francis Nyenze: You bring that one tomorrow then.
Ms. Rosemary Wairimu: I had also invested with Macs Investment a total of 40,000/-
Hon. Francis Nyenze: Yes.
Ms. Rosemary Wairimu: Even that one we never knew who were the directors.
Amb. John Mukuriah: What was the Contract?
Ms. Rosemary Wairimu: It was supposed to be paid three times.
Amb. John Mukuriah: After one month?
Report of the Taskforce on Pyramid Schemes
196
Ms. Rosemary Wairimu: After three weeks.
Hon. Francis Nyenze: After three weeks.
Ms. Rosemary Wairimu: There was another one that was called Golden Life Concept.
I had invested 30,000/-. The directors were Susan Ringera and Damaris Obiero.
Hon. Francis Nyenze: Thirty thousand. Yes, were you paid anything?
Ms. Rosemary Wairimu: No, I was not paid anything.
Hon. Francis Nyenze: And after 30,000/- what were you supposed to get?
Amb. John Mukuriah: I was to get around 75,000 shillings.
Hon. Francis Nyenze: After how long?
Ms. Rosemary Wairimu: After four weeks.
Hon. Francis Nyenze: After four weeks you were supposed to get 75,000/-.
Ms. Rosemary Wairimu: Yes.
Hon. Francis Nyenze: Do you remember when you invested in Golden Life Concept?
Ms. Rosemary Wairimu: No, I cannot remember exactly but it was during the month
of March.
Hon. Francis Nyenze: March, 2007?
Ms. Rosemary Wairimu: Yes. I had also invested with Armiti Investment, Prestige,
which was at Westlands. I invested 100,000/-.
Hon. Francis Nyenze: How much, 100,000/-?
Ms. Rosemary Wairimu: Yes and I was not paid anything.
Amb. John Mukuriah: What was the Contract?
Report of the Taskforce on Pyramid Schemes
197
Ms. Rosemary Wairimu: No, it was not a contract, it was supposed to be paid after four
weeks.
Amb. John Mukuriah: Oh, that is the Contract. After four weeks you were to get
what?
Ms. Rosemary Wairimu: Three hundred.
Amb. John Mukuriah: Multiphy by three.
Ms. Rosemary Wairimu: I paid cash.
Hon. Francis Nyenze: You paid cash?
Ms. Rosemary Wairimu: Yes and the director was Charles Mureithi Kirigwa. We even
wrote a Statement at Police Headquarters and the case was being done by Mr. Katola and
there were two Police Officers; Mr. Ababu and Mr. Kinoor. We even had a case at the
High Court na wakatumia huyo bibi yake wakasema hawana any evidence. The wife was
at the High Court.
Hon. Francis Nyenze: Wakashinda?
Ms. Rosemary Wairimu: Eh, wakashinda hiyo kesi.
Hon. Francis Nyenze: Even when you had the receipt.
Amb. John Mukuriah: Armit Prestige, how did you come know about them?
Ms. Rosemary Wairimu: It was through a friend. They were first at Railways, then
they opened another office at Westlands.
Amb. John Mukuriah: What about Golden Life Concept; through a friend?
Ms. Rosemary Wairimu: It was through a friend. You know we were retrenched from
Telecom Kenya, so most of us--
Amb. John Mukuriah: You were initially in Telecom Kenya.
Ms. Rosemary Wairimu: Yes.
Amb. John Mukuriah: And also for Mac Investment also through a colleague?
Report of the Taskforce on Pyramid Schemes
198
Ms. Rosemary Wairimu: Through a colleague.
Amb. John Mukuriah: Even Jitegemee?
Ms. Rosemary Wairimu: Even Jitegemee was through a colleague.
Hon. Francis Nyenze: Who had benefited?
Ms. Rosemary Wairimu: Yes, they had invested early and had got their money.
Hon. Francis Nyenze: They got their money.
Ms. Rosemary Wairimu: Yes.
Hon. Francis Nyenze: Sorry, poor you.
Amb. John Mukuriah: And Circuit, Rosemary, through friends?
Ms. Rosemary Wairimu: Yes.
Ms. Emily Mwachoo: Did those friends have any evidence which they showed you?
Ms. Rosemary Wairimu: Yes, they were being paid.
Ms. Emily Mwachoo: Thank you.
Hon. Francis Nyenze: Rosemary, thank you for that. We will do our best. So,
tomorrow make sure you bring the documents. Thank you. Now, we want to hear from
another person, because this is a public hearing and we are recording the data. Yes, that
lady at the back and then we will come to you, sir.
Ms. Deborah Obwana: Good morning, everybody.
Members: Good morning to you.
Ms. Deborah Obwana: My names are Deborah Obwana. I invested with Macs Welfare
Association. That was on 3rd of May. I had invested there 17,000/- and 200/- for
registration. Then on the same month, 11th of May, 2007, I invested another 30,000/- and
200/- for registration. The same month I went back and deposited with them again
another 30,000/- and 200/- for registration. All these were to be paid after one month at
an interest rate of three times the initial deposit. So, in the month of early May, when I
invested 17,000, I was supposed to get 51,000/-. Then on 11th May, when I invested
30,000/- I was supposed to get 90,000/- on the 6th of June, 2007 and the other one I was
supposed to get on the 7th of June. Then the last one which I invested on 23rd, I was
supposed to get 120,000/-; this was times four. So, when the days were approaching, I
went to the office and found that the director and her team had already moved out of the
building which was Gill House, 3rd Floor. So, from there, we started panicking and we
looked for a lawyer. This encouraged us that he will be able to fight for us. So, we went,
we flocked there, we paid the lawyer’s fee which was 3,000/-. We were registered but in
Report of the Taskforce on Pyramid Schemes
199
the end, I am told the lawyer went into hiding. He said he was fearing for his life. But
still, some of us pressed on. We even went and registered at the Anti-corruption. After
registering there, we still pressed on then the same lawyer came up and told us we need to
go and write a Statement at Central Police Station. We went and registered but these
people were taking in people in a group of ten. So, it is only the ten people whose case
has been heard. I have not been following up because I was not among the ten. So, I
expected may be, the ruling for the final group was supposed to be in December of which
I do not know up to now. Last week, I was informed that there is this issue that the
government has started off at least to find out ways and means to help the investors.
So, I do believe that this Team plus the government will try to help us because we have
lost so much.
I also invested in another organization called Family In Need Organization which was in
Kenyatta Market. This one was supposed to be an organization of a Christian – you
know, a man of God. That is why most of us rushed there because we believed this was a
most trusted person. Unfortunately, he also ran away and we were not paid. There I had
invested 10,000 from which I was supposed to get 20,000 after one month.
There was another one called Uvuli.
Amb. John Mukuriah: The other one called what?
Ms. Deborah Obwana: Which was situated that is next to-- in Haille Sellasie next to
JIAM Ministry and I also knew that this belongs to Honorable-- it is getting out of my
mind. So, this one I had invested 10,000/- shillings from which I was expecting a total of
30,000 after one month. But, within a few days--
Amb. John Mukuriah: You invested 10,000/- and was expecting what?
Ms. Deborah Obwana: I was expecting 30,000/-.
Amb. John Mukuriah: After how long?
Ms. Deborah Obwana: After two months.
Hon. Francis Nyenze: Thank you, Deborah. You have really told us how you invested
in those pyramid schemes and the amounts. Have you left the documents with our
Secretariat?
Report of the Taskforce on Pyramid Schemes
200
Ms. Deborah Obwana: Not yet, I am just--
Hon. Francis Nyenze: Please make photocopies and leave them with them. That would
be nice and we will take care of that.
Ms. Deborah Obwana: But the director was called Grace Mathenge.
Hon. Francis Nyenze: Mathenge? Matheka?
Ms. Deborah Obwana: Mathenge.
Hon. Francis Nyenze: Of Macs?
Ms. Deborah Obwana: Yes.
Hon. Francis Nyenze: Thank you, very much for that information. Okay, now because
there are many members who are coming and some have been raising up their hands, I
will call that gentleman in blue and then we go to that Mzee – macho nne then--
Mr. Harry Karicho: Thank you very much. Good morning. My names are Harry John
Karicho. I invested with Clip Investment in December, 2008. I invested 250,000/- on a
Contract of 6 months at an interest of 10% per month. For the first five months, I got that
interest without fail. The sixth month is when I was supposed to collect my principal or
renew the Contract. I decided not to renew the Contract and get my principal. When I
went for the principal I was told to wait for 45 days for them to restructure their
investment. After waiting, when I went there again, they had already closed. So, I lost
my 250,000/- I would like you to excuse me to present two of my immediate family
members who are still members of Clip – we were together. I have one, my daughter,
Teresia Wangare Kariso. She invested 1,250,000 in February, 2007 at the same interest
of 10% for five months and renew the Contract or take the principal amount after six
months. For the five months, from February 2007, she got her interest promptly for five
months up to July. When she went to get the principal amount, she was also told to wait
for 45. After she waited for 45 days, after she went back, they had already closed and she
never got her principal of 1,250,000/-.
Number three is her husband – Josephat Ndoria Joripah who invested with Clip in
November,2006. He invested 450,000/- shillings on a Contract of six months at an
interest of 10%. For the five months, through December, he got the interest promptly.
When he went back to get the principal amount, he was also told to wait for 45 days.
When he heard the story that other people were being told to wait for 45 days and they
Report of the Taskforce on Pyramid Schemes
201
were not getting the principal, he decided to re-invest again. He was advised that it is
better to re-invest again and then he would be getting his interest as usual. So, he signed
another Contract to re-invest instead of taking the principal which was not possible to get.
He had hoped that he would be getting the interest.
So, after signing the second Contract for the same amount, 450,000/- when he went for
the first month interest, he found the offices closed. The same Josphat Ndoria Joripah got
another loan from the bank and invested with Circuit. He invested 800,000/- shillings in
March, 2007 at an interest of 15% per month. He signed the Contract for one year. The
Circuit Contract was for one year, at an interest of 15% for whatever amount one
invested. So, for three months, he received the interest as per 15% promptly. It was by
cheque. When he went there for the fourth month interest, he found the offices had
already closed.
What I would request is, honorable members, most of these people are really suffering,
especially this family of mine – my daughter her husband – had taken loan from a bank
and actually today, their salary is going almost into paying the loan and I am trying to
support them for their daily living. They have another two years to repay the loan with a
total of Shs.70,000/- per month; otherwise auctioneers would take everything they have.
Thank you very much.
Hon. Francis Nyenze: Thank you very much, Harry John for that very, very clear
presentation. and we are very sorry for that, it is very moving. Without wasting time
because it was very clear and detailed, we will give this to another member. There is an
old mzee there who lifted up his hands a long time ago. Let us hear from him.
Mr. John Njoroge: Good afternoon. My names are John Njuguna Njoroge.
Amb. John Mukuriah: Hatukusikii.
Mr. John Njoroge: My names are John Njuguna Njoroge. I invested with Sasanet on
21st March, 2007. I invested Shs.700,000/-. Interest was something to do with around
16%. I got Shs.179,550/-.
Amb. John Mukuriah: We are not getting it; Shs.700,000/-.
Mr. John Njoroge: The investment was for 700,000/-.
Amb. John Mukuriah: For one year?
Report of the Taskforce on Pyramid Schemes
202
Mr. John Njoroge: Yes, for one year, at 16%. The registration fee was Shs.3,000/-
Then, I was supposed to be getting Shs.179,550/- after every three months. So, I got the
first installment on 24th June, 2007 and that was all. The second, third and fourth did not
come. The agreement was, it was supposed to end on 24th December, 2008 and they
could have refunded 766,000/- minus 5% withholding tax and then I do not know what
else happened. I think they are no more.
Then the investors had a meeting at the Professional Center some time back. We were
supposed to contribute Shs.5,000/- each so that the case could be taken to the High Court.
We did that – there are some members here who can bear that witness. We have not
heard either from the Court or wherever. There is a Mike Chege, who was signing on
behalf of the Society as the Chairman.
Mr. John Njoroge: I think so, if he was in Sasanet. All in all, we are four members of a
family; we have lost more than 6 million shillings.
Hon. Francis Nyenze: Four members lost 6 million.
Mr. John Njoroge: In the same family.
Hon. Francis Nyenze: When you say four members you mean four members in a
family or a group? Are you saying, as a family, you four members have lost 6 million.
Mr. John Njoroge: Yes, the four of us.
Hon. Francis Nyenze: How are you related, is it your brothers or your friends?
Mr. John Njoroge: Me and my in-laws.
Hon. Francis Nyenze: Oh, you and your in-laws.
Mr. John Njoroge: Yes.
Hon. Francis Nyenze: To Sasanet or?
Mr. John Njoroge: To Sasanet only.
Hon. Francis Nyenze: Six million. Can you give us the names of these people who
have lost besides you.
Report of the Taskforce on Pyramid Schemes
203
Mr. John Njoroge: Okay, there is Agnes Munene; she is currently in the United States.
There is the brother, Davis Munene.
Hon. Francis Nyenze: Agnes invested like how much?
Mr. John Njoroge: I think it was about 2 million.
Hon. Francis Nyenze: The other one?
Mr. John Njoroge: The brother and wife – Davis Munene and Mrs Munene had about 3
million; and then--
Hon. Francis Nyenze: And yourself?
Mr. John Njoroge: Yes.
Hon. Francis Nyenze: Thank you very much, John Njuguna for your presentation.
Have you given the papers of those details to our-- It is also very clear from what you
have said. Now, we want to hear from a lady, we have had men following each other.
As ladies prepare, let us hear from this gentleman.
Mr. Gabriel Nyangao: Good morning. My name is Gabriel Nyangau.
Hon. Francis Nyenze: Gabriel Nyang’au, yes.
Mr. Gabriel Nyangao: Not Nyang’au, but Nyangao.
Hon. Francis Nyenze: Endelea.
Mr. Gabriel Nyangao: I invested with Golden on 20th May, Shs.10,400/-; 21st May,
Hon. Francis Nyenze: Just a moment; when you say, Golden, it is Golden what?
Mr. Gabriel Nyangao: Golden.
Hon. Francis Nyenze: It was Golden Investment or--
Mr. Gabriel Nyangao: Golden Investment.
Hon. Francis Nyenze: Okay. You invested Shs.10,400/- endelea.
Report of the Taskforce on Pyramid Schemes
204
Mr. Gabriel Nyangao: That was on 20th. On 21st, I invested again 15,600/- . I never
received anything until they closed.
Hon. Francis Nyenze: What did they promise, let us say the Golden Investment? When
you put the 10,400/- were you to get interest?
Mr. Gabriel Nyangao: They promised me I would get 2.5 times the amount.
Hon. Francis Nyenze: Okay.
Amb. John Mukuriah: Can you remember the directors?
Mr. Gabriel Nyangao: The one I know is called Betty Agina. Again, I invested with
DECI. They were situated at Hazina Towers – on 30th January, 2007. I invested with
them Shs.32,000/-. On 31st of the same month, I invested again Shs.32,000/-. On 8th of
February, I invested again Shs.32,000/-. Then, the following day, 9th I invested again
Shs.32,000/-. I never received anything until they closed.
Amb. John Mukuriah: What was the Contract?
Mr. Gabriel Nyangao: The Contract said that when you invested Shs32,000/- after 13
weeks, you get your parent.
Amb. John Mukuriah: After 13 weeks, unapata nini?
Mr. Gabriel Nyangao: You get double the amount.
Hon. Francis Nyenze: Okay, thank you very much, Gabriel Nyangao. I am sorry, we
will follow up that. Have you given the details.
Mr. Gabriel Nyangao: Yes, I have given in the details.
Hon. Francis Nyenze: Thank you.
Mr. Gabriel Nyangao: What I want to say is that I want to congratulate the government
for coming up with the Task Force because right now we are now experiencing a lot of
difficulties in life, especially right now, I cannot be able to pay the school fees. I lost a
job. So, we are hoping for a good outcome.
Report of the Taskforce on Pyramid Schemes
205
Hon. Francis Nyenze: Okay, we will do our best and God will bless you. We said we
would give the chance to a lady then we come to that gentleman. Any lady seated here
who experienced some problem like that? Okay, gentleman, you can come.
Mr. Jonathan Omukala: Good morning.
Members: Morning to you.
Mr. Jonathan Omukala: My names are Jonathan Tanda Omukala. Those are my
names. I stand here to symphathise with my friends who have lost a lot of money. I was
supported by my Pastor to do some investment. While I was doubting, he told me to pray
and he referred me to an investment called Golden Life Concept Ltd. That was on 17th
May, 2007. I went there and found a crowd of people – along line. They were paying
money. My Pastor had told me that you do not start with a lot of money. Just put
10,000/- or 5,000/- and then after two weeks, put again another 5,000/-. I do not
remember the duration, but it was something like, after two weeks or a month you get
some dividends and then you can renew it. I started with 2,500/-. I was unfortunate
because those were the dying moments. After two weeks I was told that place had closed
down. When I went there, the corridor was empty. I could not imagine that the crowd I
saw there, you could find the place empty.
This was not an investment, it was a school fees. There is a body called Clout. Initially
we did not link this with Pyramid schemes. It is only recently that I realized that this
must be a pyramid scheme. I was also approached by a church member. We went there.
They were registering people at Kilimani. I found a big crowd there. I was told that they
want only 10,000 people. They kept on extending, so they must have registered quite a
number of people. The concept was that you can register one child or three children – or
even ten, depending on what number you have. In our case, they were going to pay all
the amount for school fees. The maximum was Shs.80,000/-. I had a child in university,
and I found that as an opportunity because I had been retrenched. So, I registered for the
two children. One was to go to college and the other one to university. So, I paid a total
of Shs.11,000/- and they kept on postponing.
Hon. Francis Nyenze: You paid how much?
Mr. Jonathan Omukala: I paid Shs.11,000/- for two children. We did not know it was
going to take such a long time. When we found it was taking a long time, the office
locked up, we were referred somewhere else. We went there and tried to follow with
them and they were lost again. They have just been dily-dalling. So, that one, I do not
know if you have heard about it, but it is also a pyramid.
Report of the Taskforce on Pyramid Schemes
206
Amb. John Mukuriah: It is the first time we are hearing about it, but we are expecting
to come across many more pyramids because they are not all known.
Mr. Jonathan Omukala: I think this one of Clout has some connenction in Uganda. I
heard it started in Uganda, came to Kakamega, then it came to Nairobi. They have got
billions of shillings, anyway. So, I am appealing to this Task Force to do something
because, not only on my behalf, because I may have invested a little money but I know
friends who have invested a large sum of money. I have one friend who invested
Shs.300,000/- and he was lucky to earn about two months and the thing closed down. So,
I have a number of friends also. I am symphasizing and I beg this Task Force to do
something.
Amb. John Mukuriah: Thank you very much. We got your story. Now, next. Kama
kuna mama anataka kuzungmuza kidogo, ladies. If there is no lady we can have
whoever is available. Good, it seems as if we have done very well.
Ms. Benta Okonja: My name is Benta Okonja. I lost money in seven schemes. The
first one which I came to learn was called Sasanet. When I was called, I was told the
minimum is Shs.100,000/-, I found that they had changed to a minimum of Shs.500,000/-
I looked for money, I even sold a small plot in Kitengela and took the Shs.500,000/- the
following day. So, we were told we would be earning 8% per month. I never earned
anything until it closed.
The second one is Jitegemee; it was called Montblank then it changed to Jitegemee. I
was told it was in Masaba Hospital. I went and registered with 150,000/- . I did not earn
anything. The third one where I invested was called Armit down at Railway but it was so
crowded. Then I was told there is a Prestige one coming at the end of the month called
Armit Prestige in Westlands, Soin Arcade, 3rd Floor. I went there and invested 200,000/-.
They said the money would multiply three times. So, from the Shs200,000/- I was
expecting Shs600,000/-. That was on a Friday. On Monday, I got another Shs100,000/-
and took there. I was expecting Shs.900,000/-. My due date came and when I went for
the money I found the boss who told me they were in a small meeting and if my due date
is today, come tomorrow. When I went there the following day on Wednesday, I found it
was closed. I found people there and they said they had closed and went.
I also invested in one in Uchumi House called Magnon Investment. In Magnon, we were
to get three times the investment. I invested 150,000/-. I took Shs50,000/-, Shs.50,000/-
and 50,000/-. Then there was another one on Gilfilan House.
Report of the Taskforce on Pyramid Schemes
207
Amb. John Mukuriah: You invested a total of what?
Ms. Benta Okonja: One hundred and fifty; fifty times three.
Amb. John Mukuriah: What was the interest you would be getting?
Ms. Benta Okonja: Times two; double.
Amb. John Mukuriah: Double; did it ever double?
Ms. Benta Okonja: I had just lost my job, so I had money, anyway. Then I went to
Gilfillan House, there is one called Benmar. This Benmar was going to be times three.
Amb. John Mukuriah: Can you spell it out for me?
Ms. Benta Okonja: B-E-N-M-A-R. Benmar Investment Group. There I invested a
total of Shs.90,000/-; twenty times four. Then there was this one--
Amb. John Mukuriah: What was the Contract; from 80,000/- you get what, double or
what happened?
Ms. Benta Okonja: It was supposed to be times three. Sixty, sixty, sixty.
Amb. John Mukuriah: It was supposed to be times three after how long.
Ms. Benta Okonja: Times three after three weeks. There was an offer – it was four
weeks before, then that week there was an offer – I did not know they had a plan of
closing and that is why the offer was there because people were many. Then there was
this one which was called Excelors on Union Towers. There I also took my Shs.50,000/-
- twenty, twenty and ten. All my money went – all I worked for went totaling to 2.3
million. Todate, I have not earned even a single cent, I am in the house, I do not have a
job. Whoever took this money is cursed.
Hon. Francis Nyenze: Thank you very much and we are sorry for that and we will do
the best we can. Have you given us the photocopies of the Contracts? There is a
gentleman at the back there. Those who said they have gone to Court should furnish us
with the Court cases and where they went so that we can also follow it up.
Mr. Regiment Anyanjwa: Kwa jina ninaitwa, Regiment Anyanjwa na nilikuwa
nimeweka pesa mahali mbali mbali. Ya kwanza ilikuwa inaitwa Circuit Investment.
Hapo Circuit niliweka 400,000/- . Nilikuwa na interest ya 16% ambapo kila mwezi
nilikuwa nipate Shs.64,000/-. Nilipata mara mbili, ya tatu wakapotea. Tulijaribu
kutafuta huyo mtu ya kuhusika. Kesi iko mahakamani, haijaisha.
Report of the Taskforce on Pyramid Schemes
208
Ya pili ilikuwa Family In Need Organization. Hiyo ilikuwa Kenyatta Market na niliweka
Shs.120,000/- Hiyo sikupata chochote. Walikuwa wamesema, ukiweka kama
Shs.40,000/-; ukienda kuchukua after four weeks, unapata 40,000/- juu yake. Kwa hivyo,
hiyo nilikuwa nimeweka Shs.120,000/-.
Hon. Francis Nyenze: One twenty thousand?
Mr. Regiment Anyanjwa: Yes, 120,000/-. Hii ilikuwa Family In Need Organizaiton.
Kuna ingine, ambapo iko View Park Towers. Hiyo niliweka Shs.50,000/-.
Hon. Francis Nyenze: Ilikuwa inaitwa?
Mr. Regiment Anyanjwa: Niliweka Shs.50,000/-.
Amb. John Mukuriah: Na kartasi umepeana?
Mr. Regiment Anyanjwa: Yes, kartasi nimepeana. Na hiyo ikawa hiyo mwezi nipate,
waliniandikia cheque ya Shs.8,500/- na hizo cheques mpaka saa hizi ningali nazo;
sikupata chochote. Na ninasikia ni ya somebody anaitwa Asembo – Asembo lawyer and
advocate. Hiyo yote, huyu Asembo tulikuwa tu-sign na yeye agreement. Ile ilikuwa ya
Circuit, kuna Mugambi lawyer and Advocates. Huyo ndiyo alikuwa ana-sign agreement.
Nimefika hapo.
Hon. Francis Nyenze: Thank you, Anyanjwa for your contribution and for that
information. We want to have copies of those documents including the cheques and the
documents you gave there. We want to hear from another member, yes, we can hear
from you.
Pst. Noel Kitete: Majina yangu naitwa Pastor Noel Kitete. I come from Lamu – Lamu
is in Coast. I retired early from the government and I got some money and somebody
told me there is a project known as Clip. Clip is a Christian organization then so-called.
I put in Shs.300,000/-. I was paid for three months, then it closed down. Then there is
Family in Need Organization. The director was a person known to me for many days, so
I trusted him. I put in Shs.80,000/-
Amb. John Mukuriah: How much?
Pst. Noel Kitete: Shs.80,000/-.
Amb. John Mukuriah: What is the name of this director?
Report of the Taskforce on Pyramid Schemes
209
Pst. Noel Kitete: Leonard Wanyoike. Then there is DECI. I put in Shs.57,000/-.
Amb. John Mukuriah: Did you get anything from Family in Need?
Pst. Noel Kitete: I got nothing.
Amb. John Mukuriah: And Clip, also?
Pst. Noel Kitete: Clip I got for three months. It was 10% of the principal amount.
Amb. John Mukuriah: So you got the interest?
Pst. Noel Kitete: I got three months.
Amb. John Mukuriah: DECI?
Pst. Noel Kitete: The amount of money that I invested, I have not got anything so far.
When I tried to follow up, I came to Nairobi. There is Re-insurance Plaza, there is a
Ministry of Co-operatives. So, I went, they told me they can help me recover my money.
I paid again 6,700/- to them.
Amb. John Mukuriah: That is now?
Mr. Noel Kitete: Yes, they told me they will surmon the big people. This is a couple.
So, they told me they would organize to come and attend a hearing. Both of them were
not there. Now the (?) people told me, no, we can help you. Again, my
Shs.6,799/- went away with the Ministry of Co-operative Development. I do not know
whether the Ministry can also pay back this money because they did not help me in any
way.
Amb. John Mukuriah: First, let us get that story. So, 6,700/- you paid to the Co-
operative.
Pst. Noel Kitete: The other people.
Amb. John Mukuriah: So, what happened when you went there?
Pst. Noel Kitete: They told me they were going to surmon the directors of Clip to come
for a hearing – I was supposed to attend a hearing there. So they gave me a date. When I
Report of the Taskforce on Pyramid Schemes
210
came, they told me they did not have those people because they are nowhere to be found.
So, it was just like that.
Amb. John Mukuriah: So, you were not refunded your money?
Pst. Noel Kitete: My money is still with the Ministry of Co-operative Development.
Amb. John Mukuriah: We have taken note of that.
Hon. Francis Nyenze: Thank you very much, Pastor Noel and we are very sorry for
that but, we will follow because we are gathering information so that we follow your
money. It was very elaborate. Now, because members are increasing with time, we want
to reduce the minutes that one spends. You just present, give to another person. Now,
we will give to that gracious lady. Two and a half minutes, come. Sorry, I had not seen
this gentleman.
Mr. Albert Weda: Good afternoon, all of you.
Members: Afternoon to you.
Mr. Albert Weda: I am called Albert Otieno Weda. I want to give this information
about an organization called Clout. This Clout--
Amb. John Mukuriah: Clout Investment Ltd, or what; what is the full name?
Mr. Albert Weda: The name stands for Center for Livelihood Opportunity Unlimited
and Technology.
Amb. John Mukuriah: Asante.
Mr. Albert Weda: They were operating at Chaka Road, off Argwings Kodhek Road in
a house called Ibrahim Barber Shop. It is now a Restaurant. These people came as
sponsors for our children. You could register even 10 children, if you have. Here I lost
about Shs.50,000/- because I had my children and two orphans. So, I registered eight
children. They were asking for Shs.4,000/- per child for registration. If you register a
child, they would take over and continue educating the child. So, you could register a
child even in primary, secondary or university. So, I registered eight children in all.
These people swindled our money, because after registering the children, they told us to
wait for a moment as they were still organizing how to make it work. After registration,
Report of the Taskforce on Pyramid Schemes
211
it took six months. This was done on 26th September, 2007. Up to now, we are still
waiting for them. They are nowhere, but we know them; I know one of the directors.
Hon. Francis Nyenze: Tell us the name of the director.
Mr. Albert Weda: Her name is called Mrs. Masinde.
Hon. Francis Nyenze: You know her contact where you can get her?
Mr. Albert Weda: Yea, I know where she can be found. Another one is called Juma.
Hon. Francis Nyenze: Mr. Juma?
Mr. Albert Weda: This one disappeared either out of the country. Mrs. Masinde can
be found in Nairobi West. She is there operating a Computer College.
Hon. Francis Nyenze: Do you know the name of the Computer College?
Mr. Albert Weda: (inaudible)
Hon. Francis Nyenze: Thank you, Mr. Otieno. You have been--- ama hujamaliza?
Mr. Albert Weda: Sijamaliza.
Hon. Francis Nyenze: Maliza, kwa sababu watu ni wengi.
Mr. Albert Weda: Another person who was also part of them is Pastor Odalo and his
telephone number is 0722281902.
Hon. Francis Nyenze: Thank you, Mr. Otieno. You have been very clear, and we will
follow that up. Now, give the mic to that gracious lady.
Ms. Anna Waweru: Thank you, you honor. I am Anna Waweru. I am standing here to
say I invested with DECI, together with my husband, Benson Waweru. It was an
investment of Shs.96,000/- which was supposed to be paid after a month but it never
matured. But, my husband was investing so that he could pay school fees for our
children who are in a private school and he took a loan. It never matured. He went to ask
them if they could help him and he only got Shs.20,000/-. He never got anything up to
now.
Report of the Taskforce on Pyramid Schemes
212
Before that I invested with Kenya Business, which was at Viewpark Towers. I gave
Shs.100,000/- at an interest of 16% after one month. I got once and I never got. When
problems started, we kept on going but we were told the government is holding their
money, they cannot pay interest, they could not pay anything until finally, we could not
be paid.
Hon. Francis Nyenze: Anna, in Kenya Business you invested how much?
Ms. Anna Waweru: Shs.100,000/-. And we were paying law fees of Shs.5,000/-.
Now, my plea and my kind request to you, honorable gentlemen and ladies, my plea and
my prayer and request is that you are going to fight for us, because this has gone for two
years now. We invested, not because we had a lot of money, but we took loans so that
we could invest so that we could help ourselves further, especially educating our
children. I personally think, I do not know about them, I was not looking for the big
riches, but I wanted to see that my children are educated; and that is why we were
investing. I tried businesses here and there and I could not be able to do much because
you go in a new place and you are asked for goodwill of 400,000 and it is a very small
room and pay Shs.19,000. I wondered, how do I get all this. I was interested in cooking
and hotel, whatever; you go somewhere, you get a room and are asked for a goodwill of 1
million. I was seeing this is unfortunate, I cannot get.
When these pyramids, when they were coming up and they were saying it is to empower
us and to eradicate poverty, we were thinking this is a genuine course for us to run to.
So, we went, and it looked genuine, but I do not know why our government registered
them to come and rip up the little investment that we had; to rip us up of what we are
really working so hard to look for. Because I go to a bank to ask for a loan and I was
investing there because I knew at least the percentage is much more than that. Even the
bank loans, you end up dying or retiring without seeing interest on your bank loan.
So, I am pleading with you honorable gentleman and ladies, kindly fight for us. Because
there is also Jitegemea – one of them is in your (?) here. How are you
helping us; please I kindly request you, help us. Tusaidieni, tafadhali. Tumeteseka, kuna
shida. Hatukupea hii pesa kwa sababu tuko na pesa nyingi, ama ni utajiri wa haraka
tulikuwa tunataka. Ni kusaidia na masomo ya watoto.
Hon. Francis Nyenze: Okay, thank you very much, Anna. You know, ladies and
gentlemen, each one has a very moving story because this money was taken from
desperate people; people who did not want to get rich, but they wanted to educate their
children and it came through church – sisters and brothers – people you trusted. So, we
do appreciate and I would say, because this Task Force has come here to take those
Report of the Taskforce on Pyramid Schemes
213
views, to listen to the people; this is a public hearing. Those are the things we wanted to
hear so that we record them and now we try the best we can to follow this money so that
it is paid back to these people. So, your presentations so far are very good and Anna,
sorry for that. Now, we want to call the next person but we want it to be as short as
possible because we know the pain is there and the waiting has been very painful because
you lost everything. Someone retired, they put their money. Someone borrowed, they
put their money; someone sold their land. We can see the pain. Please members, let us
not explain the pain part of it. Let us bring the facts so that we help the Task Force to
move ahead. But, it is also good when you talk like that because you also release your
grief. We share the pain. So, now we want to call the next person. So, Anna, I hope you
have given your documents there. Thank you. So, we call this gentleman in front here.
If I heard her right, did she say that one of the people who were running the groups is
here in the Task Force? Now, we wanted to know from Anna, because she said one of
the persons who were the promoters – those people who wronged every Kenyan is here,
where?
Ms. Anna Waweru: Yes, here.
Hon. Francis Nyenze: Okay, I will send someone to sort that one out – the Vice
Chairman. Not someone (?) we will check on that, but we will proceed with our
presentation. That lady at the back, oh, you have already come?
Ms. Esther Kiarie: Habari zenu zote.
Hon. Francis Nyenze: Mzuri.
Ms. Esther Kiarie: Mimi majina yangu naitwa Esther Kiarie and I love the Lord.
Hon. Francis Nyenze: Can you repeat it so that we record?
Ms. Esther Kiarie: My name is Esther Kiarie. Mimi nilikuwa nataka kusema ya
kwamba niliweka pesa yangu na Amiti Investment in Westlands, Soin House. Niliweka
Shs.400,000/- and I was with my son the same day, akaweka 100,000/-.
Hon. Francis Nyenze: Excuse me, let us pay attention here and switch off your mobile
phones because there is a Presenter here.
Report of the Taskforce on Pyramid Schemes
214
Ms. Esther Kiarie: Mimi mwenyewe nikaweka Shs.400,000/- halafu nikaenda na kijana
yangu, akaweka Shs.100,000/-. We went with a very big group of about 10 ladies and
some of them are here, some are not here but we have all the details.
Then tukaambiwa after three weeks tutapata hiyo pesa. Shs.100,000/- ilikuwa irudishe
Shs.300,000/-. Tukangojea the time tuliambiwa. Wakati ilibakia one week, tukaanza
kutupuliwa message, mimi nikapata message, nikaambiwa, there is a small problem with
the bank, kwa hivyo, be patient. After that, within one week ikafungwa. Kuenda pale
sasa, imefungwa.
Hon: Francis Nyenze: Esther, how much was lost between you and your son?
Ms. Esther Kiarie: Shs.500,000/-.
Hon. Francis Nyenze: 500,000/- shillings?
Ms. Esther Kiarie: And then I had invested with another company which was calling
itself Keet Investment.
Hon. Francis Nyenze: Before we move to that one, on this one, Amit, do you know any
of the directors?
Ms. Esther Kiarie: I did not know them personally but nilikuwa nasikia moja anaitwa
Mureithi – somebody called Charles Mureithi Kirigwa. Because we went even to the
advocate na alikuwa alisema yeye hamsimamii (?) ya hiyo pesa, alimsimamia
akinunulia girlfriend yake nyumba wakati huo. And then akatuambia sasa--
akatusukuma kwa wakili mwingine tukatumwa, tukaenda. Huyo wakili akatutuma kwa
brother wa Charles Mureithi, Industrial Area. Some of us wakaenda, wengine
hatukuenda. Tumekimbia sana, sana mpaka tukachoka.
I heard another company ambaye inaitwa-- hiyo ya Amiti, we went to Parklands Police
Station where somebody, a Mr. Magwa was handling the issue. He had promised us that
they were not responding, but after sometime akatuambia they are responding now. After
some time, akageuka akawa he is not the person we were talking to before. So, we were
confused. And the wife of Mureithi was taken from Uganda by other ladies, where she
had hidden. She was in Parklands Police Station. They wemt there; kufika hapo
wanatuambia, endeni muongee na huyo mama. We went there, talked to her. She told us
how she has problems, how she was left. Aliwachiliwa na bwana yake alipofunga hiyo
kazi and then-- problems tu alikuwa anatuambia. Alikuwa amemfungia pale for
security; kwa sababu inside there she was secured more than akiwa nje. So, we had no
Report of the Taskforce on Pyramid Schemes
215
help. Even there was another lady who was taking the money with us at Soin house –
somebody services. People had (?) tukamtafuta, nini, mambo
mingi hatujafaulu.
There was another company known Keet Investment--
Hon. Francis Nyenze: Called Fit?
Ms. Esther Kiarie: K-E-E-T Investment. That one was in (?) around
Soya Mosque. Hapo tuli-invest 190,000/-. Tulikuwa tumeambiwa hiyo tutapewa after
three weeks.
Hon. Francis Nyenze: Ukisema ‘tuli-invest’, ni wewe na nani?
Ms. Esther Kiarie: Mimi mwenyewe – tulikuwa wengi lakini mimi niliweka
Shs.190,000. Kukaribia ile siku walikuwa wamesema watatulipa, wakafunga.
Hon. Francis Nyenze: The Contract was, hii 190,000/- ukilipa utapata interest kwa
mwezi ama itakuwa multiplied?
Ms. Esther Kiarie: Itakuwa multiplied.
Hon. Francis Nyenze: Within how many months?
Ms. Esther Kiarie: One to three weeks.
Hon. Francis Nyenze: Three weeks?
Ms. Esther Kiarie: Hiyo ilikuwa inaitwa ni haraka, hiyo.
Hon. Francis Nyenze: Okay.
Ms. Esther Kiarie: Tukakuta wamefunga, tukakimbizana nao. One of the directors was
called Mr. Wachira, there was another one Florence; alikuwa anasimama tu siku ya
kamkunji.
Hon. Francis Nyenze: Florence?
Ms. Esther Kiarie: Yes. Tukasumbukana na hao mpaka tukaenda kwa Police Station,
Central; tukaona police mmoja huko mkubwa; sikumbuki jina yake. Akatuitia Wachira.
Report of the Taskforce on Pyramid Schemes
216
Wachira akakuja hapo, akatuahidi, akatulipa na akapatiana time. Afterwards,
hakutulipa vile alisema. When we went back to that policeman – he is a big man, I do
not remember his name – akageuka sasa akawa mwingine. Akatuambia, kama hajalipa –
I was just wondering what we talked before, akageuka. So, tukakimbisana na hawa,
lakini tukashindwa.
Sasa, nilikuwa nimeweka na mwingine inaitwa Golden Life Concept. It was in Utalii
House. I invested Shs.5,000/- and the director was a lady who had a shop, hapo ground
floor ya Utalii house.
Hon. Francis Nyenze: A boutique.
Ms. Esther Kiarie: At that time we could talk to her by phone lakini ikaja tena ikawa
hakuna communication. At the same house I had invested with Christian Family – it was
an Non-Governmental Organization (NGO). I invested Shs.10,000/-. Kabla walipe tena,
ikafungwa; halafu wakafungwa tena. Halafu wakatuambia watalipa. Then, they closed
down. Sasa tukakaa hivyo. Tumejaribu all the ways we could – whatever we could but
we did not succeed in any way. Wanajificha, wanatoroka. Hata zaidi ya hiyo
tumekuliwa pesa nyingi, kwa sababu, unakuta mtu anakuambia atakusaidia halafu at the
end of the day unaona hakuna usaidizi. So, we forgot about it but I think God has
revived it once again because tulikuwa tumesahau, tumejaribu all ways, tumeshindwa.
Lakini, mimi ningewaomba utusaidie if you can. Because I know there is nothing
impossible with God. And I know the hand of God is not short (inaudible as
the speaker gets emotional) because I know God will be on our side.
Hon. Francis Nyenze: Thank you, Esther Kiarie. I think that was very moving; you
cannot say much about that but we have gotten the facts. Let us hear from the gentleman.
Mr. Chris Makokha: Habari zenu.
Members: Mzuri.
Mr. Chris Makokha: My names are Chris Makokha. I have come to testify that I
invested in some co-operative; I cannot say it was a pyramid scheme because I was told it
was a co-operative society and when I went to invest, I was not going to invest as a
pyramid but I went to invest as a co-operative society. I invested in Clip because I was
told by my friend. He told us that those people who start these pyramid schemes are
pastors and fathers in the church. I think I agree with you because I never saw the (?)
in that. What I am saying is, when I was going to invest in Clip, I was told it was a co-
operative society. I invested 160,000/- where I was told that I would get a refund of 10%
Report of the Taskforce on Pyramid Schemes
217
per month. I invested for six months. The first time I invested, I did not get anything. I
was told the government has frozen the account – the government of Kenya had frozen
the account and that is why we were not paid. That is the information we got from Mr.
Peter Ndathi; that is the message we got.
When I was investing in Clip, even now if you go to their offices, you will find they have
written there Clip Co-operative Society. I understand in our country, we have a co-
operative Act where when a Co-operative society is being registered, it is (?) by
of the government. I do not know how the government registered the co-operative
society and again comes to de-register and freeze the account. Now, I have come
because I am suffering. I invested free. I have been surviving with a salary of
Kshs.3,000/- per month because I took a loan. When I took a loan I expected, because I
will be receiving at least some money every month and after that may be, I would take
my money back because I was told that it was a co-operative society and it could assist
people who earn little money. It is not that we had – like the mama said – that we wanted
a quick rich like people say. No, ilichukua muda sana (inaudible)
I was considering I would be there for quite a long time. That is why I decided. I just
want to add, I do not know whether you are really coming to help us because really, as I
am standing here, I know so many people – my friends – I know a certain woman who is
now bed-ridden, she cannot walk, but she invested there Shs.300,000/-. So, I am asking
you, you represent the government; the government has appointed you. If you can assist
us, because we know people lost money. They lost a lot of money and most of them are
very poor. Like myself, I am very poor; I cannot even pay the rent. I have been going to
my friends for the money. I understand that the Deputy Commissioner of Co-
operataives is here who has been registering co-operative societies – let alone those
schemes – pyramids. I am talking about co-operative societies which were there. I do
not know – what can we do about it.
Hon. Francis Nyenze: Thank you Chris Makokha. What we should agree is that as the
days go by, more members will come and we want to listen to as many people as
possible. If I give this chance to just a few, it will not be representative. But if we talk
less, very few things; the investment, which company and what amount and you have
given us the details and then we listen to you and finish, we listen to everybody and then
we release you, you go and do other things. So, please, those we give chance, do not take
a lot of time, so that we listen to as many as possible. Before I give this chance to any of
you, I had sent my Vice Chairman to go and sort out that problem that Anna raised that
there is someone who was involved in a scheme and you saw him around. So, I wanted
the Vice Chair to clarify that and then we move to the next person.
Report of the Taskforce on Pyramid Schemes
218
Amb. John Mukuriah: Thank you Chairman. Just before I come to that issue, let us
make it absolutely clear that the Task Force as a Task Force is a government institution
but the 10 of us who are in the Task Force – the nine of us who are in the Task Force –
from there to the very end (showing by hand the Members’ table), we are not in
government, we could even be (?) So, you should really see
that as that. So, we are not in government but we are running a government Task Force.
That is an important clarification. What we are saying is that there will be no conflict of
interest. There is no question of there is a government position or no government
position. We are with you.
An issue has just been raised by Anna – one of the investor. I just went out and realized
that the person concerned is Raphael Machieka. Raphael Machieka is a Co-operative
Officer in the Ministry of Co-operatives and what has happened is that he was appointed
as a liquidator – we understand – for Jitegemee; and we understand that, that exercise is
still ongoing. When this Task Force was instituted, the Secretariat is different, of course,
from the Task Force. The only member of the Secretariat gazetted is Mr. Philip Gichuki,
who is sitting there. And then what happened in the Secretariat, Raphael Machieka
happens to be one of the supporting staff.
To resolve the issue so that we have no conflict of interest, we have withdrawn the
officer. We will subject him to investigation, he will come to us and present his case
before us and once we have had an opportunity to hear from him and we have had an
opportunity to hear from the other side – we need also information from the other side –
then we will be able to proceed. But, for now, we have withdrawn him as a support staff
to the Secretariat until we are able to sort out this matter. I believe that is the best we can
do at this moment in time. Thank you, Mr. Chairman.
Hon. Francis Nyenze: Now, I can give it to the gentleman.
Mr. Kinyua: Thank you, ladies and gentlemen. I am here to represent at least one of the
basic human rights in mitigation is right to be represented. I am here to represent a group
called National Pyramid Schemes Initiative. I believe we have members who are sitting
here and in particular I have in mind that woman who is in the ghettos, who does not
understand the issues of Task Forces and Public hearings, who is very, very frustrated.
The other person I am representing is a very respectable person who cannot find himself
standing in front of us narrating how he was oppressed. So, basically I am representing
those people and I happen also to have been a victim by extension and by virtue of
having invested myself.
Report of the Taskforce on Pyramid Schemes
219
I used to say this, I have had a problem with the Task Force as it sits here and not the
persons – let me clarify that – not the persons who are sitting in front of you. I want to
clarify that point very clearly; it is not these people. I do not know any of them and I
cannot say that this person did this or that and the other. I have a problem with the
appointing authority and the appointing authority is the Ministry of Co-operative
Development and the issue I have with the Ministry of Co-operative Development, I beg
to divert from what you are presenting, the personalities who conned you money. I have
a problem with the licencing authority – the authority that licenced those people who
went with your money. Okay, that is the problem I have. I do not have – and I have told
people several times. We can sit down with somebody called Peter Alfred Dakwe. By
ssaying Peter Alfred Dakwe I mean the registered chairman of Clip Co-operative Society.
We can sit down and eat together but I cannot ask him a single question, because I know
he will produce a certificate of registration and he will tell me I was licenced to con you.
So, what problem do you have with me, go to that person who licenced me to con you.
And he was licenced by the Ministry of Co-operative Development. That goes with so
many other pyramid schemes that we involved ourselves in indirectly.
I also have a problem with the Law Society of Kenya, because in every instance, there
was a lawyer who was stamping and I hope you will note that. In every instance, there
was a member of the Law Society of Kenya who was witnessing the Agreement. So,
assuring an ordinary person like this one, that all what he is doing is well. A lawyer is
supposed to advise a client that if you find that, that Sacco or Society is licenced, you can
go a head and invest in that Sacco, is it not so? I have a problem with – specifically here
– I have a problem with the Commissioner of Co-operatives who was then registering
these co-operatives and then de-registering them after they have frozen people’s money.
That is what he used to do; I have a document, I have a letter somewhere that one
pyramid scheme which did not manage to register as a Sacco that time, in a meeting in
Landmark hotel, he was expected to attend that meeting in Landmark hotel, Westlands
and the foolish person who was taking down minutes, actually took that minute; that the
Chairman confided with us that the Commissioner of Co-operative, and he named him,
was supposed to attend that meeting so that he can assist them from moving from what
they are doing to a co-operative Sacco. All these people know that the message and the
problem and the mess we are in were created by the Ministry of Co-operative
Development. And I received a letter from the Ministry of Co-operative Development
telling me to present this document on that day. I will still come. Hallo!
So, what I am saying, we the investors; and I am talking to thousand and thousand and
thousand who cannot come here – who cannot get time to come here – we have no
confidence in the appointing authority – the Ministry of Co-operative Development
because it is the same ministry which created the mess. How can it be expected to save
Report of the Taskforce on Pyramid Schemes
220
this mess? We have said that several times. We thought that we had sat down and
agreed on some technical issues that we can try to accommodate and we have not. Let
me repeat this, and I am talking this so that our members can hear: we do not have a
problem with the personality of these people. Are we together? These people can act,
and continue acting if the appointing authority was not the Ministry of Co-operative
Development. So, I am not flattering you, I am saying what the feelings of many people
are; if these people were acting as another appointing authority who has a problem with
Mr. Francis Nyenze? Who has any problem with them?
Participants: Nobody.
Mr. Kinyua: Nobody. But the appointing authority – the Ministry of Co-operative
Development will never, ever, solve this problem. It will never. One of the biggest
investment schemes had one son of the Commissioner of Co-operatives working there.
That one we know. (Claps). The son of the Commissioner of Co-operative
Development was working for one of the biggest scheme. How can anybody trust the
appointing authority. The same Commissioner, how can anybody trust the same
Commissioner? Nobody. So, what we are saying is this, before we are branded as tryng
to frustrate the Task Force, our only problem is the appointing authority. If the
government is listening to us, the many people I am representing will not have any
confidence in this Task Force as long as it originates from the Ministry of Co-operative
Development.
I want somebody to explain to me; it is good that we have solved the issue of Mr. Ma--
one minute, one minute only.
Hon. Francis Nyenze: You finish within a minute because this is a Task Force forum.
We have given you enough time, conclude so that we go on.
Mr. Kinyua: Fine. There are two things; we can trust this Task Force as it is constituted
by the Ministry of Co-operative Development which assisted in the freezing of your
money or you can trust a positive initiative which will never rest until it gets to the
bottom of this thing.
Hon. Francis Nyenze: Thank you, Mr. Kinyua for your contribution. We have listened.
One thing we did when the Task Force was formed, we did invite Mr. Kinyua, Bishop
Ndegwa, Pastor Kariuki; all the people who were running private initiative to follow your
money because we knew they had information, they had been there before us and we
wanted to share information because we want to do a good job. We called Mr. Kinyua
here, we invited him, we shared information. He came, we had all the time, he gave us
Report of the Taskforce on Pyramid Schemes
221
all the information and as a gentleman’s meeting, we do not want to say much but we
agreed on some principles that we work so that members get back their money. Do not
be compromised but make sure that the poor ones get back their money. We agreed with
Mr. Mbugua. So, it would be vague to come and dramatize it as if we are trying to go
against what the initiative has been doing. We want, and that is why we called him,
because he has been in it and we constantly engaged him. Whenever he tells us this is
wrong here, we follow it. Even the other initiatives from Mt. Kenya, from Kakamega,
from Kisumu, we listen to them because we want all the information.
The whole of yesterday, we subjected the officers of the Ministry of Co-operatives,
because we are investigating everybody. We have the whole-- since morning until
eventing, we called them who were involved and we wrote our report. Our report will
not spare anybody because us we are retired people. Even if it was a minister who was
involved, even if it is a Permanent Secretary, even if he is a what, we will write the truth.
First, we are Men of God, we fear God first and these are poor people who ar e conned.
We do not want anything from anybody, but also we want the members of public to make
our work easier so that we do not appear as if we have some conflict of inerest; we are
fighting for the same thing so that we get your money.
Mr. Kinyua: Mr. Chairman, (inaudible - speaker off mic)
Hon. Francis Nyenze: Okay, thank you, Mr. Kinyua.
Mr. Kinyua: (inaudible - continues to speak off mic)
(Mr. Kinyua finally walks out of the hall in protest against the Members of the Task
Force)
Hon. Francis Nyenze: Let me tell you what we agreed as you follow Mr. Kinyua; Mr.
Kinyua had requested to be put in the Task Force--
(Mr. Kinyua continues to speak as he walks out)
Hon. Francis Nyenze: Let me tell you as you go - those who want to go with Kinyua –
so that you know why Kinyua is bitter. We said we investigate from the Ministers, to the
Permanent Secretaries, to the bank, whoever took money, because this money belongs to
poor people. And the other thing – and I do not want something that Kinyua, because we
have also told Mr. Kinyua, in case your group has also collected money from people, we
will also turn to them and investigate, how much did you collect and how much did you--
you account for it; because we do not want anybody to take money from people and you
cannot account. So, he also requested us – and he is a friend of ours – “I want to be
Report of the Taskforce on Pyramid Schemes
222
included in the Task Force” . We asked the Minister. We are not the appointing
authority. We have said, because Kinyua was there before us, can he be included in the
Task Force? So, it is under consideration because the Minister was away but we do not
have the mandate to put him in, but we want him to be in because he is following your
money. Is that not good?
Participants: Yes.
Hon. Francis Nyenze: So, what I want Members, I do not want you to be-- because
you have lost money, do not lose money twice. This Task Force is free, you will not be
asked to pay anything; you only bring your documents but we have said, there are other
pyramid schemes going on. Someone is coming to ask you for Shs.2,000/-, 1,000/- to
follow that, but we have said, nobody should be asked for money and one thing that is
scaring the private initiative is because we have told them, in case you have taken
people’s money, you also organize your books; how much you have taken, how you have
used it, because you do not want to create other pyramid schemes. Kenyans have
suffered enough. So, this is what we want to stop (people clap). Do not be cheated so
that you start following people because they may want to cover up for the activities they
have been doing. We have assured Mr. Kinyua, when the Minister comes, we will
request for his slot, even the other Bishop so that they continue -- Even if they are not in
the Task Force because it is already conttitued, they be in the Secretariat so that they
provide us with the information. If there is delay, do not blame us. Let us move to the
next contributor.
(There is a lady speaking off mic)
Hon. Francis Nyenze: Let me tell you, most of us are Christians and we carry the
Bible. And Pastors who cheated you carry the Bibles, but this time, we are independent
people, we are not garbage. Let us hear from that gentleman. Most welcome.
(Commotion in the hall)
Amb. John Mukuriah: Let us have one meeting. I am the Chair, so please take your
seat. Keti tu kidogo. Let us have one meeting. Let us agree as Chairman as suggested
that we are really here to sort out what we consider to be a common problem and let us
also admit one thing that you have been hurt. I said that those of us who are seated on
this side, we probably have not told our story. If we are to stand that side, could be, we
share the same story. So, please without much a-do, I think it is nice to proceed but I will
give one of my colleague to say one word then we shall proceed with the business.
Report of the Taskforce on Pyramid Schemes
223
?Mr. Joseph Kibowot: Thank you very much, Chairman. Fellow Kenyans, I just want
to emphasize what Chairman has said. I share your frustrations as Kenyans, I share your
sufferings because among us are family members, friends, colleagues who have lost
millions and millions of money. So, both emotions are really shared among us. As the
Chairman has pointed out, we are independent citizen who are not in government pay-
roll. I do not know how they picked but in one way, where the (?) lies,
members of the Task Force.
I know that with the frustrations left and right in Kenya, we are almost losing hope of
everything. But, let me tell you one thing, this fight against corruption, against this mess
has to start somewhere. It has to start with, at least one person or a group of people.
Then from there we will procede as Kenyans. What we have resolved as members of this
Task Force is to get facts, facts from the people. Once you get the facts and the
information from the people, we will make our recommendations and we will ensure
everything in black and white. From there you will know where it has stopped and you
can begin your fight from there.
So, trust us Kenyans amd give us time. Give us the support, give us the facts; if there is
somebody without, bring us the facts, like what you have said this morning and we shall
act, we will act. Tukishindwa, tutainwa mikono na kusema, Wakenya, tumefikisha hapa
na tumeshindwa. Lakini, tunaamini Mungu atatusaidia; maana hatuwenya kukubali
unyanyazaji ya wananchi ambao wanataka kusimudu kwa maisha ambaye inazidi kuwa
kazi kila siku. Trust us. People who have information, people who have facts, stay with
us all the way until we are through in three months. Thank you.
Amb. John Mukuriah: Now, I think if you all agree, we will give the mic now to the
Chair. This is your meeting, we do not want it to be our meeting. We want to hear from
you. Do we agree that we proceed?
All: Yes.
Dr. Machanja Ligabo: Bwana Chairman, na wale ambao wamekuja, mimi nina jambo
moja tu. Vile mmeambiwa, sisi ni wazee; hawa watu wote wako retired. We are retired,
na mambo ya hii scheme yamekula – if you are talking of 38 to 60 billion shillings.
Imekula watu wote, imeibia kila mtu, na wakati hii Task Force imetengenezwa,
haikutengenezwa to support or help anybody apart from the investor – wale watu
wameweka pesa. Mama moja amesema hapa alitoa kidogo ya kusaidia na amepoteza
pesa zake. So, what we are saying is this, we are not a part of the Ministry of Co-
operatives. Hata Ministry of Co-operatives sisi tunaichunguza. We are an independent
body ambaye inataka kusaidia nyinyi. Kwa kumaliza nasema namna hii; huyu mzee
Report of the Taskforce on Pyramid Schemes
224
wanamuita Kinyua tulikutania na yeye wakati Minister aliita sisi na Kinyua akatuandikia
two days ago akisema anataka kuja kuzungumza. We gave him a letter making an
appointment for him to speak on Wednesday at 12 o’clock – no, Thursday ya wiki hii.
Na sisi kazi yetu si kuangalia schemes – pyramids za upande moja. Katika schemes, tuko
na zile za Co-operatives, tuko na zingine private, tuko na zingine za wakina Kinyua. Kwa
sababu kama Kinyua anachukua pesa kutoka kwenu, alichukua kwa njia gani? Kusema
anaenda ku-investigate; ata-investigate namna gani mambo ambayo hupati msaada
ambayo anatafuta serikali isaidie pesa ipatikane. So, kumaliza mambo yangu, sisi tuko
na nyinyi. Na kama iko information, iko jambo ambalo uko nayo na information, letea
sisi. Sisi watoto wetu wamepoteza pesa.
Hon. Francis Nyenze: Thank you Dr. Ligabo. We will hear from this gentleman and
let us be very brief.
Mr. Jonathan Maluti: Thank you very much. Task Force Commissioners, my
colleagues, ladies and gentlemen, good afternoon. My names are Jonathan Maluti from
Kitui Central. I have come with other three members. We invested with DECI and the
four of us were sent by the other members to bring their receipts – photocopy – so that we
can represent them. There are others who are very old who invested and they cannot get
the time or they cannot come all the way to Nairobi. That is why they have sent us.
In Kitui we invested more than 14 million shillings with DECI and we have members
who have not yet given their receipts to us since they did not have the information. When
we got the information, I with my colleagues had started meeting since we lost too much
money. We have been meeting for a long time since those people ran away with our
money. That Committee was chosen because we were meeting regularly. So, we are
thanking the government for appointing this Task Force Commissioners to follow this
money of ours. So, we are requesting the Commissioner if they give us the way forward.
As you see, we have some people who are far away and they have not got that
information. So, we need the information from you how we can get those people so as to
get the ability. Others sold their cow because the people who were telling us about this
were pastors and we respect the pastors. That is why we sold our cows to come and
invest so as to harvest money. We lost a lot of money. Thank you very much.
Hon. Francis Nyenze: Thank you John, and sorry for losing 14 million shillings. Have
you deposited the receits with the Secretariat? Now, we need to be that short. Now, the
lady in African attire – karibu.
Ms. Elizabeth Kang’ethe: My names are Elizabeth Nyambura Kang’ethe. Sasa, mimi
hizo pesa nilizipata kwa, I was retrenched from Telcom Kenya. Na sasa pesa zangu zote,
Report of the Taskforce on Pyramid Schemes
225
for 24 years I had worked. Mimi ni mtoto yatima. Kwetu sisi ni maskini. Niko na ndugu
yangu waliaga na mke wake, wakaniwachia watoto – watatu. Ni mimi nilikuwa
ninawasaidia. Sasa vile pesa wakati ule ilitokea, nikapewa pesa na sikuwa tayari
kuwacha kazi, maanake sasa mimi mwenyewe niko na mtoto moja. Ilibidi awache shule,
kwa sababu sina pesa ya kumlipia. Wale wengine nao, mayatima kama mimi, ingawa ni
wa ndugu yangu walikuwa wananitegemea, wanahangaika huku na kule. Wakipata mtu
kama wewe, unamwandika kazi, Shs.2,000/- na unamfanyisha kazi kama punda. Na huku
hana mama, hana baba. Nao yule angemtegemea kama mimi sasa – sijui kama
mmechukua majina yangu kamili. Mchukue majina yangu kamila kabisa, kwa sababu
habari ninatoa hapa, hata mbinguni imeandikwa. Sisemi hii kukutisha. Ninasema hivi
kwa moyo wangu. Na mtu akitokea wakati kama huu, kuna mtu ataulizwa swali juu
yangu, na sisemi (inaudible) ni pesa yangu na ni haki yangu,
sikuchukua loan, ndiyo. Lakini zile pesa zote nilifanya kwa 24 years,
Hon. Francis Nyenze: Do you know how much?
Ms. Elizabeth Kang’ethe: Yes, ninaenda hapo sasa. Sasa hivi, ile nyumba nilikuwa
ninaishi, ninaishi kuhangaisha sasa. Hata wewe ukiniangalia namna hii unaona mambo
sio mazuri. Isipokuwa ni Mungu tu ananidhika utukufu, wakati huu ningekuwa labda na
diabetic, name it! Zile mangonjwa zote zaweza kuletwa na mafikara. Kuna wakati
ilikuwa inafika, isipokuwa tu Mungu – mkono wake. Ninasema kupitia hiyo miaka mbili,
nimeteseka ile sijaona. Hata watu wa Rwanda, they are better than me, but I have Jesus,
I have God. Kwa sababu yule mtu, nina apa hapa, na apa kama kuna mtu wa serikali
hapa aende apeleke maneno, nimerudia majina langu, Elizabeth Nyambura Kang’ethe; I
fear no man, but I fear God. Ile pesa yangu yule yoyote alichukua akala, hizo pesa zangu
zitawaza kwa tumbo zako na watoto wako wote. Nasema hivyo bila kuogopa – mpaka the
fourth generation; sijui kama tutafika huko. Na hata kama ni nani ataenda kupelekewa
habari. Mimi ninaishi Thika Road. Mkitaka, hata nitawapea namba yangu ya simu; mtu
akitaka, anipigie – kwani ninaenda kujificha ulimwengu gani? Ile mahangaiko nimepata
nikatafuta fare to come here; nimekuja na (?) kutoka Thika Road. Pale
nilipata a Good Samaritan, anisaidie kuni (inaudible) Kwa
sababu pesa zangu zote, imagine, zote vile nilipewa, baada ya kukatwa loans zile
nilikuwa nazo, nimechukua hapa na pale, kusaidia watoto wa ndugu yangu na mimi
mwenyewe na mwanangu mmoja. Sasa ni mayatima zote, tunaangaliana hivi. Na nyinyi
ni mazaidi. Nyinyi ambao – kila mtu anajijua. Mimi sibembelezi mtu; nawambieni, si
mna deni; wewe mama, si una watoto? Baba, uko na watoto? Ebu nikwambie, yeyote
atakayo oppress an orphan, Mungu anasema ya kwamba hata nyinyi wanaume, (?)
watauwawa ili wamama na watoto wasikie vile hawa wanasikia, ama vile ninasikie sasa
hivi. Ninaumia sana.
Report of the Taskforce on Pyramid Schemes
226
Hon. Francis Nyenze: Sasa enda kwa pesa-- because of time.
Ms. Elizabeth Kang’ethe: Sasa pesa zangu nili-invest kwa Circuit – mwandike vizuri
sana mtu asikosee, asiongeze na asipunguze – Circuit Investment – Shs.200,000/- from
Telcom, vile nilikuwa retrenched nazo. Spe Investment – 100,000/-. Tuende kwa Smart
Investment – Shs.100,000/-. Tuende kwa DECI – Shs.20,000/-. Halafu tuende kwa
Global Investment – Shs.7,500/-. Tuende kwa Doeken Investment. Umeweka vizuri sana;
mkumbuke inandikwa mpaka huko, sio hapa pekee yake. Doeken ilikuwa Shs.20,000/-.
Msione kama nimerukwa na kichwa, I am myself.
Hon. Francis Nyenze: No, no. Sorry. Endelea.
Ms. Elizabeth Kang’ethe: Tuende kwa New Horizon, ilikuwa Shs.120,000/-. Hata
kuna moja nilimwekea hawa watato – moja, angalau tuinuane. Na kuna Amiti
Investment – Shs.100,000/-. Hizo zote ni ngapi, kama kuna mtu anaweza fanya hesabu
haraka, haraka.
Hon. Francis Nyenze: It is nearly Shs.600,000/-.
Ms. Elizabeth Kang’ethe: No, total ilikuwa around Shs.800,000/-. I have the--
Hon. Francis Nyenze: Vile ume-explain tumepata roughly around Shs.600,000/-.
Conclude ili tupatie mtu mwingine because we want to listen to as many people as
possible.
Ms. Elizabeth Kang’ethe: Sawasawa. Sasa ninataka kuliza, kwasababu tumbo ha
(inaudible) ningeomba, na ningeuliza, ninauliza; kwa sababu
mkichaguliwa, mlikuwa mnaenda kufanya kazi gani? Ama ninakosea?
Hon. Francis Nyenze: Uh, uh haukosei.
Ms. Elizabeth Kang’ethe: Sasa, mliambiwa tunaelekea wapi? Tunafanya hii
kuandikisha ama ni kuandikisha ama ni kuandikisha tu, just for the sake of that ili watu
wasikie vile tulipigwa na hizi pesa zote. Huyu ni wa Telcom, ninakujua, kwani. I know
you were there-- na mnahangaika kama mimi. Mimi ni mzee, si mimi ni mzee. Niki-
retrenchiwa hata kama sikuwa nimefika 60, naweza kuja mpaka uniandike kazi ya
(?) Ni kijana wangu utaandika au ni mimi.
Hon. Francis Nyenze: Kijana yako.
Report of the Taskforce on Pyramid Schemes
227
Ms. Elizabeth Kang’ethe: Si ni kijana wangu. Sasa kijana yangu na hakumaliza shule,
utamwandika bila kartasi?
Hon. Francis Nyenze: Sasa wacha nikujibu ili tusikie mwingine, but your contribution is
very good. Na kabla hujaketi, uko na documents za kuonyesha ulilipa hii Shs100,000
hapa, hii 200,000/- kwa Circuit?
Ms. Elizabeth Kang’ethe. Hata ya Lawyer mwenyewe ninayo.
Hon. Francis Nyenze: Umepatiana pale?
Ms. Elizabeth Kang’ethe: Niko nazo.
Hon. Francis Nyenze: Kabla hujatoka hapa, photocopy all of them na upatiane hapa
mahali zinapatiana, so that tufuate hii.
Ms. Elizabeth Kang’ethe: Am I paying?
Hon. Francis Nyenze: No, you are not paying anything.
Ms. Elizabeth Kang’ethe: Kwa sababu hata kufika hapa, hata kama kuna mtu mmoja
hapa anaweza kunihurumia, anipe fare. Kwa sababu hapa nimekuja--
Hon. Francis Nyenze: Sasa wewe keti. Hiyo, Elizabeth, tumesikia and we are very
sorry. Fare utapata, nitakupatia mwenyewe.
Ms. Elizabeth Kang’ethe: Can I give you my number?
Hon. Francis Nyenze: Namba utatupatie, 07--
Ms. Elizabeth Kang’ethe: Na muwandike nyote, tafadhali. Hata nyinyi.
Hon. Francis Nyenze: Wewe, Elizabeth, maliza.
Ms. Elizabeth Kang’ethe: 0722455972.
Hon. Francis Nyenze: Thank you. Patiana hiyo mic pale and we will try the best we
can to sort those people who stole your money. Tuendelee kuomba Mungu so that we do
a good job.
Report of the Taskforce on Pyramid Schemes
228
Ms. Elizabeth Kang’ethe: By the way, mimi nimeokoka, na ndiyo maana unaona
nimesimama hivi. Kama singekuwa nimeokoka, hakika kama sio Mungu kunisaidia,
ningekufa.
Hon. Francis Nyenze: Okay, give to the lady.
Ms. Joyce Michieka: Mimi nawashukuru sana Task Force kwa sababu tulikuwa
tumefikira tumepotea, tumepoteza. Kama mimi nilikuwa nimepoteza kwa--
Hon. Francis Nyenze: Jina.
Ms. Joyce Michieka: Mimi naitwa Joyce Michieka. Sasa, ninataka kuuliza swali langu
la kwanza. Tulikuwa tume-register kwa Mr. Kinyua, akatuambia tukikuja hapa we do not
need to register again. Do we have to register here or you have the particulars which we
registered with in his office?
Hon. Francis Nyenze: Sasa, registration hapa, unakuja unajiandikisha, you do not pay
anything. Uki-register hapa tunaendelea. Lakini ile kitu tunasema, ulisikia Kinyua
mwenyewe akisema, he does not trust the Ministry. Kwa hivyo, because we are a Task
Force that was appointed by the government and Kinyua does not trust that, we do not
have to deal with that. We will follow the money for Kenyans. Those who wish to
follow with Kinyua, that is a group that does not have the mandate of the government.
For us, we have the mandate from the government. So, even Kinyua has to come to us to
follow money for his members. So, because now you have brought the documents to us;
if you bring the documents to us, we are likely to get to the bottom of this and get your
money back. But, these other private initiatives, and let all the members know that,
where will private initiatives take you apart from, ‘tuchange kidogo tufuate tukaone
Minister’. Now, there is a Task Force; why would you want to get into another private
whatever where you pay? Here we are free.
Ms. Joyce Michieka: Thank you. So, in other words, I have to go and bring my
documents and register here.
Hon. Francis Nyenze: All documents you have to bring them here, do not take them
anywhere else – photocopies, including the copy of your Identification Card.
Ms. Joyce Michieka: Thank you. So, I am happy that at least, there is a Task Force that
is giving us hope. I took a KCB loan. I just put money in these pyramids without
knowing and my co-operative. Right now it is under receivership with all my savings. I
had bought a property in Kericho district. After the skirmishes, it burnt so I lost my
Report of the Taskforce on Pyramid Schemes
229
property, I lost my savings with the Sacco tena. Then I am still paying the KCB loan up
to this minute.
Amb. John Mukuriah: How much is the KCB loan?
Ms. Joyce Michieka: The KCB loan was Kshs.700,000/-.
Amb. John Mukuriah: And invested it all?
Ms. Joyce Michieka: All of it. I invested with Macs – Shs.140,000/-, Amiti –
Shs.300,000/-, Vino – 210,000/-, DECI – Shs.68,000/-. How much is there?
Hon. Francis Nyenze: That is Shs.678,000/-. Around Shs.700,000/-.
Ms. Joyce Michieka: Yes, that is right. Then my co-operative right now is under
receivership with all my savings, about Kshs.200,000/-. My husband is a retired man, I
am a teacher struggling with payments, feeding the family and what have you. After
these pyramids, I developed blood pressure because of the losses, so I am undergoing a
lot of stress. I thank God that I saw you carrying the Bible and I feel grateful that there is
light at the end of the tunnel and I pray that God assists you that you recover at least
something out of our losses. All these people who are here, each has a different story and
all of them, believe you me, the stories are painful. So, may God use you to bring
something to us – at least to put a smile on our faces. Thank you very much.
Hon. Francis Nyenze: These stories are very painful, but you know what, we have
interacted with many of you since we were appointed and people are saying, even if I do
not get my Shs.700,000/-, can I get something even if it is half – watoto wasome. Ama
namna gani? So that is why we are saying, hata tukiwa na frozen accounts, because we
understand Central Bank instructed banks to freeze the accounts; tutafute hii pesa iko
wapi? Tumesikia watu wengi wanataka kulipa; they do not want to be prosecuted, but
given a good environment, they want to return the money. If they return the money, we
do not have problems with them, ama namna gani? So, we will give them a chance to
return the money and tell Kenyans, sorry. Because ukisukuma mtu mpaka apate high
blood pressure, that is very bad. Let us hear that gentleman at the back, then we will
come to you later.
Mr. John Kamuyu: Habari zenu. Mimi naitwa John Kamuyu. I work with the NCC –
City Hall hapa, na nilisikia story ya Circuit then I took some loan – 220,000/-. Then,
after one month, I started receiving some Shs.30,000/-.
Report of the Taskforce on Pyramid Schemes
230
Hon. Francis Nyenze: Thirty thousand a month?
Mr. John Kamuyu: Yes. Then after two months, I deposited again. It amounted to
Shs.260,000/- but I thank God today because I went and enrolled myself in a college
nikapata – niligongwa na (?) kidogo as a (?) That is how my family has
kept on going. Because niliwachiwa kitu kidogo sana after loan repayment. Lakini
nikaweka some kukus. My wife is not struggling much – I thank God for that, but we are
still paying. I am still pay that money because-- I pay around Shs.8,000/- a month and
that is actually hurting. Thank you very much.
Hon. Francis Nyenze: Thank you John Kamuyu and if people can be that brief, we
would be very happy. Kamuyu you lost Shs.260,000/-. We will take this lady and come
back to you.
Ms. Barlene Abonyo: I am going to be very brief. My names are Barlene Adhiambo
Abonyo. I invested in four schemes; Sasanet where I put Shs.1.7 million. I went to Ser
Investment where I put Shs.1 million. (?) I took Shs.100,000/-, and then---
when I talk about this I feel like crying.
Hon. Francis Nyenze: No, no, do not cry.
Ms. Barlene Abonyo: Because I started my business quite simple, (?) you are a
witness (inaudible as the Speaker gets emotional)
You are seeing me here (inaudible) but I started with
vegetables. Nilikuwa ninakata (inaudible)
Hon. Francis Nyenze: Take courage.
Ms. Barlene Abonyo: You know why I am crying-- (inaudible)
Hon. Francis Nyenze: Let her cry so that it gets out.
Ms. Barlene Abonyo: So, I invested Shs.1 million with Ser Investment. Nilikuwa nime
(?) a lot of money (inaudible) Nikawauliza, do you think this is a good thing.
Nikaenda nikachukua 900,000/- from National Bank. Nikaenda Circuit nikaenda Circuit
nikaweka Shs.800,000/-. Nikaenda Fino nikaweka 80,000/-. Do you know why I am
crying because of the struggle I have struggled.
Amb. John Mukuriah: We can understand.
Report of the Taskforce on Pyramid Schemes
231
Ms. Barlene Abonyo: And then Shs.1.2 million nikaweka Sasanet. No, niliweka Shs.1.7
in Sasanet. I do not know which one is this niliweka one-- Jitegemee. Monteblanc
niliweka 1.2 million. In fact, hiyo Shs.1.2, it is my husband I convinced. I mentioned
this lady so much because whenever I wanted to talk to my husband, I would refer to
Benta – ‘even Benta is there’. Nikaenda nikachukua, my husband went for a loan,
Standard Bank, Avenue – Shs.1.2 million. Tunalipa mpaka saa hii Shs.45,000/- every
month from my husband’s salary. So, if you add that up, it comes to about 4 million. As
small as I was; you know the pain is, the way I struggle with life. I went to Aboretum,
nilienda nikaangalia watoto wangu, I have three kids. Nikafikiria kufunga watoto in their
bedroom than I go and die because I was not able to tell even my husband that these
things have gone down. Nikafikiria, nikaenda Aboretum, I switched off my phones and I
carried poison. Nikasema, I want to go and kill myself, my husband will look for me and
will not find me (inaudible) I would look at
my kids and move, I would look at my kids and move, because I wanted to go with my
kids; at least my husband would marry and life would continue. But I felt if I leave my
kids behind they would suffer. But, I thank God for my husband; my husband left
working, looked after me for almost a week, because aliona ni kama I was going to die.
Nilienda mpaka counseling akanilipia, nikaenda-- yaani he walked, he stayed with and
told me, forget about money. (inaudible)
If you add them up, they are about 4 million.
Hon. Francis Nyenze: Almost 4 million.
Ms. Barlene Abonyo: So, what I am saying, we have always registered; the pain of
seeing you here, I have come late, I do not know. We have always registered, standing
here. So let me ask you, are you seeing any hope? Do you think we are going to get
anything from it?
Hon. Francis Nyenze: Thank you, Barlene Adhiambo; that is also very touching. This
is a lot of money, anyway. We will try the best we can and we have assured you – even
those who stole people’s money – for whatever reason, in case they escape our drag-net,
God will see them to the fourth generation. Here gentleman.
Mr. Charles Kibe: Good afternoon ladies and gentlemen.
Members: Afternoon to you.
Mr. Charles Kibe: I invested in more than two schemes.
Report of the Taskforce on Pyramid Schemes
232
Hon. Francis Nyenze: Jina.
Mr. Charles Kibe: My names are Charles Kibe and I took a bank loan and I invested in
DECI which is 350,000/- and I also invested in another scheme, Sasanet – Shs.116,000/-
The total amount of it is almost Shs.500,000/-, something close to 0.5 million. Up to date
I have not even got a single cent. So, we are appealing to you, Task Force. Because we
are trusting you. Most of these directors, their managers and the owners of these
schemes, we hear that they are walking under the protection of the government. They are
protected and they have full security which is from the same government. So, we are
wondering; is it the same government which is trying to (?) the same civilians who
are poor, like now the mama here who earned this money from cutting sukumas and all
that. So, please let it be a Task Force which is going to bear fruit for us. Thank you.
Hon. Francis Nyenze: Thank you, Charles Kibe and sorry for that and if people can be
that brief, we would finish very well. The next speaker – give it to that gentleman.
Mr. Francis Kanja: Bwana Chairman na wana kamati waliopoteza kama mimi,
hamjambo.
Members: Hatujambo.
Mr. Francis Kanja: Mimi naitwa Francis Kanja na ukiona mama kama huyo ama yule
mwingine aliekuwa hapa akimwaga machozi, ni chungu ambao tuko na sisi. Na anasema
vile alikata sukuma na ni muda mrefu kukusanya pesa hivyo. Na iwe ni shillingi hata
1,000/- ama 500/- mtu aliweka, ama ni millioni ama ni ngapi, hiyo ni pesa. Ama?
Mimi niliweka pesa kwa Jitegemee ambao walikuwa na jina vizuri sana wanavuruta watu
– ati Monteblanc – unasikia ni kama unaenda Uingereza. Mimi niliweka Shs.60,000/-
na hii nilikuwa nimekataa muda mrefu sana, lakini marafiki wangu wanakuja
wananiambia vile wamekula – vile wame-plant, wame-reap. Ndiyo mimi nikasema wacha
nijaribu. Kuenda kujaribu tu – nilikuwa ningoje four weeks. Wiki ya tatu, closed.
Nikapoteza yote. Nilikuwa nimekataa kuweka, na wakati niliweka tu, ikapotea. Niambia
hiyo uchungu iko namna gani ya ku-- nilikuwa nangojea ati shida zangu nilizo kuwa
nazo nitakuamua zingine. Ni vizuri ku-understand one another. By being arrogant ama
kukataa kusikiza, we shall be going nowhere. Na mimi sisemi Kinyua amefanya vibaya.
Alikusanya watu na hivyo chanzo cha hii Task Force. Kwa sababu Kinyua kama
hangefanya hivyo, hata nyinyi hamngekuwa hapa. Kwa hivyo, vile mimi nasema, nyinyi
mlifanya request kwa Minista wa Co-operatives ati tupate Kinywa aingie hapo. Ndiyo
nyinyi kama wanakamati mlifanya request, lakini sisi kama walioumia, nasema tupitize
resolution sasa ya kusema lazima tuwe represented hapo. Laa sivyo, tutakuwa tunaona
Report of the Taskforce on Pyramid Schemes
233
kama labda kuna mambo ambayo hatutakiwi kujua. Kwa hivyo, hiyo resolution tuipitishe
hapa, tuwe na representative hata kama ni mmoja kwa hii Kamati. Sikumbuki kabisa
lakini mimi naona kama ni mwaka jana na ndiyo muone machungu tuko nayo.Tuliitwa
hapa, hapa. Tulikuwa na Ministry representative hapa, na tukawapatia shida zetu na
tuka-register kama vile tunafanya hapa. Na tukaambiwa, in two months’ time tutapata
pesa zetu, ni kweli?
All: Kweli.
Mr. Francis Kanja: Two months tukangoja; May, June, July, August nikaenda kwa
Ministry. Pale nilikuta waliniambia, hakuna kitu tumeambiwa endeni mngojee.
Tumengojea mpaka wa leo. Do we have any (?) in that Ministry?. Na
wametuletea Task Force. You members of the Task Force msiwe mama wanalia hapa
pia ni laana. Wamelaani nah ii laana itakuja hata kwa wana Task Force.
(Speaker interrupted by Chairman)
Mr. Francis Kanja: Nipe dakika moja.
Hon. Francis Nyenze: Tumesikia, na kwasababu ni jambo tulikuwa tumeongea,
Francis, we do not want to open it again. What we want to do is, there are members who
have come from very far, they want to present and go back and the best thing would be,
instead of revisiting this issue because we were just appointed the other day, na
tumewaambia hatuna mandate, but we did our request. Ile kitu tutafanya, tunataka
tusikize kwa members, we record and do our best. Vile watu walifanyiwa zamani, we do
not want to revisit because those were different people, this is a different Task Force. We
want to do a good job so that these mamas do not continue suffering. But we do
appreciate the private initiative kama ya Kinyua na hawa wengine because hiyo ndio
ilisukuma serikali mpaka ikakuja na hii Task Force. So, the best thing is, we work
together, but let us not re-open that issue. Let us hear from the members because there
are many members here – some have come from as far as Nakuru and they want to go
back.
Mr. Francis Kanja: Now, my final word is this, we have said that you do not recognize
Kinyua as--
Hon. Francis Nyenze: No, we recognize and let us not open that one.
Mr. Francis Kanja: Documents ambazo zinawachwa hapa, kuna watu ambayo walileta
na sasa hawakubeba. What about that, wataleta lini?
Report of the Taskforce on Pyramid Schemes
234
Hon. Francis Nyenze: Oh, thank you. Documents zile zilikusanywa na group ya
Kinyua alituletea zote zikiwa kwa flash disc, zingine zikiwa kwa hard copy. So, all those
documents that you registered, tuko nazo. Lakini because we were also collecting the
data na tulikuwa tunataka kuwasikiza, tukasema pia, mkija hapa, bring whatever you can,
so that we can just move together. We want to hear someone different with a different
story. Yes, mama. Please mzime simu. We had agreed when we started, so that we
move quickly; please switch off your phones.
(Speaker speaking off the mic from the floor)
Hon. Francis Nyenze: Now, when you registered with Kinyua, you never left copies of
your ID Cards. Let me tell you what happened, we would get something like, Florence
Akinyi, she deposited with DECI 50,000/- and that is all. But now, we want ID cards, we
want those Contracts. Those are what we never got. Even if you left them with Kinyua,
we never got them. So, if you want your money, you have to register here, leave us with
the photocopy or you tell Kinyua to give us, because he never gave us that. So, it is not a
repetition because we do not have those documents. Even tomorrow is open; tomorrow,
the day after, just bring them. If you do not bring, we will not have that data. Thank you.
Is it a question?
(Inaudible question from the floor)
Hon. Francis Nyenze: They are not requesting for copies of the Identification Card, it is
there. Thank you, let that be checked right away. We are checking that but we want all
the transaction copies – whatever you did with DECI and so forth. Bring them because
Kinyua was very co-operative, but he only gave us the names, the scheme where you
deposited and the amount. That one was there in the flash disc, it was there in the hard
copy but there was no ID card, number, no receipts that you paid this money and there
were no documents of Contracts. Those are what we want. If you gave, either you tell
him to give us or you give us yourself, because if we do not have it when following other
people’s money, you will not blame us because we do not have those documents. Thank
you, mama, endelea.
Ms. Gladys Onduto: Task Force, ladies and gentlemen, good afternoon. If I repeat
myself, please forgive me because I have to express my feelings. My names are Gladys
Onduto. Sometime in the year 2006 in November, I took a loan, there is something I
wanted to do and before I used that money, a friend came to me and told me, mama, I
know you took a loan you want to do something, but it may not be enough. I took
Report of the Taskforce on Pyramid Schemes
235
Shs.900,000/- and the last time I was in the office was 1998. I happened not to come out
of the Co-operative I used to be in when I was working. That is how I got a loan.
Then, I first heard of DECI. Up to the time it was closing, I had deposited 412,000
shillings. Sasanet – Shs.300,000/-, Circuit – 160,000/- and then Fino – 40,000/-. There
was Golden Concept – 30,000/-. Then there was Denmar – 24,000/-. That totals to
968,000/-. I did this because as the saying goes, you do not put your eggs in one basket.
So I thought I could get something. I am repaying a loan, Shs.23,711/- which --
Amb. John Mukuriah: Mama, the last one-- hiyo umesema ya mwisho.
Ms. Gladys Onduto: Denmar – 24,000/- that is making a total of 968,000/- and I am
repaying a loan of 23,711/-. I am not on any salary and I live in Nairobi. So--
Amb. John Mukuriah: This is the amount you pay per month, the Shs23,000/-?
Ms. Gladys Onduto: I pay per month for the loan I took – Shs.900,000/-
Hon. Francis Nyenze: From which month?
Ms. Gladys Onduto: I took from a Co-operative Society. I took from Kenya Bankers
Co-operative Society.
Hon. Francis Nyenze: Oh yes.
Ms. Gladys Onduto: Actually, it is painful to repay a loan that you have not used. It is
very painful. It is only that I have come out of it; I do not want to be bitter because I will
get sick. But, I know one day, because this money-- Most of us did not steal this money
to put it there. But this is the money that God gave us to use. I think we used wisdom, it
is only that we were cheated. If you can get something more, it is better. So, I urge you.
Let me now speak about the Task Force. Task Force, you know what has come out of the
Task Forces in Kenya. We appreciate you and we love you and we know you can help
us. But coming out of what has happened about the Task Forces in Kenya, I am kindly
requesting you that do not be like the other Task Forces that have been because they have
not yielded anything.
Now, I will mention Kinyua’s name; you may not like it but it is the truth. Without
Kinyua, we could not have known this. He started this thing and Kinyua is not taking
any money; you are registering with Shs.100/- per pyramid. This is to help these people
Report of the Taskforce on Pyramid Schemes
236
who are in the office and they also go to Nyanza, Central and they use this money. So, if
other people are saying, I do not think that Kinyua is taking any money. Kinyua is not
taking any money. There are people in the office there – two of them – who are checking
this data and they also go out; they cannot go out out of their pocket. I think most of the
people who registered there agree to this. I di not come with any details because I knew
Kinyua has brought everything here. I took all my details, together with copy of my ID
and I gave there. Nairobi people were being registered and filed according to
Constituencies. So, I have to bring my papers again.
Hon. Francis Nyenze: We are open, Clarice.
One more thing, I am not going to take long. Fellow members, what I feel right in my
heart is that, whoever appointed these people should have put it that from every major
pyramids like Sasanet, DECI, like this other one, what do you call it – Clip; we should
have been represented here. That is my feeling.
Hon. Francis Nyenze: Represented?
Ms. Gladys Onduto: Whoever is the appointing authority the othe people should have
been in this Task Force so that we are sure that things are going to be done. We are all
human beings. Even in my bag there, there is a Bible and I am born again. And these
people who are born again have been sacrificed. So, money is good but it is evil; but I
am urging you people, see money like any other paper because I know that at one point,
you are going to be given something. You are going to be asked to take something. But,
please, for goodness sake do not take.
Hon. Francis Nyenze: Thank you, Gladys. You know members, this Task Force has no
problems with Kinyua and his officials. We have been meeting, he has my number, we
talk over the phone. He talks to all these people. It is only now there was more drama
here, when friends come and you want to out-do the other you get whatever. Otherwise,
we are friends, we talk. We preach together and because of his pressure, that is why the
Task Force came into being. But, we are saying, for us to succeed in getting back your
money, we are open tomorrow and the day after. Please, bring those documents; either
you collect them from Kinyua or you make sure they are with us, because we want to
follow that.
We want to agree either to go without lunch break and finish at 2.30 p.m. or we take a
break and come back. But, because there are some people traveling far, that is my own
fear; if I am wrong I stand to be corrected. Can we instead of breaking go up to 2.30 p.m.
Report of the Taskforce on Pyramid Schemes
237
so that we give the Secretariat time to digest and look at this and do recording. Can we
go without a break up to 2.30 p.m. and then we come tomorrow?
From Floor: Yes.
Hon. Francis Nyenze: Majority of members have agreed. So, you go at the back there
is a lady there-- if we can allow three people now and then we close, that can be good.
This lady, that gentleman and then we will get another one. Give that lady the mic.
Ms. Angelica Wairimu: Habari zenu wote. Majina zangu ni Angelica Wairimu.
Nimeweka pesa na Sasanet 2.7 million shillings. Nimeweka pesa na DECI – 300,000/-.
Hon. Francis Nyenze. Anza tena na uende pole pole because we are also recording here.
Ms. Angelica Wairimu: Nimeweka pesa na Sasanet 2.7 million shillings. Nimeweka na
DECI 300,000/- less six because it is 96,000/-, 96,000/, and 100,000/-. That is
300,000/- shillings.
Hon. Francis Nyenze: Three hundred thousand shillings.
Ms. Angelica Wairimu: Yes. Now, my question is, unataka kutuambia serikali haiko
aware kwa hii scandal kubwa hivyo, kuona mtu ananyanyaswa hivyo na wamenyamaza,
wamenyamaza more than a year. Neno moja ya Presidnet wetu inatosha. Hawa watu
warudishie watu pesa zao. Mbona serikali imenyamaza hiyo muda wote? Hii Task
Force, niulize nyinyi, sio kama zile zingine zimewekwa na serikali miaka yote – miaka
nenda, miaka rudi na hatujaona mafanikio mema. Yetu, ni nani ataturudishia pesa – ni
Kinyua, ni President ataongea, huyu Minister wa Co-operative
(inaudible) we are not interested in that. What we want is neno moja na
inatosha bila Task Force. Wale wote wamekula pesa na wako na hizo records.
Waambiwe one word from the government – from the President is enough. Hawa watu
wamekula pesa ya watu Kenya mzima warudishe, that is enough and that is what we are
interested in.
Hon. Francis Nyenze: Wairimu, you are through?
Ms. Angelica Wairimu: I am through.
Hon. Francis Nyenze: Thank you, thank you. You know Wairimu is very brief but
very tough and it is because she is very bitter. And if you add 2.7 plus 300,000/- that is 3
million shillings. I do not have to repeat this because we have said it time and again, but
Report of the Taskforce on Pyramid Schemes
238
because of the frustrations that the members have gone through, I can understand and the
Commissioner is here, he can understand. Because some of them are also victims; either
them, their wives, their sons. This thing, as Dr. Ligabo said, it catches everybody in
Kenya. You find someone from Kitui, from Nyeri, someone from Busia, someone from
Kwale – everywhere, even Turkana. So, there is nobody who was there. Now, what we
do is, before the last two people present I want to announce that we are Nairobi up to
Thursday. We are here today, tomorrow and Thursday. All those who wish to file their
receipts – because that is the most important. That in case we get this money, these are
the people who should be considered for refund. Make sure you bring those receipts
because even if you say you paid this and there is no proof, money will go first to those
people who have proof; I have Contract with these people, they are paid back. Say the
government forms a mechanism on how to refund this money and then it will be refunded
to you. So, up to Thursday, please register here and you will get that. All the other
people who come from very far, please, file those with District Co-operative Officers.
Instead of traveling from very far, we will also be going to the districts. So, this is meant
for Nairobi and the surroundings for all those days. Registration should be individual.
Do not register as a group. You lost money as an individual, so register as an individual
and we will do the best we can. Now the last two speakers – there was that gentleman
then any other person that will wish to speak.
Mr. Kuria: Habari zenu?
Members: Mzuri.
Mr. Kuria: Naitwa Kuria. Hata mimi nilipigwa na hii mtego ambaye (?)
kulitokea (?) serikali ikiangalia na macho. Unaona, fisi ikiingia kwa boma
yako, mbuzi wanaanza kufania. Mbuzi ukiangalia na macho ukitazama ni (?)
Baadaye wakati mbuzi inayemalizwa, ndiyo mtajitokeza mnaanza kusema mnawafuata.
Sisi hatujafurahia vile serikali imekimia muda mrefu mpaka sisi wenyewe wengine
wamepoteza watu wao – wamekufa, wako kaburini. Wengine, watoto hawasomi,
wamekuwa chokora, nyumba zingine wame-divorce. Tuombe Mungu, mnaweza kuwa
mmetumwa kama malaika. Mfuate hizi pesa hata kama baba na mama waliaga, watoto
warudishiwe zile pesa waendelee na masomo.
Tumepoteza pesa; kama kwa boma yangu zaidi ya Sh.3.4 million. Jitegemee – 700,000/-,
DECI – 500,000/-, na hao wafanya kazi nilikuwa nao ni zaidi ya 15, walipoteza kazi.
Mimi sasa siwezi sema Kenya ina vision 30 years na kuna kitu tutafanya, ikiwa
mwananchi mwenyewe amepoteza pesa serikali na anajenga nchi, na analipa tax. Mimi
sitaweza kuongea mengi, lakini ninamwombea Mungu isiwe mtaokota zile makartasi
halafu baadaye, ziende kama za akina Artur. Tuombee hata Kibaki mwenyewe Mungu
Report of the Taskforce on Pyramid Schemes
239
amguze aone kuna wale masikini – wacha hata mtu kama mimi; kuna mama pengine
aliuza ng’ombe yake, Shs.20,000/- na amekuwa mzee, na ndio ilikuwa tegemeo yake.
Mimi bado niko na jinsi ya kutafuta. Lakini kuna wale waliwekwa knock-out – hakuna
kurudi tena, ni kuomba omba. Kwa hivyo--
Hon. Francis Nyenze: Thank you Kuria. Umepeana makartasi pale?
(Response inaudible).
Hon. Francis Nyenze: Thank you. Sasa tunataka the last person. This guy and this
one can consider this mama, ama mtasikia mbaya?
From Floor: No
Hon. Francis Nyenze: Wote ni wetu?
From Floor: Ndiyo.
Hon. Francis Nyenze: Sawa; very briefly; na wewe, beause they have favored you, one
word so that two two guys do not feel bad. Haya, ongea.
Ms. Emily Muoria: Thank you so much. I will be very brief. I just wanted to thank
you for this opportunity for us to express ourselves, because people have said everything,
I am not going to repeat. We are very bitter, we have lost money, families have divorced
and many things have happened. But, what I wanted to tell you is that you take caution
because there are others now who are coming in and they are saying that they are
representing you and they are coming to the offices and now they have started again
collecting money because they are saying they are representing you. That is why I said
let me say this so that you can find a way of letting Kenyans know that you are there and
this is how to identify yourself. Otherwise, we are going to start the conning game and it
will never end. That is what I wanted to say.
Then I have a very sad story of a mama who was waiting for this money, she was a
cancer patient and you know she died before she could get her money. She had told me
she wanted to make money so that she can pay for her cancer treatment. She died and
never got her money back. This and many other stories are there, but please, make sure
that they are not conned again and thank you so much and God bless you.
Hon. Francis Nyenze: Hukusema jina.
Report of the Taskforce on Pyramid Schemes
240
Ms. Emily Muoria: My name is Emily Muoria.
Hon. Francis Nyenze: If you can tell us those people who are masquerading as
representing us, getting money from people – even if you register there – we will be very
grateful because we do not want people to suffer more. And also, that cancer patient who
died, if you can contact the relatives so that we get those papers; as one member said, this
money can go back to the children or the relatives who are left behind. Yes, you give us
that information.
Ms. Emily Muoria: Thank you so much.
Hon. Francis Nyenze: So, the two gentlemen who were left.
Mr. Josiah Kaudo: Mimi niko na machache sana, Bwana Chairman. Majina naitwa
Josiah Kaudo. I had around Shs.170,000/- with Clip Investment; I have around
Shs50,000/- in DECI and around Shs.50,000/- with Sasanet. What I want to say is very
brief; mimi Bwana Chairman, I am not blaming the people who went and invested their
hard earned money in this thing. I am fully blaming the government for this kind of mess
that came. The reason why I am saying this is that these schemes were registered with
the government of the Republic of Kenya. So, there is no way the government-- they
were paying their revenues to the Kenya Revenue Authority. They were paying all the
legal requirements. So, there is absolutely no way, Bwana Chairman to speak the truth.
For example, I divorced with my wife because part of this money was from loans from
the Sacco. When my things were being auctioned in the house, we had to disagree now.
Mr. Chairman, people are really suffering and people have suffered. So, if the
government is sincere, then let us give you the benefit of the doubt and let us see whether
you will do something for us. But people have suffered, and people are suffering and
they will continue to suffer.
Hon. Francis Nyenze: Thank you very much, Josiah and the last person and we hope
that you deposit those transactions with us. The last person we said is that young man.
Mr. Franklin Makokha: Good afternoon. My names are Franklin Makokha. I
invested in Amiti that was situated in Westlands – Shs300,000/- . I also invested in
Golden Life Concept – Shs15,000/-, I invested with Pozera – Shs.20,000/-. I also
invested with Christ for All Winners Investment – Shs.20,000/- So, in total I invested
around Shs.360,000/-. My concern is, in this country (inaudible)
I do not know if these people understand the magnitude of this scam because even a
State-owned media is not here. How will the information reach upcountry? It must be
publicized day and night for everybody to know about it. So, my request is, please
Report of the Taskforce on Pyramid Schemes
241
mobilize the – if it is the ministry or the person responsible – that at least KBC should
cover you during the hearings. Thank you.
Hon. Francis Nyenze: Thank you, Franklin Makokha. He is a young man speaking
beautifully. Now, members, we have come to the end of today’s public hearings. We
have heard, we have been disturbed because we are hearing from the real people who
were conned. Some have died following this money. Some like that lady from Thika
Road, she has suffered so much. This lady has lost so many millions. I can recall each
one – not that I have that telegraphic memory but, you know when something is so bitter,
it speaks to the brain and I am sure the Commissioners and the Secretariat have registered
that. We are so sorry, and some of us are victims. You have not heard our story but we
have to receive from you so that we sort out this problem once and for all. Even if I as a
person I may not have lost money, could be my wife lost and my son lost, or my daughter
and that is what happened to us. I have heard, when we shared, how these crooked
people got money. But the worst bit is, I do not know who said, there is a poor woman
who sold the only cow to take that money. You know, someone like this can lose a
million, feel a pinch but an old, frail woman losing the only cow in the village is more
than that one million, is that not true>
The worst thing about this investigation is that it affects the poorest, hopeless Kenyans.
The majority – this mama used to sell sukuma wiki. If she looked for that money and
convinced the husband to borrow from the bank and borrow again and lost everything,
and up to date she is paying, what pain. It is a big pain.
So, my prayer with my group, let us do what is right because Kenyans, as the young man
said it, they are frustrated. They have seen Commissions come, they do
recommendations, they hand over and they gain dust in the shelf and that issue goes.
Another scandal comes, is that not Kenyan history? We want to make a difference and
the difference will be; what we do, because we want to do what is right and judge us only
after three months. Tomorrow, those who have not come with their documents, come
with them. Whenever you go out, tell the other friends. We will also do it through the
print media or whatever, but we will still tell Kenyans. But tell friends to come and tell
their story. Even if they do not get a chance to present, let us have the documents. The
most important thing is even not to talk here on the floor but send those documents,
because that is the evidence that we require to prosecute these guys and also whatever is
gotten to be distributed fairly to you.
With those few remarks, when we started, there is a man who prayed from the
Participants, the Investors. Now, we want a lady from amongst you to stand up and pray.
Thank God for the time we have been together, for the deliberations and contributions
Report of the Taskforce on Pyramid Schemes
242
and for this thing to succeed. From you people, we stand and one person volunteers to
come and pray.
( Prayer by a Participant:) Let us pray. Father in the name of Jesus, we come before
you this afternoon with thanksgiving in our hearts. Thank you, Lord for this far you have
taken us. Though without money but silver and gold belongs to you and you have
provided for us, King of glory. My Lord and my Father I pray Jehovah God that the
work we have started doing today, Jehovah God, will be accomplished and we shall say
surely, we have seen the Lord. Father, we pray even for the Task Force; my Father touch
them, oh King of glory. Let them do the work (?) My Father touch and everyone of
them, Jehoha God. Lord God Almighty we know that those who are chosen are only
chosen by you, these are chosen by you. Thank you for choosing them Jehovah God.
Father, I pray, oh God for the people – ladies and gentlemen – who are here. Most of
them are very bitter, Jehovah God. I pray that you cool us as we fight this we know we
cannot fight on our own but Lord, you fight for us oh King of glory. I pray that each one
of us will come to you in prayer because prayer changes things, Jehovah God. We hope
that this time things will change all around. My Father and my Lord, in the government,
Jehovah God, we pray that even those big people who have money, who have taken
money from us that you touch them because you made them in your own image. Father
speak to them, it is only you who can speak to them, Jehovah God. Father, our plan is
not to take them to Court but what we want to see is to get our money back, Jehovah
God. Thank you dear God, we bless you and exalt your name Jehovah God. How I pray
that you make the others who have not come today so that they can come and register
Jehovah God, so that we shall be united. Lord, we give you praise and we thank you.
As we are closing this afternoon Jehovah God, be with us and give us journey mercies, oh
King of glory. We thank you and we bless you. I pray that you provide for the people
who have nothing even to put on the table, my Father. I know that there are people who
are really suffering and have even been thrown out of their houses, Jehovah God. My
Father, house them becaue you have promised that shelter and food you will provide for
us. We thank you, dear Lord and we know that the work that you have started doing, you
will accomplish. We thank you and we bless you. For it is in Jesus’ name we pray with
thanksgiving; and the people of God say, Amen. Be blessed and pray, intercede.
Hearing adjourned at 2.30 p.m.
&&&&&&&&&
Report of the Taskforce on Pyramid Schemes
243
VERBATIM REPORT
OF THE TASK FORCE ON PYRAMID SCHEMES
25TH FEBRUARY 2009
Report of the Taskforce on Pyramid Schemes
244
RAILWAY CLUB - NAIROBI
VERBATIM REPORT OF THE TASK FORCE ON PYRAMID SCHEMES
MEMBERS PRESENT:
Hon Francis Nyenze - Chairman Amb. John Mukuriah - Vice Chairman Mr. David Odhiambo Oduol - Member Mr. H. Mwai Rurigi - Member Mrs Sakina Adan - Member Mrs Emily Mwachoo - Member Mr. Joseph Kibowot - Member Mr. Zebedeo Onguti - Member Dr Machanja Ligabo - Member
Secretariat
Mr. Philip Gichuki - Secretary
Ms. Roseline -
Hearing began at 10.20 a.m. with Hon. Nyenze in Chair.
Hon. Francis Nyenze: Hamjambo. Asante kwa kuja. Leo ni siku kuu na tungetaka kuanza kwa
sababu tunajua mmetoka mbali nap engine mnataka kutueleze zile tuliwauliza halafu mrudi
mahali mulikotoka. Na kwa sababu mko na kazi mingi, na mmekuaja asubuhi, hatutaki
kuwaweka hapa tukingojea wale wengine waje, ama namna gani?
(Response inaudible)
Hon. Francis Nyenze: Kwa hivyo, ningeomba moja wenu, Investors, aje hapa aombe ruhusa
kwa Mungu halafu tuanze; moja wenu aje atuombee tuanze. Thank you.
Report of the Taskforce on Pyramid Schemes
245
(Opening prayer by a participant)
Basi, tuombeni. Baba, katika jina la Yesu, tunakushukuru, tunakuabudu kwa kuwa wewe ni
Mungu mkuu. Tunasema ni asante kwa jambo ambalo umetusaidia kufanya asubuhi ya leo.
Asante kwa wale ambao umewawezesha kuja na kuwezesha kutenda kazi ilioko mbele zao.
Mungu tunakushukuru kwa kuwa hakuna jambo ambalo inaweza fanyika usipokuweko. Basi,
Mungu tunakualika ukachukue ushukani, uweze kuandama na wenye kuongoza kikao hiki, wenye
kuhudhuria; ukaongoza kila wazo, kila fikira na mambo yakaweze kufikiwa kwa njia ambao
inaofaa. Zaidi ya yote Bwana ukaweze kuonekana kuanzia asubuhi hata jioni na masiku ya jao
kwa manufaa na kukusifu jina lako. Ni asante Mungu, kwa kuwa utatupita katika kila jambo.
Na ni katika jina kuu la Yesu Kristo tunaomba tukiamini. Amen.
Hon. Francis Nyenze: Asante sa kwa maombi. Sasa tutaanza kikao chetu na kwanza ningetaka
kuwaeleza hawa ni akina nani. Serikali, kupitia kwa Ministry ya Co-operatives, ilionelea ni
vizuri ku-appoint (?) ili tuangalie mambo ya pyramid schemes. Tunajua nyinyi uliweka
pesa zenu huko na mkadanganywa ikazaa pesa nyingi na watu wakatoroka na pesa yenu. Kwa
kilio chenu, serikali akaonelea itengeneze hii Task Force ili tutafute wale walikuwa wanaongoza
hizo pyramid schemes, pesa zile walichukua kwa watu ni ngapi; waliziweka wapi na hizo bank
accounts tuziangalie. Zile pesa tunapata, tuwarudishie nyinyi na hawa watu wachukuliwe atua
na serikali kwa sababu waliibia rahia. Kwa hivyo, hii Kamati mnaona mbele yenu ni ya
kuchunguza na kufanya recommendations kwa serikali, vile hawa watu wanaweza kuhukumiwa
tukishachukua hizo pesa kurudisha kwa wenyewe.
Bila kupoteza wakati, vile tulisema hapo awali, kwa sababu tunajua wengi mtaenda mbali,
tutaanza na kile tungetaka kutoka kwenyu – wewe utuambie jina yako, uliingia which pyramid
scheme, ulitoa pesa ngapi na uko na receipt ama transaction documents na utuambie ile unajua.
Halafu, tuna-record kila kitu hapa. Kwa hivyo, tutaanza na mtu wa kwanza. Ni vizuri mmekuja
mapema, kwa sababu mtakuwa na muda mrefu kuliko wale wengine. Watu wakija hapa
hawatakuwa na wakati kama nyinyi. Kwa hivyo, “the early bird catches the biggest worm”,
mlipanga vizuri.
Hapa ninakumbushwa, kama mnaweza switch off your phones ili tusiwe tunapoteza wakati saa
zile simu zinalia. Kwa hivyo, tutaanza na mtu wa kwanza, na njia itakuwa ni ya kuinua mkono
Report of the Taskforce on Pyramid Schemes
246
na unasema your name, which pyramid scheme – utupatie details za hizo documents na how
much you invested, what they promised you, how much you got back, date, vitu kama hizo
utatuambia. Kwa hivyo tunataka kusikia mtu wa kwanza. Tutapatia kila mtu three minutes
atuambie hiyo story yote na tutakuwa tuna-record ili tufuate pesa yenu. Kwa hivyo, mkono wa
kwanza tunataka kuona tuwapatie hii. Ukiona mmekuja, kulikuwa na shida. Thank you.
Mr. Wilson Onyoche: In the spirit of saving time, kwa majina naitwa Wilson Onyoche. I work
in Nairobi, I am a family person. I invested with Clip. I invested Shs.150,000/- na wakawa
(Interruption due to technical problems with the microphone)
Mr. Wilson Onyoche: Waliweza kutudurishia pesa according to the Agreement, the interest, for
several months before they escaped with the whole amount. They were to give us the money
back after investing.
Hon. Francis Nyenze: We missed the first part because of the microphone. It is now very clear;
we will give you a few minutes. Anza tena.
Mr. Wilson Onyoche: Kwa majina naitwa Wilson Nyoche and I work here in Nairobi. I
invested with Clip. The deal was, you invest for six months, you close up the Contract, you get
back the capital and how they took their part of the share was their (?) but the deal was they
give back your capital but the interest you earn in the six months. If you desired to renew the
Contract, it was between you and them. I invested and they gave back that money for about four
months. But, on and on, by June last year – June is when they starting corrupting; they would not
give word, they never said anything and that was all. So, our plea is, whatever can be done
through the government operators to compel these people to give us our money. By staying with
the money was a breach of the Contract and in fact these people used to operate with Co-
operative bank and sometimes they shifted to National bank. It did not start as investment co-
operative. It started as a Clip – Christian Leaders Investment Plan. That is how we saw it taking
its (?) as a co-operative simply because what was going round, registration and all that.
Hon. Francis Nyenze: How much did you put in it?
Report of the Taskforce on Pyramid Schemes
247
Mr. Wilson Onyoche: Shs. 150,000/-.
(inaudible question from Members)
Mr. Wilson Onyoche: Yes, 150,000/- got lost according to the Agreement.
Hon. Francis Nyenze: Any other thing?
Mr. Wilson Onyoche: (inaudible)
Hon. Francis Nyenze: Thank you. Anybody kwa Clip, like that lady? Kuna mtu mwingine
hapo wa Clip? Kuja.
Mr. Enos Okumu: Kwa majina naitwa Enos Oduori Okumu. Mimi nilikuwa nafanya na
Barclays Bank halafu nikapoteza kazi. Ndiyo nika-apply pension contribution which was about
Shs.600,000/-. So 500,000/- shillings nikapeleka kwa Clip Investment Co-operataive Society
tarehe 28, February 2007. Agreement ikasema kwamba, kuanzia April, mwisho was mwezi
nitalipwa 10% of my investment which is Shs.50,000. Then I was paid for two months; that is,
April 30th and May 30th. From there nikaambiwa account ilikuwa frozen – ilikuwa blocked by
Central Bank. Sasa nikakuamia hapo.
Hon. Francis Nyenze: So, you lost Shs.500,000/-.
Mr. Enos Okumu: I was only paid--
Hon. Francis Nyenze: You were paid Shs.50,000/- and another for two months – Shs.100,000/-
?
Mr. Enos Okumu: No, I was paid Shs.50,000/- in April and Shs.50,000/- shillings in May. I
had invested Shs500,000/-. This one was interest on my investment.
Hon. Francis Nyenze: Okay, and the money you feel you lost through Clip is how much, on the
Agreement?
Report of the Taskforce on Pyramid Schemes
248
Mr. Enos Okumu: Because, they were to pay me an interest and then I claim the whole
amount by end of August, I lost my Shs.500,000/-.
Amb. John Mukuriah: So, the summary is very simple; you lost interest for three months
which is Shs.150,000/- is it not so; because you were paid for only two months? And then you
also lost your capital investment of Shs.500,000/-. So, that is what we are capturing, ni sawa?
Thank you, Bwana Oduori.
Hon. Francis Nyenze: Asante Bwana Oduor. Now, do we have anybody from Clip, before we
leave Clip? The third one and then we come to the lady. Kaa karibu; na documents mtakuwa
mnapatiana.
Mr. Julius Muita: Kwa ajmina naitwa Julius Duncan Muita. Nimekuwa Nairobi for some
time. The time I entered Clip was in May---
Hon. Francis Nyenxe: Excuse me, keep the microphone far from your mouth na urudie jina,
uende pole pole tu, ndio tuchukue record.
Mr. Julius Muita: My names are Julius Duncan Muita. Mimi jiandikisha na Clip tarehe 23
mwezi wa nne, 2007. I invested with them KShs.200,000/- plus the registration of Shs.1,000/-
plus Shs.500/- for any literature that one was entitled to buy as one of the requirement to invest
with Clip – which I did. The Agreement was that at the end of the month, I was supposed to be
paid 10% of my investment. I only earned one month interest – that was the month of May.
Since then, things became complicated and I was never paid any interest. With regard to the
Agreement we signed, they clearly stated that in case one party defaults, there were
consequences that ought to have followed. On the Clip side of the Agreement, nothing has been
done up to now, but on our part we have lost; we had not defaulted in whichever way. In case
we now want to total up the months that we ought to have earned interest, we will find that up to
now, we have lost quite a lot despite the fact that we are only seeing the principal amount that we
had invested initially, but in essence this time, we have lost a lot of money. Because of the
situation we have undergone, we have given up in a way. We are only saying, if there can be a
Report of the Taskforce on Pyramid Schemes
249
lee way for one to get back the principal investment, it can be prudent. But, if we calculate the
loss that we have made, it is great.
Hon. Francis Nyenxe: So, Duncan, the principal you put was how much?
Mr. Duncan Muita: It was Shs.200,000/- plus Shs1,000/- registration fee, plus Shs.500/- in
case I bought the literature. That is, Shs.201,500/-.
Hon. Francis Nyenxe: Good. Thank you very much. We have captured that information.
Mr. Mwai Ruingi: There is something we forgot to ask; who were the promoters. Can we start
with you Duncan; can you remember any director – who did you pay to? Ulilipa nani? Na
unakumbuka ofisi hiyo ilikuwa wapi?
Mr. Duncan Muita: The director’s name is Peter Alfred Ndakwe and the head office is at South
C, Destiny House.
Mr. Mwai Ruingi: So, you all paid at South C office?
Mr. Duncan Muita: Yes, at Destiny House.
Hon. Francis Nyenxe: Thank you very much. At least we have heard from Clip. We will give
this chance to this lady who raised her up her hands.
Ms. Catherine Wangui: Kwa majina naitwa Catherine Wangui Muchiri, nimeokoka. Nilikuwa
nafanya kazi na Telkom Kenya, wakati huo nikaenda retrenchment na hizo pesa nilipata ndio
nilipeleka uko, ile kidogo. Nilipeleka Shs.80,000/- kwa Family in Need Organization. Ilikuwa
huko Kenyatta Market. Nilipeleka tarehe mbili mwezi wa nne, 2007. Wakati huo ndio
walituambia after umepewa hiyo pesa, after three months unapata Shs.80,000/-; ungepata
Shs.160,000/-. Haikufanyika hivo, wakati ilikaribia wakatuambia tungonjee kidogo, turudi the
following month. Tukangojea tena tukaambiwa ati Central Bank of Kenya imefungia hizo pesa,
tungojee.
Report of the Taskforce on Pyramid Schemes
250
Hon. Francis Nyenxe: Unaweza kukumbuka any of the directors, wale walikuwa huko
wanawambia hivyo?
Ms. Catherine Wangui: Nakumbuka mwenyewe tu-- hunge-invest kama huja nunua hii kitabu
for Shs.200/-. Mwenye alinipa hii kitabu anaitwa John Ndungu Wanyoike, ndiyo mwenye hiyo
organization.
Hon. Francis Nyenxe: Wanyoike?
Ms. Catherine Wangui: Yes.
Hon. Francis Nyenxe: Another question; hii Shs.80,000/- ulikuwa upate after three months
another Shs.80,000/-?
Ms. Catherine Wangui: Another Shs.80,000/-.
Hon. Francis Nyenxe: Na hukupata chochote?
Ms. Catherine Wangui: Hata ndio hizi kartasi.
Mr. Mwai Ruingi: The Contract you have inasema hivyo?
Ms. Catherine Wangui: Hatukupewa hata kitu kimoja.
Mr. Mwai Ruingi: Ni risiti tu ulipata ya pesa?
Ms. Catherine Wangui: Ni risiti tu ni ile waliniandika wakati nili (?) kwa Post Bank.
Mr. Mwai Ruingi: Kwa hivyo, hakuna Contract ya kusema hivyo?
Ms. Catherine Wangui: Hakuna.
Report of the Taskforce on Pyramid Schemes
251
Mr. Mwai Ruingi: Hiyo maneno mlizungumza tu? Hiyo ni maneno tu mlizungumza? Tueleze
tu.
Ms. Catherine Wangui: Ndivyo walituambia.
Mr. Mwai Ruingi: Hiyo ndivyo mliambiwa.
Ms. Catherine Wangui: After three months tutapewa hizo pesa.
Mr. Mwai Ruingi: Very good.
Hon. Francis Nyenxe: Have you given those documents to the Secretariat?
Ms. Catherine Wangui: (inaudible)
Mr. Mwai Ruingi: What she has said is that she paid at Kenya Market office ya Fino. So, that
is alright and we know Wanyoike was the director. Next person? Simama kidogo, Catherine,
hujamaliza; hii pesa ulilipa kwa ofisi au ulichukua ukalipa kwa account ya bank?
Ms. Catherine Wangui: (inaudible)
Mr. Mwai Ruingi: Post Bank, Kenyatta Market?
Ms. Catherine Wangui: (inaudible)
Mr. Mwai Ruingi: Kwa hivyo, hiyo account number ya Post Bank, Kenyatta Market
umeshapeana, kila kitu?
Ms. Catherine Wangui: (inaudible, speaker off mic), ndio
wakatuandikia hii kartasi.
Mr. Mwai Ruingi: Na hiyo kartasi inaonyesha account pale ulilipa?
Ms. Catherine Wangui: Inaonyesha nililipa.
Report of the Taskforce on Pyramid Schemes
252
Mr. Mwai Ruingi: Kila kitu iko hapo?
Ms. Catherine Wangui: Kila kitu iko hapa.
Mr. Mwai Ruingi: Na umepeana uko?
Ms. Catherine Wangui: Ndiyo.
Mr. Mwai Ruingi: Asante. Ngojea kidogo, Catherine. (to members) Or is it okay? Asante,
tumeshukuru. Wapi Muita. Muita, hata nyinyi mulilipa hii pesa kwa account au mlilipa kwa
ofisi.
Mr. Duncan Muita: Kama mimi nililipa katika ofisi zao, lakini nilipewa receipts.
Mr. Mwai Rungi: Mlikuwa mnalipa kwa ofisi zao?
Mr. Duncan Muita: Eh, kwa ofisi zao.
Mr. Mwai Ruingi: Unapewa hapo, hapo, eh?
Mr. Duncan Muita: Na hivyo hujui account ya Clip ambayo hiyo pesa iliingia.
Mr. Mwai Ruingi: Ni risiti tu uko naye?
Mr. Duncan Muita: Risiti ninazo na nimepeana huko nje.
Mr. Mwai Ruingi: Asante, tunashukuru.
Hon. Francis Nyenxe: Ikiwa tuko na mtu hapa ndani na hajapatiana details zake pale,
transactions, receipts and so forth, ataenda apatiane halafu aje a-present. Now, we call the
gentleman.
Report of the Taskforce on Pyramid Schemes
253
Mr. Martin Githinji: Kwa majina naitwa Martin Githinji. Nili-invest na Kenya Multipurpose
Business Enterpreneurs Ltd in December, 2006. Initial capital ilikuwa Shs.20,000/- na
Shs.5,000/- legal fees.
Hon. Francis Nyenxe: Twenty thousand?
Mr. Martin Githinji: Thirty thousand na five thousand legal fees.
Mr. Nicholas Wambua: Some people went to Court (inaudible)
Anyway, I cannot say for nothing, but what they did, they did. If they have something
somewhere, you have also to follow and see where you can get a piece of each. Those people
who were soliciting to work for us, to see whether we can get money,
(inaudible) the money we had contributed for Court. So, now the government was
aware because even there are some papers that were (inaudible) dealing
with these pyramids. You see, when you see something coming from somewhere and you have
already got a bit of a bit, sometimes you get blind and you continue.
Now with the government now in, we hope there must be something at the end of it. And you
need co-operaetion from the investors – whether we can get something from the money. People
are suffering, in fact, because I had not got other sources of money, my children could not be in
school right now, because I was borrowing here, borrowing here but because I had a pay slip, I
could go and pay back in small amounts, even now I am paying and I have not finished paying.
Thank you.
Amb. John Mukuriah: Nicholas, so you lost Kshs.300,000/- from Circuit na hiyo yote
ilipotea?
Mr. Nicholas Wambua: (inaudible) So, Shs.300,000/-
.
Amb. John Mukuriah: Kwa Circuit, okay. Now Sasanet--
Mr. Nicholas Wambua: Sasanet I have got nothing with them.
Report of the Taskforce on Pyramid Schemes
254
Amb. John Mukuriah: Hiyo ulipata mali yako?
Mr. Nicholas Wambua: Nilipata pesa yangu yote.
Amb. John Mukuriah: Na interest na kila kitu?
Mr. Nicholas Wambua: Interest na kila kitu.
Amb. John Mukuriah: Asante.
Hon. Francis Nyenze: Thank you very much and Nicholas we will follow up that one. We
want to call the next presenter. You do it by lifting up your hands; give the microphone to that
gentleman.
Mr. Moses Kibe: Thank you very much Task Force or Commission. We were almost losing
hope and I hope we are going to get something out of everything. I have some two questions.
Hon. Francis Nyenze: First give your name.
Mr. Moses Kibe: My name is Moses Kibe. I have two questions; the first question is, I do not
know whether the money that we are saying is here, we have registered, you as a Task Force, I
do not know whether it is within your mandate; have you verified that it is proven and it is
somewhere or it will just be another Task Force as we have seen. Sorry, we have a lot of bad
history in our country about Task Forces, but I am sparing you for that one. Have you verified
that the money is--
Hon. Francis Nyenze: What we want is, first, you tell us your story and then the question we
will answer. Instead of--
Mr. Moses Kibe: My story is so big and I do not want to give the story here; it is so big.
Number two, I have never been in any Task Force, I do not know whether within the mandate
Report of the Taskforce on Pyramid Schemes
255
you have been given you can extend or that is what you have been given and yours is just to
write a report and that is all. I told you we have a lot of bad history behind us.
Hon. Francis Nyenze: Moses, thank you for your contribution, that you for your two questions
and what we do not understand is, did you come here to be helped or you came as a ‘doubting
Thomas’? Because now,---
Mr. Moses Kibe: I came as both; I came as a ‘doubting Thomas’ and (inaudible)
Hon. Francis Nyenze: Then, the question here is, these other people and including the some
Commissioners here, we have stories even could be bigger than yours; and so much has gone
bad, but we do not expect you to come and start lecturing people. Tell us your story – if you do
not want to tell it, we ignore you because we do not know whether you invested or you are one
of those trouble-shooters. So, can we have the next contributor – someone who lost money and
they want to present their story. Yes, give to that lady.
Ms. Ann Wairimu: My names are Ann Wairimu. I invested with DECI in February, 2007, I
gave Shs.48,000/- which I was expecting to get plus the interest after three weeks which I never
got. After that, I stayed for sometime, I heard about Jitegemee where I went and invested
Shs.100,000/-. When we went there, it was about a day for me to get the interest, but when I
went there I was told there is not money. We found some notice on the board saying we wait.
Up to this day I have never gotten anything. So, I hope you people will help us to recover the
money, if not all – at least some of it.
Hon. Francis Nyenze: Thank you, Ann Wairimu, but for Jitegemee you put how much?
Ms. Ann Wairimu: One hundred thousand.
Hon. Francis Nyenze: Thank you. Thank you, Ann Wairimu for being brief and I hope you
have given your documents – the photocopies and so forth. Now, we want to listen to any other
person. Thank you, welcome.
Ms. Rose Kwamboka: Habari ya asubuhi, nyinyi nyote.
Report of the Taskforce on Pyramid Schemes
256
Members: Mzuri.
Ms. Rose Kwamboka: Kwangu kwa majina naitwa Rose Kwamboka. Mimi sikupeana pesa. I
went to DECI with my friend – my colleague. Nilipeana Shs.50,000/-. I went to Jitegemee
nikapeana Shs32,000/-. Again I went to another to another one called (?) I did not
give much, it was only Shs.10,000/-. Nilipata, na marafiki wengine walipata na sisi tukaona ni
mzuri tuingie tupate at least something small. Kwa vile tumeona mambo imeamuka, tumeona
pesa. (inaudible) and we pray God so much, Mungu akusaidie--
Sio ati (inaudible) Ni vile mambo ilienda, sio nyinyi wabaya – ni
vile mambo ilienda. Kwa hivyo, tafadhali mtusaidie hizo pesa tupate hata kama ni kidogo – at
least we get something. Na wengine tuko na shida--- Isipokuwa sasa kurudisha, ndiyo hatujui
what they intend to give us is something small ama ni vile tu tulipeana ndio mnarudisha. Hiyo ni
nyinyi ndio mtatuelezea.
Amb. John Mukuriah: Mlipoteza nyinyi nyote? You lost everything?
Ms. Rose Kwamboka: Mimi sikupata anything. Saa ile nilikuwa nimekaribia to get
something, wakafunga. Tumengojea na kuomba sana.
Hon. Francis Nyenze: Ni 2007?
Ms. Rose Kwamboka: Yea, ni 2007.
Hon. Francis Nyenze: Thank you, Rose. Thank you for being brief, to the point and we will
do our best. Give to this gentleman.
Mr. Alex Kinyua: My name is Alex Kinyua. I invested with Clip Co-operative Shs.1.4
million. I took a loan with Standard and another loan with Harambee Co-operative worth 1
million shillings. I also invested with Business Community – that is, Business Co-operative
Shs.450,000/-.
Amb. John Mukuriah: Is that the same as Kenya Business?
Report of the Taskforce on Pyramid Schemes
257
Mr. Alex Kinyua: Yes, it was called Business (?) Co-operative. Clip and Business Co-
operative were using the word ‘co-operative’. They were saying they were registered by
Ministry of Co-operative and that is why may be (inaudible) with them.
Amb. John Mukuriah: How much?
Mr. Alex Kinyua: There I invested Shs.250,000/- and DECI – Shs.96,000/-. That comes to
two point something. Okay, I am still paying that loan – I will finish paying my loan in 2014 if
at all I will be alive. So, what I want to say is that, we were investing our money to co-
operataive and not Commercial bank, Co-operative bank, whatever and in Kenya I know you
cannot open an account in any bank without taking photocopy of your ID card, the directors’
name, whatever. So, as a Task Force, because all those pyramids we were taking our money to
the banks; so can you follow up with the banks because we were taking our money there through
bank slips. Can you follow and see who were the account holders of those bank accounts – may
be to help you know all the directors and also go to the Co-operatives they will show you who
were the directors of that Clip Business Co-operative. Me, I do not have faith may be I will get
my money but what I believe, I came with nothing in this world and I will go with nothing. Even
those who took our money, I know they came with nothing and when they die, apart from the
coffin and the clothes they will wear and the food they would have eaten that day, there is
nothing they will take from this world, thank you.
Hon. Francis Nyenze: Thank you and sorry, Alex Kinyua, that is a very big loss and
considering that you will pay that loan up to 2014. Imagine, someone somewhere is driving a
very big car, living in a very big house, his children could be abroad studying and Alex Kinyua is
paying a loan, exposing the family to suffering up to 2014, just because a crooked fella cheated
and (?) themselves and took their money. The same story as you people, retirees, etc.
You take the family money because you have been promised that this money would be
multiplied and everybody wants good things.
So, this Task Force -please believe us; it will deliver. We will try the best we can and you pray
God that we do the right thing without compromise and ignore anybody who is saying the Task
Force will not do A, B, C, D. We are determined. If you look at all of us, we are all senior
Report of the Taskforce on Pyramid Schemes
258
citizens. We have seen it, we have been through life, so we know how it feels and some of us
have lost a lot of money. So, we want this culture of impunity, culture of stealing from poor
Kenyans and exposing them to problems to end. It has to start somewhere and it has to stop.
Someone has to start and stop it and we know this Commission will do exactly that. So, trust us,
instead of doubting us; just judge us after our term of expiry.
We want another person to contribute – anybody who had a similar problem. Give the
microphone to that gentleman.
Mr. Aruma Jonathan: Kitu cha kwanza, jina langu naitwa Aruma Jonathan; ya kwanza,
Committee yenye imechaguliwa kuja kusaidia hawa investors – at least kuchukua muda wenu na
kuja kukaa hapa kusikia views vile tunaumia huko barabarani. Mimi mwenyewe nilikuwa
mfanya kazi wa Telkom Kenya. Hizi vitu zikianza, tulikuwa tu tumelipwa pesa. Mimi umri
wangu kwa sasa nime-attain 40 years plus. Nikon na watoto wadogo sana ambao wako (?)
Nikachukua pesa zangu zote nikaweka Kenya Business Community – Shs.800,000/-.
Nikachukua Shs.250,000/- nikaweka kwa nyinyingine walikuwa kwa nyumba moja hapa View
Park Towers, gorofa ya ishirini Shs250,000/- nikaweka kwa (?) Investment. Nikachukua
peza zingine – kuna nyumba ingine inaitwa – hii nyumba nimemsahau – kwa Circuit Investment
– iko karibu na Cianda – karibu na City Market Shs.120,000/- nikaweka kwa Circuit Investment.
Haya basi mimi nikaona nitapata donge nono, nikaenda uko ingine ilikuwa inaitwa Amiti
Prestige, Westlands. Jamani wacha nimwambie kitu cha ajabu, Amiti Prestige ulikuwa unabeba
pesa kwa mfuko ukiwapelekea ukiona, nikawapatia Shs100,000. Kufika huko napata hata mtu
amebeba milioni tano – hili jambo ilikuwa za kushangaza, hatujui ilikuwa ni pepo ama ilikuwa
ni nini maanake ukiona, unaona huyu ni mdogo lakini uko na mtu mwengine senior pale, hata
ukimwona na yeye, hutaamini. Unajiuliza, ikiwa tu niko na Shs.100,000/- kwa nini nijimpee na
kuna mtu amepeleka milioni tatu. Halafu, kutoka pale mimi nikaenda Jitegemee, nikawapatia
Shs.40,000/-. Kuna ingine ilikuwa Kibera called Family In Need (Fino), nikawapatia
Shs.40,000/- Kuna ingine inaitwa Smart, niliwapatia Shs.40,000/-. Tuko na ingine inaitwa
Cuiben nikawapatia Shs.10,000/- . Tuko na nyingine ilikuwa Utalii House, niliwapatia kama
Shs.30,000/-.
Hon. Francis Nyenze: Ya Utalii ilikuwa inaitwa?
Report of the Taskforce on Pyramid Schemes
259
Mr. Aruma Jonathan: Ilikuwa Golden Life Concept. Kuko na ingine ilikuwa Ufundi Co-
operative, walikuwa wanaitwa Global – hao ni kama Shs.20,000/-. Na zingine ziko hapa siwezi
kumaliza. Kwa nyumba niko na receipts, tukihesabu ni zaidi ya 50. Hizi risiti
(inaudible)
Jameni, wakati tulisikia Task Force imekuja, tulisikia kama tuna-breathe kwa sababu tuliona
tutaletea watu makilio vile tunafanya hapa njiani kwa (?) na tunaomba mtusaidie.
Tunalia; wengine kwa nyumba hata ukitoka, unatoka kama mwizi
(inaudible) So, hiyo tu ndio nilisema mpaka nifike kwa hii
Kamati ni (speaker gets emotional and inaudible)
Hon. Francis Nyenze: Thank you Huruma Jonathan. Did you lose all this money; you never
got payment either in interest or refund? You lost everything.
Mr. Aruma Jonathan: I lost everything. (speaker off microphone) Fino
nikapata moja na nikaona imekuwa (inaudible) Nikaongezea. So,
at least nilikula kula mwezi moja, ingine mwezi mbili halafu ikaja zote zikapotea.
Hon. Francis Nyenze: So, in total ume-calculate umepoteza like milioni moja na kitu, sivyo?
Pole sana Aruma Johanathan, tumesikia. You have left your documents with our officers here?
Mr. Aruma Jonathan: (inaudible – speaking off microphone)
Hon. Francis Nyenze: So, tomorrow you bring those documents – or later today because that is
what matters. We also will go to Eldoret – you can check the date with Roseline – so that you go
back there and give us the document then you come to Eldoret; but check with Roseline.
Mr. Aruma Jonathan: (inaudible)
Hon. Francis Nyenze: Okay, utatupatia tena. Sorry, Aruma Jonathan for that loss and
considering that you had retired. It is like – Bwana Vice Chairman – it is like these pyramid
schemes were targeting Telkom Kenya employees and retirees. From yesterday we have heard a
Report of the Taskforce on Pyramid Schemes
260
lot of that – very organized. We would like to hear from any other person who lost their money.
Patia mama.
Ms. Tabitha Waweru: Ninasalimu kila mtu, habari zenu? Mimi ninaitwa Tabitha Waweru na
nili-invest na Clip – Shs200,000/- I only got interest for about two months at the rate of 10%
then after that the problem cropped up. Sasa hiyo pesa imepotea. Kuna kitu mimi nataka ku--
tunaona ni vizuri mumekuja kunfanya tutoe out our problems. Lakini, msione kama – like the
gentleman who talked – sisi tuko na maswali mingi kwa sababu tumepitia mengi since that time
our money got lost. Tumepita kwa lawyer- tukafikiria lawyers are people to help people in this
country so we are on the right track! Tuli (inaudible)
Because we were with three officers and we shall be able to recover our money. Tumepitia
kwa wale watu walikuwa wenzetu-- sikumbuki walikuwa-- wamekusanyika pamoja. We have
not lost anything, maana kama ni mia tu tulilipa, that is not anything to me, lakini kwenda na
kurudi mahali tunatoka. Wakati mnasikia tunawauliza maswali, bear us, we are just asking good
questions because hii kitu tunajadiliana, na ni nyinyi mtatupatia hope na hiyo hope ndio
(inaudible)
Kwa sababu we do not know who is who. Kwa hivyo, tunawauliza, kwa sababu sasa tumesikia
na tumekuja kwenu na tumewaona for the first time lakini tuwe watu tumewafahamu. Hata
kutuwambia wale wamewatuma au kitu kama hivyo, we will feel happy.
Kuna kitu kingine nilikuwa nataka ku-comment. Mimi nilikaa na nilikuwa nimesikia about
pyramid schemes is illegal or something like that. Lakini mimi nilikuwa ninajiuliza kama mwana
Kenya, are they illegal and they are operating openly offices in Nairobi? The government knows
it and it is the work of the government to protect us. Now which is which, because
professionally as a teacher, there is a (inaudible)
(inaudible)
I strongly want to say, I did not invest suitably because there were many questions I asked
myself. Mkumbuke pia walikuja-- like now saying, they were-- . So, I was asking they have
asked for a long time na ni kundi ingine nasikia – although me I was in the rural na hawa wame-
operate for a long time na hawa ni watu wanajishikanisha na PIN. Ukikumbuka mimi nilizaliwa
around (?) lakini when I grew up around mid 50 or thereabouts, mama alikuwa
ananiambia vile alikuwa anakatazwa kuenda masomo akiwa (inaudible)
Report of the Taskforce on Pyramid Schemes
261
kwasababu hakukuwa anaaminiwa kwenda kwa wazungu ni wanaume. I think we have all gone
through that. Wakakatzwa, wasichana hawakusoma sana.
I wanted to say, me I took some (inaudible) na nikaona nimesikia watu
wame-invest na wame-benefitted, I think I have stayed long and I speak to you I am in the wrong
way kwa sababu watu wamefaidika na mimi sijafaidika – plus, with my small salary, I had two
children in the university – niseme watutu. One left, two nilikuwa nime w- sponsor. My husband
had retired kitu kama three years before or four years before. Whatever we got, nilipeleka.
Kama my son was in Nairobi here na kila siku-- there was nothing in the camp – every week
you have to (?) that child. Sio kama sasa kuna mahali anaweza kupewa pocket money or
something like. Hapo tulihadharikia sana. The pocket money we gave she was being asked for-
-
Hon. Francis Nyenze: Tabitha, kwa sababu umeeleza vile ulipoteza Shs200,000/-
Ms. Tabitha Waweru: In short nilikuwa nataka kusema, tulijaribu ku-invest kwa sababu
hakuna mahali ingine – ukiwa na pesa kidogo, ungepata siku ya -- tulikuwa na reason. Na kwa
hivyo, tunawaomba, kama mnaweza kututetea, we shall pray for you. Please, muangalie ile
mambo ilifanya tufanye nini-- hata kama tuko na makosa, we also feel the three other parties--
Hon. Francis Nyenze: Thank you, Tabitha Waweru. Wale watu wali-invest, sio ati walikuwa
wajinga. Kitu ikipitia kwa kanisa, yule Pastor wako akuambie ni kizuri kama hiyo Clip, hata sisi
wengine tuliingia kwa sababu kitu ikipitia kwa kanisa, you believe it. Unashtukia tu wakati
unakuta hakuna kitu unapata. So, us as Commissioners and you as Investors, we cannot blame
each other ati, kwa nini mliweka pesa huko, nobody knows. And as Tabitha says, unless you
invest, utakaa pale pale tu; ama namna gani? Unajua tuli-invest tukapoteza lakini kama
ingekuwa successful, tungekuwa mbele sana, ama namna gani. So, without wasting time,
tunataka sasa mtu mwingine atuambie story yake. Na vile mama amesema, hata akiongea hivyo,
anapata hope, ana-share na wengine, anaona si yeye pekee yake; tulienda the same route. Kwa
hivyo, tunataka mtu yule anataka ku-contribute, ainue mkono tumpatie nafasi. Tabitha
unasema?
Report of the Taskforce on Pyramid Schemes
262
Ms. Tabitha Waweru: Ninataka kuambiwa ati, tumesikia watu wana-comment wakisema,
tulikuwa tumekatazwa; unajua hiyo sasa inafanya morale isiwe vizuri sana.
Hon. Francis Nyenze: Msikufe moyo; hamukukatazwa. Vile Central Bank ilifanya, wakati ili-
realize kuna pyramid schemes zinakula pesa, iliandikia banks hizi zingine – hiyo ndiyo ina-
control – wakawambia kuna hizi vitu inaitwa pyramid schemes. Muangalie, mkiona an account
that looks funny mtuambie na free those accounts. Kwa hivyo, mtu akisema investors walifanya
makosa, ama waliambiwa wasi-invest, hiyo ni uongo yake. Let us hear from another person who
has not contributed. Kuna watu nyuma huko? Kuna mtu anataka tusikie story yake – the lady in
front.
Ms. Hellen Wanjiku: Nina wasalimu nyinyi wote nakuambia nimeshukuru. Kwa hiyo muda
tuliweka pesa kwa pyramids tumekaa kama miaka mbili na tumekuja kusikia kuna watu
wanatufikiria. Bado hiyo maneno haijakufa, bado hiyo maneno haijasahulika. Sasa mimi
ningependa kusema vile nili-invest. Wakati nilisikia ya kwanza ilikuwa hii pyramid inaitwa
DECI, na ilikuja tu kama (?)
Amb. John Mukuriah: Jina lako?
Ms. Hellen Wanjiku: Jina langu ni Hellen Wanjiku. Wakati nisikia ya kwanza, nilisikia na
watu. Mama mwingine ali (?) akaniambia kuna pahali watu wana-invest pesa na
kwanza kama hujaenda, unaenda seminar. Sasa nikawa naenda seminars huko Satellite, ndani
kabisa, sikumbuki inaitwaje. Nikaenda safari mbili na kuna ingine nilienda hapa town. Sasa
vile huyo mtu alikuwa ana (?) yenye mwenyewe ndiyo alikuwa anakuja. Vile alikuwa
anatuelezea--
(Interruption as power goes out)
Ms. Hellen Wanjiku: Watu walikuwa wanasema kuna ile inalipa haraka na kuna ingine
hailipi haraka. Wakati loan yangu ilitokea ilikuwa hiyo mwezi wa tatu. Nikagawanyisha ingine
kwa DECI, ingine kwa pyramid mingi, mingi. Wakati mimi nilikuwa nilipue, sijui kama ni bahati
mbaya ama sijui ni Mungu au nini, hakuna kitu nilipata – nikawa sasa nikienda DECI, tulikuwa
tunalipia kwa account, tunapewa account ya Co-operative Bank, Standard Bank. Ukienda
Report of the Taskforce on Pyramid Schemes
263
wakati risiti yako imekuwa due to kulipua wanakuwa na mfurugano huko ndani wanasema pale
walikuwa na account kwenda ku-withdraw pesa, wame-withdraw kidogo. So, mnapewa namba
kidogo, na kama hujapata namba, mnaambiwa muende mrudi kesho. Sasa kama mfanya kazi
huwezi pata ruhusu kila siku. Ukienda hii wiki, hata hiyo wiki ingine ni bahat kwenda. Sasa,
DECI ikaenda hivyo, si kulipwa. Wakati sasa walifunga account zote wakasema National bank
imewakataza, Standard imewakataa, tukaambiwa wenye hawajalipwa tupeane ma-receipt –
tutoe photocopy, tubaki na photocopy, tuwapee original. Hvyo ndiyo tulifanya – tupeane
original ubaki na photocopy, halafu uende Post Bank watufungulie account yako kwa hizo
receipts halafu pesa yako watakuwekea kwa Post Bank. Mimi nilifungua Post Bank na
nikapeana hiyo account na nikapeana risit zangu nilibaki na photocopies; mpaka wa leo niko na
photocopies. Hawakuwahi kutuwekea hizo pesa mpaka wa leo. Zile pyramids zingine ukienda
unapata iko na shida, imefungwa hivyo, hivyo. Mimi hakuna kitu nilipata, na nilikuwa nimeweka
kwa pyramids nyingi kabisa. Pesa zangu za loan mpaka wa leo.
(inaudible question from Members’ Table)
Ms. Hellen Wanjiku: Sijui kama naweza kumbukua lakini niko na risiti ya 10,000/-, na niko na
risiti ya Shs.3,000/-, niko na risiti na Shs.6,400/- - walikuwa wanaitwa (?) Sijui
umejisimamia kiti yako. Hizo Shs.6,400/- niko na risiti kama nne. Shs.10,000/- niko na risiti
moja, Shs.3,000/- risiti moja, Shs.9,000/- risiti moja, Shs.52,000/- risiti moja.
(inaudible question from Members’ Table)
Ms. Hellen Wanjiku: Shs.6,400/- walikuwa wanakuwa wanaandikia (?) kuna lugha
walikuwa wanatumia ile siwezi kukumbuka – ni kitu ingine wameandika (?)
Ms. Emily Mwachoo: Kama ni mambo ya pesa, patia mtu photocopy, lakini
(inaudible)
(Because of power black out, some views from the speaker were not captured in record)
Ms. Hellen Wanjiku: Kitu ningetaka sasa kuongezea kwa hiyo, kwa upande wangu kitu
ilinifanya nipeane risiti zangu zote, tulikuwa wengi wenye walipeana wakati huo. Unaona sasa
Report of the Taskforce on Pyramid Schemes
264
kuna ingine nilikuwa due kulipwa mwezi wa pili na hiyo wa tatu. Mwezi wa nne ndio tukawa na
shida sana na ndio walituambia tufungue account kwa Post Bank. Sasa kufungua account kwa
Post Bank halafu waandike account yako hapo, kwa hivyo, risiti originals, ndio waweze ku-
process pesa zako wakuwekee kwa account. Sasa tukaona ni kitu genuine juu hakuna ingine
ilikuwa imeanguka before hiyo DECI – wakati DECI ilianguka ndio hizi zingine zote zikafuata.
Sasa ndio sababu sina risiti ya DECI, niko tu na risiti mbili originals zenye hazikuwa due.
Hon. Francis Nyenze: (Inaudible – speaking off mic)
Ms. Hellen Wanjiku: I have the photocopies and two original receipts.
Hon. Francis Nyenze: Umepeana receipts?
Ms. Hellen Wanjiku: Photocopies nimepeana. Sasa hizo pyramids zingine zote niko na
originals, apart from naye-- kuna ingine ilikuwa inaitwa FINO (Family In Need Organization)
na hiyo tulikuwa tunaambiwa ni NGO, ikakuja na upande wa kanisa, ikakuja na wenye
hawajiwezi – mtu angependa kufaidika. Pia wakati naye walifika kuptotea, walikuwa na shida
ya kulipa. Sasa wakatuambia pia tufungue account na Post Bank. Tukafungua na
tukawapelekea. Na kama unalipwa next week, unapeleka original next week, ndio pesa zako
ziwe zimekuwa processed kwa account. Sasa wakati nilienda the following week, naye hivo,
hivo ikawa wameenda, wamefunga. Anaandika notice hapo, next week tutakuwa date fulani, na
ukienda hawako ama ukienda wamefunga, wako ndani. Mlango ni ya grill unaonea huko
wanakuongelesha kwa grill. Wanasema wako na problem kidogo, wata-solve immediately na
pesa yako utapata kwa account. Sasa mtu alikuwa anaambiwa, uko na account kwa Post Bank,
na risiti zako ulitupea, eh, enda kwa Post Bank. Ukienda kwa account, hakuna kitu. Sasa akawa
amepoteza pesa zake hivyo. Lakini mimi ningependa kuwaomba vile mmejitolea kutusaidia kwa
sababu nyinyi mnaweza jua sheria, mtusaidie tafadhali kwasababu, kama mimi, loan ya Co-
operative sijalipa – nilikuwa nilipe five years. Hiyo pesa yote nilimwaga hivyo, bado
ninaendelea kulipa. Mimi ningewaomba, tafadhali, tuko na shida kabisa. Tulijipeleka, ndiyo,
lakini tuko na shida kabisa. Kama mimi ni single parent, niko na watoto na mpaka
niwasomeshe, sitasema nilitupa pesa. Lakini ninajitahidi kabisa niwasomeshe, niwapee chakula
– yaani kitu yote inafanywa na mzazi na nifanye kazi, siwezi kosa kwenda kazi. Lakini, unaona
Report of the Taskforce on Pyramid Schemes
265
mtu akitembea tu, lakini tuko na shida kabisa. Saa zingine unarudi kwa nyumba, hata kama ni
end month, unaangalia pay slip, haina kitu; na school fees ya watoto inakungojea.
So, ningewaomba, pale mnaona tu mtafika kwa serikali mwaombe wasaidie wenye tulihadhiriwa,
tafadhali mtufikishe huko. Sisi tukiwa pekee yetu hatuwezi, lakini tunawaomba mtatusaidia
kabisa na mtaweza.
Hon. Francis Nyenze: Mungu atatusaida na Mungu atatuendesha. Sasa tungetaka kusikia
kwa wawili – experiences tu na ninajua tutafika mahali. We can have contributions from any
other member alikuwa na experience. We are sharing. Make sure that all documents, the
transactions, you have the photocopies so that, anything we get, (inaudible)
to distribute the little that we may get. The documents are very important, even more than the
contributions. So, any other person who wants to share their story with us, yes, madam?
Ms. Grace Ndung’u: I want to talk about Family In Need Organization, it pains me a lot
because the owner, who is Ronald Wanyoike has been my neighbor and I have always known
him as a good Christian and when he approached me, I joined because I knew him. He moved
from South ‘C’, he has rented out his house now. I feel pain knowing that he went with people’s
money and yet he is getting rent from that house.
Members Table: (inaudible)
Ms. Grace Ndung’u: Yes, Leonard Wanyoike.
Members’ Table: (inaudible)
Ms. Grace Ndungu: You know these ones went into hiding but I know the house.
Members’ Table: (inaudible)
Ms. Grace Ndung’u: I know his own house where he was living before.
Hon. Francis Nyenze: Okay, then what is your contact, because we can follow that.
Report of the Taskforce on Pyramid Schemes
266
Ms. Grace Ndung’u: I can even say the house number now because I know it. He is Ronald
Wanyoike and he was the Manager – the key person in FINO. He stays in Reality Estate,
Mugoya near MOW Sports Club and his house is house number 86. Right now it is rented to a
Nigerian.
Members’ Table: It is now rented to a Nigerian.
Ms. Grace Ndung’u: Yes.
Hon. Francis Nyenze: (inaudible)
Ms. Grace Ndung’u: It is now rented to a Nigerian. Reality is next to Ministry of Works.
People normally call it Mugoya but the official name is Reality.
Hon. Francis Nyenze: So, (inaudible) and you know the house.
Ms. Grace Ndung’u: He is my neighbor; I am talking of something I know, not
something that I-- I even joined his organization because of how I knew him as a good person
and in the name of helping the poor people.
Hon. Francis Nyenze: So, now you can give us the telephone number so that (inaudible)
Ms. Grace Ndung’u: Mine?
Hon. Francis Nyenze: Yes. You are Tabitha Waweru?
Ms. Grace Ndung’u: No, I am not Tabitha Waweru; I just commented because somebody
talked about FINO – that is why it came to my mind.
Hon. Francis Nyenze: You are one Ann (?)
Ms. Grace Ndung’u: I am Grace Ndung’u.
Report of the Taskforce on Pyramid Schemes
267
Hon. Francis Nyenze: Grace Wambui.
Ms. Grace Ndung’u: Yes.
Hon. Francis Nyenze: Okay. Now, you give us your number because, we want to follow up
this.
Ms. Grace Ndung’u: Yes, I will do. And then, somebody like these advocates, we were
paying to the advocates, like Mugambi Advocates, who was the advocate of – is it Circuit? Or
whatever; those are people who are already known. The advocate for Sasanet who was called
Mwangi – may be you know those names, anyway. You have received those things, so, you
have got a clue of it. Otherwise, thank you.
Hon. Francis Nyenze: Thank you very much. Let us hear from any other person, yes that
gentleman.
Mr. Joram Lunjalu: I just wanted to ask a few questions because I was just told to come.
Hon. Francis Nyenze: Start with your name.
Mr. Joram Lunjalu: My name is Lunjalu Joram.
Hon. Francis Nyenze: Have you registered, have you invested?
Mr. Joram Lunjalu: Yes.
Hon. Francis Nyenze: (inaudible)
Mr. Joram Lunjalu: Yes.
Hon. Francis Nyenze: Where are they?
Mr. Joram Lunjalu: I have already given them.
Report of the Taskforce on Pyramid Schemes
268
Hon. Francis Nyenze: Where are the documents? You have given those photocopies?
(inaudible)
Mr. Joram Lunjalu: Those are at home, I just came with photocopies.
Hon. Francis Nyenze: If you came with your documents and you have given them-- have you
given your documents there?
Mr. Joram Lunjalu: Yes.
Hon. Francis Nyenze: Your name is?
Mr. Joram Lunjalu: Lunjalu.
Hon. Francis Nyenze: Okay, ask your question.
Mr. Joram Lunjalu: Well, I just wanted to find out, you are a government Commission, from
which Ministry, what are your terms of operations? Those are the questions I have.
Hon. Francis Nyenze: Ah, good. Thank you very much. We are a government appointed
Task Force and our Terms of Reference are:
1. Establish the promoters of these pyramid schemes, how many they were, how many
pyramid schemes they set, how much they collected, where they put the money.
a) Establish the number of people who were conned out of their money – you
investors.
b) We are also supposed to – after going round and having these public hearings – to
recommend to the government what should be done to recover this money.
c) We are also supposed to come up with suggestions on how these pyramid
schemes do not come again and cheat Kenyans out of their money.
d) We are also supposed to recommend any other action that should be taken. But
the primary objective of the Task Force is to try and get the promoters and make
Report of the Taskforce on Pyramid Schemes
269
them refund this money. Recommend prosecutions; we follow through the public
hearings and the views and the reports we have taken. We have gone to KACA
(Kenya Anti Corruption) and gotten information; we have gone to Central Bank
and got what we needed. We have gone to many other places – government
bodies. So, we still have information, you are giving us more information. After
all this, we will see whether there is any money in these accounts – how much
there is and we recommend to the government what should be done – mechanism
on how it should be refunded to you.
2 The perpetrators of this act of robbing poor Kenyans – they are known. If we say
DECI, you know the people behind it and we will not hide – whether he is a
ministry, whether he is a Permanent Secretary, whether it is a business man; ours
is to say straight, this is the person who did this and then put the information to
the officials.
So, our Terms of Reference thus and it is a government Task Force because of the outcry that we
had – in response to your problems and we hope to deliver. We want to do the best. So, I hope I
have answered you?
Mr. Joram Lunjalu: Indeed you have. (inaudible) I
believe as a government regulating and controlling activities and operations.
So, if you are going to get these people – I think the only way out is to ensure that this money
that was obtained from us – may be stupid or ignorant – is brought back. That is one way of
trying to deal with impunity which you know as I know, is rampant and possibly nowadays,
acceptable in Kenya. I am requesting that the question of prosecution should actually not come
in--
Hon. Francis Nyenze: Okay, we have heard. As the (inaudible)
Money was deposited – some of you were depositing money through come accounts -
(inaudible) Otherwise, why would there be Central
Bank? To regulate problems, is it not? So, we want to follow these accounts and know how the
money flowed but the main question is, we should never recommend prosecution for these guys
to be arrested because it will not solve the problems. We said we would try the victims first to
Report of the Taskforce on Pyramid Schemes
270
see whether we can recommend attaching of their property. But, let me just go through this so
that you understand our Terms of Reference.
a) Our Terms of Reference are to establish the number and the nature of pyramids and
other related schemes and the identities of the directors which are in pyramids.
b) To inquire into, and investigate the amount and the whereabouts of the funds invested
into pyramids and other related schemes – that is, the amounts and whereabouts.
c) To formulate and recommend strategies to apprehend operators of pyramids and other
related schemes with a view of recommending prosecution. Si umesikia? So, these
are the kinds of things that we should be doing and then;
d) To recommend mechanism of recovering your funds invested, with a view of
recommending restitution of the money or property recovered, if any, with the
investors. Yaani, tukipata hizo nyumba, zinauzwa, mnarudishiwa. So, you get it?
e) To make recommendations that may prohibit illegal deposit taking by pyramids and
other related schemes.
f) To advise the recommend regulations to guide financial institutions in dealing with
pyramids and other related schemes. Umesikia sasa?
So, those are the Terms of Reference. Any other member who wants to contribute? I think we
have given you enough time.
Mr. Joram Lunjalu: Many a times we have seen Commissions established, recommendations
made, nothing done. If there is going to be nothing done – I am not saying there is going to be
nothing done, I am just asking – if this Commission is going to come out with recommendations
and hand over to the government – because we are also aware, I mean we have been informed,
almost established – that some ministers were also involved. And of course their influence
cannot be just pushed aside. Now, if the recommendations that you make are not going to be
taken seriously be the government for the re-embursements of the funds to the depositors, what
do you think we should do?
Hon. Francis Nyenze: (inaudible)
Ms. Emily Mwachoo: Ningesema hivi, tuko hapa kusaidiana. Hata tumesema wengi wetu
tumekuwa affected. So that yoyote ako na information, ambaye anajua wale directors, wale
Report of the Taskforce on Pyramid Schemes
271
promoters, information kama wako na nyumba ama property yoyote, hizo properties alinunua si
ni pesa zenu? Mtu aende kwa Secretariat, akapewe information halafu hiyo itasaidia sana. Si
tuko hapa kusaidiana? (inaudible) Kwa
maana tunajua hawa watu wako pamoja nasi, (inaudible)
kama uko na any information, ni vizuri you tell us everything and we shall act accordingly.
Thank you.
Hon. Francis Nyenze: Thank you, Emily. We want one person now to contribute and then we
will take a break then we come back in the afternoon so that other people can contribute.
Anybody who wants to say something before we break?
(Inaudible)
We are mandated to carry our work for three months – 90 days. So, we will go to the districts,
collect all information and within three months tumalize kazi.
Participant: Ningependa kuliza, kuna information ningekuwa nayo lakini sikubeba pale
niliandika juu sikujua pale nitaulizwa swali ama pale nitaongea. Kuna pyramid ilikuwa inaitwa
Smart na tulifuatilia sana, sana mpaka tukashika mwenyewe na akapelekwa ndani, akawa
anaenda hearing, mwishowe akaachiliwa kabisa. Hiyo kesi ilikuwa under Central Police
Station. Kuna askari kadhaa nilijua wakati huo wa kesi – juu wakati hiyo tulikuwa tunaweka
pesa pia kuna askari nilijua mwenye alikuwa anasindikisha hawa wakifunga wakipeleka pesa.
Wakati nilim-confront, aliniambia yeye hajui walikuwa wanapeleka wapi – juu alikuwa
anawasindikisha mpaka watoke nje ya town kabisa halafu yeye anashukishwa anaenda Central
Police Station. Lakini wakati tulikuwa tunafuatilia kesi – kwa sababu nilienda mpaka
nikaandikisha Statement, kuna askari kadhaa nilijua. Sasa, kuna mmoja aliniambia alienda
mpaka kwa huyo mama alikuwa director wa hiyo pyramid – ilikuwa inaitwa Smart Welfare
Association. Sasa sikufuatilia sana, juu sikujua kuna wakati kutainuka hii maneno ya kuongea.
Lakini kama ningeambiwa ni wapi naweza leta information, naweza fuatilia kutoka Central
Police Station. Majina ya huyo mama siwezi kumbuka – nilikumbuka mawili tu – Grace Nyeri
wa Smart Welfare Association.
Hon. Francis Nyenze: (inaudible)
Report of the Taskforce on Pyramid Schemes
272
Participant: Hiyo namba kuna pahali nimeandika lakini saa hii sikubeba.
Hon. Francis Nyenze: Sasa, we are about to close to take a break and continue at 2 p.m. Is
there any member who wants to share their story on how he lost the money in pyramid scheme,
or we close? Anybody else? We only want the (?) to come in confidence tukuandikishie
ma-ministers wale mnasema unajua and you were informed they had pyramid schemes. You
will leave that information with the Chair and it will not be injurious to you because we will treat
it in a very confidential way. But, record it there, tuambie ni fulani was involved in this scheme
and we will follow it up.
(Members’ Table) Sometimes, some information can be sensitive, it may not be complete,
but it can help to lead to some more information. So, just because you are doing it in confidence,
we will capture that bit and follow it up from there and we will continue with our work. And
should you get information, this Secretariat is situated at 10th Floor. So, you take all the
information here. Ukipata information, unaleta; si lazima kwa mkutano kama hii pekee yake.
Kwasababu, information for us is very important. All that is coming from you, we will (?)
that into the full report and it is important if there is anything, (inaudible)
You also know that these people invested, people made investments in the name of their wives,
their children and all that information is very important because (?)
Alikuwa na nyumba hapa, anaishi mahali ingine sasa. (inaudible)
all that bit is very important for us to capture. Kwa hivyo, tutasaidiana, please. Please go, get
information. Mko na common problem (inaudible)
and do not be distracted. This is the only Task Force recognized by the government. At the end
of the day, the (inaudible) tafadhali tuwe na
information ya kutosha tupelekeni kwa serikali.
Hon. Francis Nyenze: Kuna mtu mwingine kama sijafunga?
Mr. Silvester Otieno: I invested around Shs.20,000/-.
Hon. Francis Nyenze: Anza na jina.
Report of the Taskforce on Pyramid Schemes
273
Mr. Silvester Otieno: My name is Silvester Otieno. DECI it was obvious it was for George
Donde. George Donde alikuwa na kesi hata huko Busia. Hii DECI, ukienda kwa registry ya
Registrar for Societies or company, I think you can go into that and get whoever was the--
George alikuja hata kwa media akiongea hii maneno – sijui you seed and plant na unapata
matokeo then you re-plant na unapata. Nafikiri it is a straightforward case. For my Shs.20,000/-
if I have to ask anybody, then I will go to George Donde and ask him to refund me my
Shs.20,000/-.
Hon. Francis Nyenze: Thank you, Silvester Otieno for that --
Mr. Silvester Otieno: I have recorded my--
Hon. Francis Nyenze: You have given--
Mr. Silvester Otieno: I even looked for his General Manager – nafikiri nilipoteza namba yake.
Because I am told there is a General Manager for that Company; nilijaribu kumpigia simu,
simpati. I was only looking for George Donde nimulize, if you can get my Shs. 20,000/-, give
me back my Shs.20,000/-.
Ms. Emily Mwachoo: Who was the General Manager?
Mr. Silverster Otieno: General Manager ilikuwa somebody Ogembo. I lost his contact.
Hon. Francis Nyenze: Thank you Silvester for being bold. (inaudible)
Mr. Silvester Otieno: So, if you are to ask for someoby in DECI, it is George Donde.
Hon. Francis Nyenze: (inaudible)
Ms. Cecilia Nyambura: Mimi pia nili-invest kwa DECI. Nili-invest Shs.450,000/- lakini
nikagawanyisha mara mbili ndivyo hiyo pesa isikae sana. My husband akapeana Shs.200,000/-;
yeye anaitwa Paul Mbugua na mimi Shs.250,000/- na tuka-invest kwa center ilikuwa Kitui
kwasababu alikuwa amesema huko hakuna watu wengi kulingana na yule alikuwa ametu-
Report of the Taskforce on Pyramid Schemes
274
introduce kwa hiyo scheme. Sasa vile tuliambiwa ilifirikisha, tulijaribu kufuata sana na nikajua
huyo George Donde ndiyo mwenye hiyo DECI na tukajua lawyer wake ni huyu anaitwa PLO
Lumumba. Nikamzidi mpaka kwa ofisi yake once. Hata Donde alikuwa ana (?) tu huko.
Lakini privately, kitu kama ofisi, alikuwa anaenda kum (?)
Sasa tunaona hawa ni watu. Unajua kama unasimamiwa na mtu kama PLO, na ni mtu tunajua
ana intergrity, hungefikiria pesa yako kama hiyo inaweza potea. So, we are just asking kama
serikali inaweka ikatusaidia. We believe hiyo pesa kuna mahali inaweza tu kuwa. Hivo tu ndivo
ningependa kusema.
Hon. Francis Nyenze: Thank you, Cecilia Nyambura. That is good piece of information, that
you know the promoter and you also know the lawyer. Any other person – ili tusiwafungie.
Tulikuwa tunataka kufunga lakini tumeona new people who have just arrived, wanaweza kuwa
na story, wanaweza ku-share na sisi, tuweke kwa record, jina yako, ulitoa ngapi kwa which
scheme na ulipata ama ulipoteza? Anybody anataka kusema kabla sijafunga. Okay, ikiwa
hakuna mtu, tutaomba halafu tuta-break, halafu at 2 p.m., tunaanza tena. Ni mimi ama
Commissioners, ama nyinyi, nani ataomba, mmoja wenu? Shukuru Mungu kwa kazi ametupatia
pamoja. Na muendelee na registration hapo nje, kila mtu akuje na makaratasi yake, aweke. So,
wacha tusimame tuombe.
(Closing prayer by Hon. Francis Nyenze – Chair)
Thank you Lord, we come before you to thank you for seeing us through this session where
Investors have shared with us their experiences. Thank you for taking us through. We pray that
you console them, you give them hope, you give the Commissioners energy to follow this money
and bring the perpetrators to book and above all else Lord, to recover any money so that we can
give to these suffering Investors. Lord, reign over us and let your will be done. In Jesus’ name
we pray, Amen.
Hearing adjourned at 12.21 p.m. for lunch break.
Hearing re-convened at 2.00 p.m.
Report of the Taskforce on Pyramid Schemes
275
Hon. Francis Nyenze: Good afternoon, everybody.
All: Good afternoon.
Hon. Francis Nyenze: Ningewauliza kwa heshima wale wameketi huko nyuma wakaribie hizi
viti za mbele, so that we communicate. Tupatiane joto kidogo. Those ones seated very far, come
and take these front seats, itakuwa vizuri kwetu. Tuko karibu kuanza. Tunawewa kuanza na
tunaanza na maombi. We will ask one of you atupeane kwa Mungu ili tuwe na kikao chema.
One of you – volunteer, thank you very much.
(Prayer by a Participant)
Hebu tuombe, halleluya! Baba katika jina la Yesu Kristo, tunakuja mbele yako Mfalme wa
Wafalme tukiwa tumejinyekea chini ya mkono wako ili Baba upate kutubariki na kutuinua, katika
jina la Yesu Kristo. Jambo lolote ambalo tutakalo zungumza pahali hapa, eh Mungu wa rehema
tumeikabidhi mkononi mwako ee Baba ili mapenzi yako yapate kutendeka, katika jina la Yesu
Kristo. Ikiwa kuna jambo ambalo linaweza kusimama kinyume ya mapenzi yako Mungu,
tunaikataa na tunaikemea, katika jina la Yesu Kristo. Tunajiweka mkononi mwako ili mapenzi
yako yapate kutendeka, katika jina la Yesu Kristo. Asante Mungu, maanake utakuwa pamoja
nasi, katika jina la Yesu Kristo, Baba tunaomba na kushukuru, Amen.
Hon. Francis Nyenze: Thank you very much for that powerful prayer. Sasa tunaanza
mkutano wetu na tumewashukuru kwa kufika. This afternoon you have come early and we do
not want to keep you here because tunajua mko na business ingine mahali na wengine watasafiri
waende mbali. So, we do not want to keep you here. Tunataka tuingie kwa business, tumalize,
tuwa-release muende zenu. The way we started, wewe tukikupatia nafasi yak u-contribute
utatuambia jina lako. Kwanza ni jina, then the pyramid scheme you invested in, amount ile uli-
invest, vile walikuahidi watakulipa, that is interest and at what percentage, whether ulifaidika or
you lost money, just that, because the other ones we have the documents – but for recording. We
are also recording. Tunataka tusikie as many people as possible. This is a public hearing. Saa
ile unazungumza, you are helping so many other people kwasababu nyinyi kama sisi tulipoteza.
Hii pyramid scheme haikuwa na mtu mwerevu, kwasababu ingine ilipitia makanisa, ingine very
trusted friends na ingine our wives walikuja wakatuambia; niliweka na ikazaa, unaenda
Report of the Taskforce on Pyramid Schemes
276
unakopa, unaweka. So, all of us lost. Mnatuambia story zenu hata sisi tutawaambia zetu. Kwa
hivyo, wewe ukiseimama hapa, ili as many people wapate chance wa kuongea na kuambia wale
wengine what happened so that we record it, do not waste time. Jina, na unasema pyramid
scheme, pesa ile uliweka huko, ulipoteza ama ulifaidika, na hiyo itatusaidia.
Hii Task Force was formed by the government kwasababu ya outcry – watu waliteseka sana,
wakauza mali yao, wakakopa bengi, wakafanya mambo mengi. So, this Task Force was formed
kwasababi mliumia na mkapata shida sana. Na our Terms of Reference ni kwamba:
a) We are to establish the number and the nature of pyramids schemes.
b) to enquire and investigate the amount and whereabouts of the funds zile mliwapatia.
c) to formulate and recommend strategies yak u-apprehend the operators of these
pyramid schemes.
d) to recommend mechanism for recovery of that money with the view of
recommending restitution – yaani kuwarudishia the money or the property recovered.
Kwa hivyo hata ukisimama hapa na unajua uliingia either ni DECI na unajua
director wake – ata ikiwa ni director moja, twambie. Na ikiwa unajua property yake
mahali iko, because that is what we want to recommend for attachment, tuambie so
that you make our work easier.
e) To make recommendations on the legal measures that may prohibit illegal deposits by
pyramids and other related schemes. Tunaambiwa hata sasa kunaweza kuwa na
pyramid schemes – unajua zina (?); zingine zinapitia hivi, zingine zina pitia hivi.
Kwa hivyo, hii ni to recommend on how to see them early and stop them.
Kwa hivyo, those are our Terms of Reference na tunaamini ya kwamba Mungu atatusaidia at
least, to reduce the suffering that you have undergone. We are not saying that utapata pesa yako
yote; kwasababu hii pesa ili (?) mahali. Lakini, Mungu anaweza saidia at least, that
person who took a loan or sold the family property apate angalau, kiasi fulani ya hii pesa
because families are suffering. Some people have died. From the time we started listening to
these stories, there are people who have died because of this. Wakapata stress, wengine
wakangojeka, wengine waka-commit suicide, and there are so many divorcees in families, is it
not true? Yaani Mungu akisaidia tu, angalau watu wapate kiasi fulani – that would be our
blessing. Kwa hivyo, mjue sisi we are not your enemies, we are your friends and this is the only
Report of the Taskforce on Pyramid Schemes
277
recognized Task Force recognized by the government. Kwasababu tunafuatilia tusiwe na
doubting Thomas – hata uanze kuuliza, hii si ni Commission kama ile ingine? This is a
Commission with a difference; judge us after three months. Usiende kusema, na hii itafanya
kweli? Trust us and more so, we trust God.
Kwa hivyo, without a lot of talk-- okay, namba 21 to 30 waende hapo wafanye iregistration.
Mnangojewa, wale wengine tutaendelea kusikiza kutoka kwa wao. So, namba 21 to 30 mtoke tu
pole, pole mnangojewa, mpatiane documents – because what is most import ni documents.
Contract yako na DECI, na Clip, na nini; this is the proof. Hata tukipata pesa zile, that is what
we will use to refund. So, your documents are very important; uende pale u-register, utuwachie
photocopy. So we want to hear from the first person and this is the first gentleman who has
raised his hand first; wacha tusikize. Jina, pyramid scheme, amount na matarajio.
Mr. David Waweru: Good afternoon.
Members: Afternoon to you.
Mr. David Waweru: I want to thank you for taking this initiative to assist all of us. I guess we
were all caught up in the same problem. Yangu ni machache kwasababu niliingia kwa nne tu,
pekee yake. Moja ilikuwa Pesa Net--
Hon. Francis Nyenze: Anza na name.
Mr. David Waweru: My names are David Waweru Mbire. Nilikuwa nafanya kazi na Telkom
and we were the first to be targeted by the pyramids. I think it was a calculated move for
Telkom people because people were leaving with all their retirement benefits. Luckily I had not
yet left Telkom at that so, I was not able to put my whole retirement benefits because I did not
get to retire until last year. But, among the four, nilikuwa kwa Pesa Net, DECI, Silver Ventures
na ingine inaitwa Smart – I think those were four. But, among the four – the one I want to
highlight to you is this Silver Ventures. In this one, it was very easy to capture me – in fact
among the money I used, Silver Ventures went with the most which was, I think Shs.50,700 and
something. It was easy to lure me because they actually went into an agreement with the lawyer
and I was just telling my colleague here that, that lawyer is still existing. It was so easy to be
Report of the Taskforce on Pyramid Schemes
278
lured because I went and entered an agreement with the Agency and the Silver Venture. We
entered through an agreement to a lawyer and that lawyer is still existing; they are Baraza Soita
and Sahenza and Saende Advocates. They are at Hazina Towers, 8th Floor, Monrovia Street.
Their post office box is 6425 00100. This one was so calculated because when you start going
into an agreement with a lawyer you are sure you are doing an authentic thing. So, that is what
really captivated me and I was able to go and deliver Shs.50,000/- there. I think this lawyer still
exists and we are to send all these documents – you can see the legal formality we went through.
Mimi nilipo maliza hivi, the next week they were closed. So, that is why it was very interesting.
In total, in all these pyramids, I have actually lost Shs.103,900/- but I needed to highlight that
one because I have a lot of defending documents from the pyramid itself. We entered an
agreement, I signed a registration, I went to the lawyer, they endorsed me and the next week they
closed. Kwa haya machache, naweza wachia--
Amb. John Mukuriah: How much did you lose from Sasanet and how much did you lose from
DECI?
Mr. David Waweru: Sasanet I put-- the first amount was Shs.7,000/- then, Shs.3,500/- and I
have even certificates they were offering people to show that you have joined them. Then Smart,
I had Shs.15,200/- then I took in another Shs.15,000/-, then I put in Shs.10,000/-, all of those that
I was not paid back in Smart. DECI remained with my Shs.6,000/-. Incidentally DECI paid me
in the first three times I intered, but this particular one is the one that was locked out – the
Shs.6,000/-. Then in Ventures, I need to highlight that amount – Shs.50,000/- plus registration,
Shs.50,700/-. That is just for me; I did not come with my wive’s copy of the Identification Card.
So, I canot speak for her right now.
Hon. Francis Nyenze: But, you deposited differently? It is other money, not this one?
Mr. David Waweru: Exactly.
Hon. Francis Nyenze: But you have the documents?
Mr. David Waweru: I have the documents, it is only the ID that I will bring tomorrow.
Report of the Taskforce on Pyramid Schemes
279
Hon. Francis Nyenze: You have done good, register with us. Thank you and sorry for what
happened. Because we are very many, we will be mixing lady, man, to be gender sensitive.
That lady at the back then we come to the Pastor.
Ms. Doris Chebet: Good afternoon members of the Task Force and my colleagues who are also
(?) with me. My name is Doris Kibi Chebet. I invested with two companies; one, Clip
Investment Co-operative Society which I had a lot of trust in because very many friends of mine
had invested with them for many years and as I had retired from the civil service, I got a good
chance of investing and I went there, invested with them in March. I got the first instalment of
the interest in April and May but from there I never got anything else. I invested Kshs.200,000/-
and there I was thinking that I have really done a good job, but I only got interest for two
months. Since then, I have gotten nothing. Mind you, I had just retired from the civil service
and you can imagine how much you get from the civil service when you retire. So, I was
thinking I had a good opportunity. I also invested with Circuit and I also had a lot of trust with
Circuit because we were going through a lawyer – Mugambi and Kariuki Advocates and the
forms were duly signed by the Advocates, so there was no reason why I should have doubted that
something going through a lawyer would backfire the way it did.
(Consultation at Members’ Table)
Hon. Francis Nyenze: Endelea.
Ms. Doris Chebet: With them, I had invested Shs.100,000/- and the interest was good because
it was 16% monthly and they were very faithful with me for the first five months. But, when I
started hearing that this also could be a pyramid, I was just going for the last interest and then I
get my principal, I got something on the door, that they had already closed. They had closed for
sometime and they were to come back after – I think 60 days or something – I cannot remember
what they had said properly. So, with that I lost, with this investment, Shs.300,000/- which for a
retired civil servant is very, very big. That is how it went.
Amb. John Mukuriah: Was it March?
Ms. Doris Chebet: Yes, March 2007.
Report of the Taskforce on Pyramid Schemes
280
Hon. Francis Nyenze: Thank you, Doris Chebet. I am sorry for what happened. It is a story
which is very similar and familiar and which really affects us. Now we give to the man who
prayed for us.
Mr. Thomas Munyi: Thank you very much Committee, members, nimeshukuru sana. Kwa
hivyo yangu ni machache, maanake mimi nime-invest pesa mingi sana.
Member: Jina?
Mr. Thomas Munyi: Kwa majina naitwa Andimiano Munyi Thomas. Nime-invest about
Shs.900,000/-
(Inaudible question from Members’ Table)
Mr. Thomas Munyi: (Inaudible Speaking off microphone) Yote ni Shs.900,000/-.
Kgeep, Shs.240,000/-; Popera – Shs.105,000/-; DECI – Shs.97,600/-; Circuit, hiyo niliweka
principal Shs.100,000/-. Kwa hivyo total yangu ni Shs.1,427,000/- bila interest.
(inaudible question from Members’ Table)
Mr. Thomas Munyi: Tatu tu pekee yake ndio nilikuwa na lawyer, na niko na documents zake
hapa – Mugambi.
Hon. Francis Nyenze: Iko hapa, we are trying to scrutinize them then back to you. But, we
have handed them over there. Utaenda saa hii. Thank you very much. We are giving you the
documents, Adriano. Thank you and sorry for what happened; that is not a small amount of
money. Now, can we have a lady now? We said we would mix; a man and a lady.
Mr. Thomas Nyenze: I am a retiree.
Hon. Francis Nyenze: You retired, and all the pension there? Yes, madam.
Report of the Taskforce on Pyramid Schemes
281
Ms. Hellen Otieno: Thank you Committee that is in charge of this; I am Hellen Otieno. I
invested with Montblanc which later on changed its name to Jitegemee. I put there Shs.90,000/-.
We were told that after four weeks we would be able to have it doubled and just three days to the
end of four weeks somebody told me that their doors are closed. When I went there I found that
it was true. I decided that, that is not going to kill me, let me keep on trusting in the Lord and
that is why I am still living.
I also put in DECI but I do not have the receipts right now so I will come and talk about them
tomorrow.
Another one that really lured me was Clip.
Hon. Francis Nyenze: We want you to tell us how much you put in DECI.
Ms. Hellen Otieno: I had put in Shs.32,000/- for myself and Shs.128,000/- for my son. I will
bring those receipts tomorrow. Then I put in Clip – Shs.200,500/-. Here I was supposed to be
given interest five times and then the sixth month, I would be given the principal. So, I got my
interest in February, March, April and May 2007 and I was supposed to get my last interest in
June then after that I would wait to collect my principal in July, which did not take place. So, I
missed the interest of June and my principal of July – I did not get that one.
The other small one was Global and I had put in Shs.7,500/- and I have some orphans I stay with
for whom I put money in their names because I meant to raise fees for them. So, the total that
was in Global was actually Shs.20,000/-. That is what I spent.
This money was from Mwalimu Co-operative, I had borrowed from Mwalimu Co-operataive. I
was preparing for retirement at the end of 2007 and so I was looking at how I was going to
educate these five orphans that I took from my brother who passed on in 2004 because of (?)
and I was wondering how my nieces and nephews are going to stop schooling because my job
was going to be over. So, I was looking ahead. I was let down, but I thank God that we are still
going on.
Report of the Taskforce on Pyramid Schemes
282
Ms. Emily Mwachoo: A moment, Hellen; we heard in the morning from the members of the
public here that most of the time, when your money was to mature, the original receipts were
taken and you were left with copies, is it the same case with you?
Ms. Hellen Otieno: No. I did not give in my original receipts mainly because I was in the
office, so most of the time I did not get information early, so I still have the originals.
Ms. Emily Mwachoo: So, you have the originals?
Ms. Hellen Otieno: I have my original ones.
Amb. John Mukuriah: So, tell me, what action have you taken? Or what action did you take
when you found these offices were closed, wamechukua pesa yako. What happened? It is
important we also know whether you reported them to police, or what happened?
Ms. Hellen Otieno: When we were going in, we had to be introduced by somebody and the
person had to be a Reverend. The person who introduced me to Clip was Rev. Joyce Mutuku.
She called me the other day and told me that people were going to a lawyer somewhere and
paying Shs.1,000/- for that, but we were yet to meet so that she can take me to that lawyer. So,
actually I have not gone anywhere else apart from checking the offices if there is any good report
that has – may be – come up. I have not done anything else.
Ms. Emily Mwachoo: Which church, please?
Ms. Hellen Otieno: The church I go to?
Ms. Emily Mwachoo: Rev. Mutuku of which church, please? Kanisa gani? Joyce.
Ms. Hellen Otieno: Joyce Mutuku?
Ms. Emily Mwachoo: Yes.
Ms. Hellen Otieno: She is with-- I think it is an Anglican Church but she is at the Lang’ata
Women Anglican Church. She serves at the Lang’ata Women Prisons’ Church. I know she is
the Pastor of that place.
Ms. Emily Mwachoo: Okay, thank you.
Ms. Hellen Otieno: I have her number.
Report of the Taskforce on Pyramid Schemes
283
Hon. Francis Nyenze: Thank you, Hellen, I am sorry and God bless you. We have recorded
and we know we have Hansard as they do in Parliament; so whatever you are saying is being
recorded, so we are not missing anything, we have it. Now, we want to hear from a man,
because we have said we mix. Yes, the gentleman in front.
Mr. William Onyango: Asante sana wakubwa wetu wale ambao wamefika hapa. Yangu ni
machache ambao ningeweza kuwaeleza kwa yale ambao yalinipata-- Jina naitwa William
Osewe Onyango.
Hon. Francis Nyenze: Okay, endelea.
Mr. William Onyango: Nikiendelea kwa haraka, yangu ni; mwaka wa 2007, mwezi wa sita,
nilipokuwa nikitembea kwa barabara ya Duruma Road, hapa Nairobi, nyuma ya River Road
pale – kuna jengo lingine inaitwa Downtown House, nikakuta vijana wako kwa barabara na
wasichana wana posters wanatangaza biashara Shirika moja inaitwa Povera. Nilipo soma hizo
makaratasi yao nikaona ni jambo la maana sababu wanasema ukiweka pesa yako (kiasi ya pesa
ile uko nayo kuanzia 1,000/- mpaka hata milioni moja ukiwa nayo) unapata marudufu, yaani,
zaidi; ukiweka 10,000/-, inapigwa mara tatu, unapata Shs.30,000/- baada ya wiki nne. Mimi
naye nilipo ona hiyo ni jambo la maana sababu hii ni kujaribu kuinua wale watu wa chini, mimi
nikakimbilia hapo. Kuenda hapo, nikaweka shilingi yangu 20,000/- kwa hiyo Sovera nikingojea
sasa shilingi 60,000/- ile nitapata baada ya wiki nne. Nilipoweka pesa zangu hapo, nikangojea
wiki nne hiyo. Ilipokaribia wiki, ilikuwa imebaki siku moja niende nipate pesa, kuenda pale
nikakuta watu wamesanyika, umati mkubwa kama vile tuko hapa, kila mtu anazungumza juu ya
huyo jamaa, haonekani kwa wiki moja nyuma. Nikaanza kuuliza, haonekani, hayuko hapa kwa
ofisi?
Mimi nikatembea tena mzuri, nikiangalia hiyo nyumba vizuri, nikaenda kwa ofisi nikakuta
hakuna mtu! Nikarudi chini tena na sioni hata mtu mimi naweza kuongea naye. Nikajaribu
kutafuta mzee mwingine alikuwa wa kwetu – mtu anaweza kuzungumza Kijaluo kama mimi
nikaweza kuongea nay eye Kijaluo.
Report of the Taskforce on Pyramid Schemes
284
Hon. Francis Nyenze: Sorry, William Osewe. Kwasababu umetuambia Povera uliweka
Shs.20,000/- na ulikuwa upate Shs.60,000/- in four weeks, enda kwa the next because there are
so many people.
Mr. William Onyango: Sasa, nikiwacha hiyo mambo ya Povera; tena ikiwa ninatembea hapa
barabara ya Nairobi, katika barabara hii inaitwa Mfangano Street, naye nikakuta pia vijana
pale wanatembea na makaratasi. Hii ilikuwa Shirika moja ilikuwa inaitwa Prosper Bon; nika
soma maelezo hao. Prosper Bond hii ilikuwa inasema ya kwamba ukiweka kiasi cha pesa
kuanzia Shs.1,000/- kulingana na ile pesa uko nayo kwa mfuko, hiyo naye baada ya wiki moja
inapigwa mara tatu hiyo pesa zako. Mimi naye nikaona hapa ni mzuri pia. Baada ya wiki tatu
nikaweka hapo shilingi Shs.20,000/- nikijua wiki ya nne, mimi naenda kupata Shs.20,000/-. Sasa
nikaweka tarehe 15 mwezi wa sita. Baada ya siku tatu, nikakutana na rafiki moja yangu pia.
Nikasema, kuna mahali moja hapa tukiweka pesa itazaa mzuri; kuenda nay eye kwa hiyo
nyumba, nikakuta nyumba imewekwa notice ya kuwa hawa watu wamehama. Sasa, mimi nguvu
yangu iliishia hapo, nikakuta watu wengine wamesanyika area hiyo tu, wameanza kuzungumza,
hii mtu iko wapi? Nikaanza kujiunga na hawa. Nilipojiunga na hawa, tukaenda mpaka
Kamkunji Police ku-report hilo jambo. Tuka-report wale walikuwa hapo. Tukapatiwa Inspector
moja akaaja, aka (?) hiyo nyumba mahali biashara hiyo ilikuwa inafanywa, naye akaanza ku
(?) tukarudi Kamkunji tena, tukaandika Statement huko Kamkunji. Baadaye, mpaka wa leo,
hatujajua pesa yetu tutapata namna gani. Jamaa alifunga ofisi mpaka wa leo hatujamuona.
Hiyo ndio jambo ilifanyika katika shirika hizi mbili ambao niliweka pesa zangu.
Hon. Francis Nyenze: Wacha tuone kidogo ili tu-- Thank you very much. Tutakupatia;
kabla hujaenda, take back your documents. Sorry for what happened. Tunauliza, wale wako na
phones on, mnaweza switch off ili tuende pamoja? Kwasababu, ikianza kulia, attention inaenda.
So, we give this chance to a lady.
Ms. Orpah Aguso: :Good afternoon everybody?
Members: Good afternoon.
Ms. Orpah Aguso: My names are Orpah Akoth Agot--
Report of the Taskforce on Pyramid Schemes
285
Hon. Francis Nyenze: Oprah--
Ms. Orpah Aguso: Please, do not write Oprah, it is Orpah, but everybody calls me Oprah. My
names are Orpah Akoth Aguso. Mine, just like everybody had an investment; let me just
highlight a little bit and then, may be, pause a question to the Panel. Like everybody invested, I
invested in one that was called Magnon. Yes, I was told by a friend, I went in. The first time I
put in Kshs.5,000/- and I was told after three weeks I will get thrice that amount, and I got.
Then, I decided--
Hon. Francis Nyenze: You got that one?
Ms. Orpah Aguso: Yes, I got that. Then I decided to put in another Kshs.5,000/-. Then I went
to my sister and told her also to bring in her money and we pulled it together and put in a total of
Shs.90,000/-. When the maturity date was about to reach, that day when we went, they told us
there is a problem with the Commissioner of Co-operatives, they had to close; that they do not
work as a Co-operative Society, so they were only able to pay us 20% on the total amount they
were meant to be giving us on that day. We camped there until very late in the evening, then
they gave us a 10% and they took all our receipts and left us with the (?) where they had
indicated the amounts we had invested.
Apart from that, I had invested some money under my child’s name. This money I had borrowed
it – sorry to say – but I decided to be tricky a little bit; I tricked my husband, he gave me some
money. I told him I was going to pay (?) I had been retrenched. So, I told him I was going
to do some business. So, he gave me about Shs.200,000/-. After he gave me this Shs.200,000/-,
I decided to put it under my child’s name. I went to the account also and withdrew the money
that was there without him knowing. So, I went and invested in this same scheme – Magnon
Scheme. I put there a total of Shs.445,000/- in Magnon under my name and my child’s name.
Then I put in Shs.20,000/- at Montblanc – Jitegemee. The maturity date came and they gave me
a cheque and the cheque bounced.
Then I put in Shs.2,200/- in DECI which also I have not got. I also put Shs.20,000/- in (?)
and Shs.40,000/- in Mantle – there is one called Mantle. Then I put Shs.110,000/- in Smart. The
Smart one is (inaudible) me and I think, I have seen
Report of the Taskforce on Pyramid Schemes
286
some of the people we were with in Smart here; we started meeting at Jivanjee. The Chairman
who was organizing that initiative took our receits telling us that he was going to meet a lady
who was running this Smart Organization and we were going to be paid and to date, we keep on
calling him and he has not brought us our receipts; we do not even know what to do.
My personal experience, I told you I tricked my husband and he gave money – and just to make
fun of it – when he found that I had taken the money, I was given a thorough beating, eh, I had to
to take off. I had to take off and we have separated since that time – 2007. Our parents have
tried to intervene but he says I tricked him, he wants his money, you know. So, I am just there
now surviving by the Grace of God and I trust in Him each single day as long as God still
(inaudible) I am grateful. Thank you.
Hon. Francis Nyenze: That sounds like Hollywood movie. Imagine, she is separated, you
wanted to make your family rich and it is a very sad story because you never wished that and
these are the things you wanted to hear and share so that those who committed suicide-- we do
not want anybody to commit suicide from now. Because now, if she has not committed suicide
and her husband kicked her out; you, you are not being kicked out by your husband or your wife
is not telling you to go to hell, why should you commit suicide? Let us follow this money and
get it. So, we do not want to hear someone has committed suicide because of that money. That
is why we have public hearings so that we share so that you know that Nyenze’s story is the
same as Wanjiku’s story, Otieno’s story; this is the need for us to listen to each other. We had
carried each other, we have moved and we get this money. So, we want to hear from a man.
Ms. Orpah Aguso: I invested money-- I just want to ask a question. I invested some money
under my child’s name. My child is a minor – he is just 10 years now. I was wondering, as I am
filing my receipts, she does not have an ID, I just put it under her name; and my mother also,
who is ailing at home – I had put in some little amount under her name also, Shs.20,000/-. How
is it going to be handled?
Hon. Francis Nyenze: Now, just attach those receipts for your ailing mother and for your
young child and that one will be taken care of. Now we want to hear from a man – thank you.
Mr. Joseph Odhiambo: I am Joseph Odhiambo Akulu. Apparently--
Report of the Taskforce on Pyramid Schemes
287
Hon. Francis Nyenze: Anza tena, Joseph.
Mr. Joseph Odhiambo: I am Joseph Odhiambo Akulu. Apparently, I got introduced by a
family friend called Purity Nzioka to Clip. Clip was kind of-- more of Bible, Christian
something and given that I was working in a church, I believed that those who do the word of
God actually do what they do. But later I realized, in 2007 in February, I put in Shs.300,000/-. I
got this money from my Co-operataive loan – Sacco and we were introduced. I was told this
thing had gone on for more than three years and people were taking money, so we got excited
that we were late while people were reaping and their lives were changing. Because it was more
Christian, I did not ask any question. We got introduced, we paid the registration fee and the
money that was required. I got the return – was it 5th month or 60 days – I got the 10% and then
another 10%. Then the third month, it stopped in the fourth month. So, when I went to Clip,
they have an office in South C – somewhere – I found that it had been closed and we were told to
keep on checking. Up to now, I have been keeping on checking, keeping on checking without
any (?) and I started blaming myself, I was condemning myself why I had put this money
because the Co-operative has kept on asking for this money. So, we had to look for a way of
how to pay the money. We are still paying as we wait for Clip to sort us out. The problem that I
have been (?) is that, we may not get it. So, when I heard about this I said, God
may be is speaking to us again.
So, why I am so bitter is that this thing was here and our government was also here and knew all
the loopholes and they did not talk to us – they did not tell the public and I am so bitter about
this, Bwana Mheshimiwa. This thing was known – it was not under the ground – it was not done
in the (?) somebody in the government knew about it. The public could have been told.
When my sister says that she has been separated, it is so bad – a family that should be going on.
Me, I had to move out of where I was staying to look for a small place and my money is gone
and it is about suffering and suffering all over and we have a government which is supposed to
protect the people.
So, Bwana Mheshimiwa, if you can work out this for us to get this money, and in future, let the
government protect wananchi so that the mzee does not lose over Shs.100,000/- while he is
Report of the Taskforce on Pyramid Schemes
288
walking, suffering for no reason. We have people who can protect us; and that is why we have
elected a government, please.
And people talk of Christians; I think it is high time Christians-- we are failing. I know 70%
here are Christians. It is the world that is influencing us instead of the Christians influencing the
world; that is why we are getting into this-- because we have failed; Christians have failed and I
can speak when 100% sure that we have failed. If we had not failed, we could have been
somewhere else. Thank you, Mheshimiwa.
Hon. Francis Nyenze: Thank you, Joseph for that contribution and sorry for losing so much
money. As we continue, we want number 31 to 40 to go and register now. Walk out there,
register and come back. There is that challenge that Joseph Odhiambo has thrown to Christians
because many people who joined these pyramid schemes joined because a church person – or
someone who is a Christian trusted-- influenced you. And I hear Muslims, 100%, even in their
bank, it is very difficult for them to con you. So, it is a challenge to us Christians. Now let us
hear from a lady. When we share these stories it will prevent families from breaking up, people
from getting stress and people from dying. Let us listen to this lady.
Ms. Beatrice Biwot: Good afternoon. My names are Beatrice (?) We lost money. We had
(inaudible) with other women, it was a Welfare and we had put our money together
and took that money to Clip because one of the members told us they had put some money in
Clip. So, we put 350,000/- and then another two where I am a member of (?)
in the Women Group I was the Chairlady, but now the group is broken because we lost the
money so, we do not have the heart of going on again.
The second group where I am a church member, they trusted me because I was in charge of the
Welfare. One member said that there is a group called Kenya Business and it is registered under
the Ministry of Co-operative and I have the registration and the PIN number here. So, we
thought that it was a good Co-operative. So, we put money there – Shs.435,000/-. Now, we lost
that money again. So, this Kenya Business, they kept telling us through their Newspaper that the
Ministry of Co-operative are the ones who are having a problem; they have told us not to give
you your money and I have all the (?) It was announced through the Newspaper, Friday
Nation on 25th June, 2007 and again around September; I have a few names here. They were
Report of the Taskforce on Pyramid Schemes
289
offering some things like; they were (inaudible) they were loaning people
money – I have the pictures here which I am going to give you as evidence so that you look. I
will not explain everything but that one you use as evidence. I still have some more in the house.
Why I kept on fighting on for this money, you know when you are a leader, you do not give up.
I am here on behalf of Kenya Business; I am in charge of Kenya Business. When we lost our
money in Kenya Business, we joined another group. I told people you are not going to allow
your money to go like this; let us form a Committee and let us call people and tell them to come
around and we continue fighting for our money. How many are in Kenya Business, put up your
hands. Are you here to witness that I am your representative? How many have registered with
us, who have a case in the High Court?
We have a case in the High Court, we have a lawyer and we have been fighting all through. I am
in charge of the Welfare. In these pyramids, people have been trying to come together and fight
for their money but between ourselves we have conmen and conwomen and as we have been
fighting amongst ourselves within the Committee because some people, when we collect some
money we want to take to the lawyer, some people still take that money, they use the money. So,
sometimes we have fights between ourselves, between the Committee but God has helped us.
Hon. Francis Nyenze: Thank you, Beatrice Biwot for that precise presentation and we will do
the best we can. Now we will not give a man because there were two ladies who came here.
The other lady will come and then we will open for the men.
Ms. Priscilla Kwa wakubwa wetu na wenzangu wenye tulipoteza pesa. Ile kitu mimi
ningesema, ningesema kwa zile zangu nilipoteza--
Hon. Francis Nyenze: Anza na jina.
Ms. Priscilla Kwa majina naitwa Priscilla. Kwa ile pesa nilipoteza, mimi nikiangalia,
nilijingiza kwa hii biashara kwasababu ya shida. Kama si shida nilikuwa nayo singeingia kwa
hii biashara. Nilikuwa na shida kwanza, mimi sina bwana, mashemeji (?)
shamba yangu mpaka sasa nikaona nikiweka pesa hapa naweza kukaa kama mwanamke ako na
bwana plus. Ndio nikaweka pesa hapa izalie ninunue shamba. Sasa ile pesa nimeweka yote;
kwa DECI niliweka Shs.96,000/-, tena nikarudi – sikuwa nimeweka
Report of the Taskforce on Pyramid Schemes
290
(inaudible) tena nikarudi nikaweka Shs.6,400/-, nikarudi nikaweka
kwa (?) Shs.32,000/- kwa DECI moja hiyo. Nikarudi nikaweka Shs.3,000/-,
na nikarudi tena nikaweka Shs.3,000/-; ziko tofauti. Nikaambiwa kuna ingine inalipa mzuri –
inaitwa National Visa. Huko nikaweka Shs.10,000/- kwa jina yangu, nikaweka Shs.10,000/- kwa
jina ya mtoto, nikaweka Shs.10,000/- kwa jina ya ndungu yangu mwingine. Nikaendelea,
nikaambiwa kuna ingine ya kanisa – inaitwa Family in Need Organization, ilikuwa huko juu.
Nikaenda nikaweka Shs.20,000/-, nikaweka kwa jina ya ndungu yangu Shs.30,000. Nikaweka
kwa jina yangu Shs.20,000/- tena kwa hiyo FINO moja. Mkikimbia town ukilipwa, mnnalipwa
kidogo, na ingine yenye hujalipa mnauliza, nikapata ingine inaitwa Freer – nikaweka
Shs.20,000/- kwa jina yangu. Nikarudi nikaenda Monteblanck na nikaweka Shs.20,000/- kwa
jina yangu. Nikarudi nikachukua ingine inaitwa (?) nikaweka Shs.20,000/-. Nikarudi
nikaenda Armiti nikaweka Shs.10,000/- na nikaweka kwa jina ya mtoto Shs.20,000/-. Nikarudi
nikapata ingine inaitwa Popera – nikaweka Shs.20,000/-.
(inaudible) kwa sababu ingine tulikuwa tunaenda tunaambiwa
hiyo account ilifungwa na serikali, tumetolewa yote na serikali. Si serikali tumepata ndio hii?
Utafute zile mtaweza – hata (inaudible) mtu ako hai
(inaudible) jamani wanawake, tumezunguka kwa sababu hata hapa mkiona
wengi ni wanawake. Mwanaume hata kama alipeleka alipeleka hile yake hakuchukua ya bibi
akapeleka. Mwanaume alipeleka yake. Lakini mwanamke kama mimi, imagine ile pesa nilikuwa
naye, sina bwana, sasa ndio hiyo shida, hata hujui uende wapi – si tuko kwa ajili ya Mungu?
Hon. Francis Nyenze: Sorry sana, Priscilla and this is a lot of money. But one thing I have
also realized, Kenyans like investment – hiyo si ni kweli? If there are any people who really like
investments, they are Kenyans. Na hapo ndio hao unscrupulous people wanapata kanjia
wanapitia; but now we will be more clever. Now, we give this chance to a man, ili wasisikie
kama tumewalalia. Any man-- the majority here are women and if men are exhausted we will
give to a woman-- oh, there is a gentleman there at the back.
Mr. John Nyaga: Hamjamboni? Kwa majina naitwa John Kinyua Nyaga. Mimi nilikuwa
nime-invest kwa pyramids mbili. Ya kwanza ilikuwa ni Sasanet Investment ambapo nilikuwa
nimeweka Shs.300,000/- na kwa hiyo pesa niliweka, nafikiria nilipata interest kwa miezi miwili
peke yake. Ya pili, niliweka kwa Circuit ambao niliweka 950,000/-. Hiyo nilikuwa nipate
Report of the Taskforce on Pyramid Schemes
291
interest ya 15% - yaani, I was to get a monthly cheque of Shs.151,000/-. Nilipopata cheque ya
kwanza, nilipopeleka kwa bank ika-bounce; kwa hivyo, sikupata hata ndururu kwa hiyo pesa.
Nafikiria kutoka hapo tulikuwa tunafuata hii pesa na wale walikuwa wame-invest na Circuit.
Kuna Committee tulichagua ambapo tulikuwa tunalipa Sh.1,000/- ndio ukue member. Hii
Committee haikuwa transparent kwa sababu hawapatiani feedback-- kwa hivyo hata hatujui
hiyo ilifikia wapi. Asante.
Hon. Francis Nyenze: Thank you, Mr. Nyaga I am sorry for that, that is a lot of money. That
is Shs.1,250,000/- Now we will hear from a lady – they share their story; everything is being
recorded beside the record that we do here. Let us hear from any lady now who wants to share
their story; it is good, it helps us. There is a gentleman there; give him the microphone.
Mr. Kasugu: Nimewasalimia, hamjambo ambao wale mlinyang’wa pesa. Kwa majina
naitwa Kasugu, na nime-register. Kama naweza kuzungumuzia kwa hii biashara ya pesa, ya
kwanza ilikuwa inaitwa Clip. Niliambiwa walikuwa wanapatiana 10%, nikaenda nikachukua
loan ya Shs.250,000/-; nikaweka yote pale. Nikapata mara ya kwanza na ya pili.
Hon. Francis Nyenze: Interest?
Mr. Kasugu: Interest. Kuanzia hapo kuenda mbele, mambo ikawa ngumu. Na wakati
niliandika barua nataka kutoka sikupata hiyo pesa. Kwa hivyo, mpaka leo ninawadai hiyo pesa
na niko na documents nilipewa Circuit.
Ya pili niliingia mahali inaitwa Smart – Smart ilikuwa very interesting; unaweka pesa kidogo
inazaa mara tatu. Nikaweka Shs.15,000/-, nikaambiwa nikuje after three weeks nipate
Shs.45,000/-. Hiyo ilipotea mpaka wa leo bado nangoja hiyo Shs.45,000/- Ingine niliingia
inaitwa Family In Need (FINO). Nikaingia na Shs.10,000/- na wakasema unapata three times –
hata hiyo sikuwa na mahali tulienda. Nikaingia ingine ilikuwa inasaidia watoto; nilikuja hiyo,
niliona kama ilikuwa genuine – ilikuwa hapa Yaya Center. Tukaambiwa tuweke pesa kwa bank
and I paid about Shs.11,000/- for my two children na ilikuwa inaitwa Clout – I have the
documents here.
Report of the Taskforce on Pyramid Schemes
292
Hon. Francis Nyenze: Tutaangalia makaratasi ukimaliza.
Mr. Kasugu: Nika-register na Shs.11,000/- wakasema watalipia watoto hawa wawili school
fees. Nimefuata mpaka wa leo pahali wamehama kutoka hapo Yaya Center, sijui mahali wako.
Wakati nimesikia ati (inaudible) I went myself and
interestingly, wametokea ati wanataka kutafutia watu pesa kwa sababu
(inaudible) kama mimi nimetoka my co-operative, because I took a
loan and I am now paying a loan and I did not use that money. I have never earned a salary; my
family, my children, wengine nimewatoa shule mahali walikuweko – now we are trying to settle
here in Nairobi. Nimejaribu ku-settle down na hiyo loan, imekataa. They have accepted me,
wamenipatia pesa kidogo – I have tried all ways ili ni-balance nione vile nitaishi hapa Nairobi,
lakini imekuwa ngumu. So, please, you have come out that you want to help us, because you
people are here. Sasa tumesikia wengine wameenda Tanzania; they have started that thing there.
So, (inaudible) you know, I saw those people
here and I really was disappointed. So, please help us.
Hon. Francis Nyenze: Thank you, Kasugu. Give us the documents so that we verify and sorry
for that. It is the same story of suffering and the reason why we are sharing these stories in this
public hearing is first, to gather that information, compare it, record it and also, to know that you
are not the only person who is undergoing those problems. Unaweza kusema, you are so
unlucky you cannot afford a pair of shoe. Kumbe now, mwenzako wako hapa hakupatiwa mguu,
and he is still hoping and he is settling because the sun rises and sets. Unaweza kusema ati, I am
very desperate because I do not have money but Mungu amekuweka hai leo. Kuna mwengine
alikufa? Hata hawa matajiri walikula hiyo pesa? So, we are sharing to know, we are not the
worst; we are in difficulties but we are not the worst. Sasa, in the next five minutes, we are
coming to a stop, halafu kesho is our last day here in Nairobi. But registration will continue
going on for those people living in Nairobi and you will be told where to register so that you
bring those documents. They are most important. Now, we want to give one or two people
waseme. Ikiwa kuko na jambo lolote na unaona tukifunga utakuwa umefungiwa and you may
not be able to come tomorrow, we want to give you that chance. Kuna mtu ako na jambo ama
story anataka ku-share na sisi kabla hatujafunga. Give it to that gentleman.
Report of the Taskforce on Pyramid Schemes
293
Mr. Kariuki: Habari zenu? Kwa majina naitwa Kariuki, nimeokoka. Hii habari ya hii Clip,
ndugu yangu ndie alikuwa ameanza hii kitu – sisi hatukuwa tunaijua. Alikuwa mwalimu huko
Kikuyu. Alikuwa Deputy Headmaster wa Kikuyu na aliuliwa na wakora – alipigwa risasi
akakufa. Sasa hii pesa nilipeleka huko ilikuwa ya family member. Sasa ukiniona hivi, mama
yangu si ni mzee? Nikiwa na miaka 50 saa hii, mama yangu ako na ngapi? Na baba yangu,
wote ni wazee. Ndugu yetu alipouwawa, mimi nikachaguliwa kwa sababu hapo walikuwa
wanaandika next of kin anaweza kuwa nani, nikachaguliwa na family nikuwe mimi ndio
nitasimamia pesa, na huko pesa alikuwa amepeleka ni Shs.300,000/-. Kwa hii, tulichukua faida
mara tatu; sababu wakati alikufa, nilipoanza kuchukua pesa nilichukua mara tatu – thrity
thousand, thirty thousand, thirty thousand. Ilipofika wakati wa kwenda kuchukua hizi pesa, mimi
nikaenda nikaulizwa kama nichukue ama nitaongeza zingine. Mimi nikaona hakuna haja
nichukue na hii ng’ombe ninakamua mzuri, inatoka maziwa mzuri; nikatafuta ingine mia tano,
ya family nikapeleka ikawa Shs.800,000/- - kartasi ndio hii.
Hon. Francis Nyenze: You said hiyo ilikuwa which one, Clip?
Mr. Kariuki: Ilikuwa ni Clip. Haya, vile bibi yangu aliona pesa inatoka vizuru, hata yeye
akachanga Shs.100,000/- akapeleka. Akakula mara moja tu, Shs.6,000/- sababu aliambiwa
badala ya 10% ikakuwa Shs.6,000/- sababu moja ni ya kutuma cheque. Akapelekewa kwa
bank moja ya Barclays. Pesa ya pili, aliambiwa hiyo pesa iko lakini
hawezi toa – tayari ilikuwa imefika kwa bank – hapa kwa hii Barclays iko hapa karibu. Haya,
kuna ingine ya DECI, nikapeleka yangu Shs.5,000/-, ya msichana wangu Shs.5,000/- na ya bibi
yangu 5,000/-. Sikukula hata siku moja hizo pesa na mimi ni mtu wa jua kali. Kutoka 1984,
mimi sijaandikiwa kazi. Mimi niko Kirinyaga Road kwa Jua Kali. Asante.
Hon. Francis Nyenze: Thank you, Bwana Kariuki and sorry sana, for that very sad story and
that is a lot of money; Shs.900,000/- plus Shs.15,000/- is just around one million shillings na mtu
aliuliwa and as one mama said here, anakutana na hawa watu matumbo ikiwa mbele
wakiendesha magari ile kubwa; wakiishi manyumba ya kifaharil surely the government should
do something. This is the poor common man who wants to do business and then then the Sharks
in the sea. The Sharks have to be caught and put in the right place. Now, we want to close and
unless there is the last, last person who has such a story like Kariuki’s, we want to pray and go.
Report of the Taskforce on Pyramid Schemes
294
There is a lady lifting up her hands, so as we do not close her, she is the last person now; come
madam.
Ms. Virginia Wambui: Habari zenu?
Members: Mzuri.
Ms. Virginia Wambui: Mimi naitwa Virginia Wambui. Mimi nilipeleka DECI,
(inaudible) nikaenda Globe – Shs.2,500/-, nikapeleka ile ingine
inaitwa-- kuna ingine nilienda ile nyumba inaitwa-- gorofa la nne.
Hon. Francis Nyenze: Sasanet uliweka ngapi?
Ms. Virginia Wambui: Shs.5,000/- Sasa, wakati nilienda DECI huko Kawangware,
nilipelekea msichana wangu hapo pale na alikuwa mgonjwa; nikampelekea Shs.7,000/-.
Nikaenda huko Globe nikaweka Shs.4,500/-. Kwa sababu nilikuwa ninamnunulia dawa, nikaona
hiyo pesa ikikuja nitafaidika – kwa sababu hata bwana wangu – na hata huyo bwana alikufa
(?) Tena nikauza ng’ombe yangu moja nikapatie hawa watoto kwa sababu hawana
kazi mzuri kwa sababu hawakutoka vizuri – nikawapatia Shs.12,000/-. Tena hiyo nikapatia
kijana mwingine huyo ameoa msichana wangu wa pili.
Sasa vile tunasema, ukituona hapa, ng’ombe hakuna, ilienda; tunakula (?) na unaona huyo
msichana alikuwa anakunywa dawa Shs.3,000/- kila mwezi. Na alikuwa clinic kule Kenyatta
inaitwa Doctors’ Plaza. Sasa mtusaidie kwa sababu mkituona hivyo, niko na msichana
mwingine ako na watoto wawili na ako nyumbani na ananitegemea. Sasa mjue hata wale
wengine hawajakuja, wengine ni wangonjwa – wakuambie vile wako nazo. Ukitusaidia, Mungu
atakubariki.
Hon. Francis Nyenze: Thank you, Virginia, Mungu atakusaidia. Sasa, tutauliza moja wenu--
Now, there is a friend there but now, naona kama unaweza contribute tomorrow – unless it is
‘point of order’. Sema.
Report of the Taskforce on Pyramid Schemes
295
Mr. Kariuki: The first time we were with official (?) and when we were here we were
promised that something is going to be done – that was sometime last year. The other time we
had groups coming to assist us. So, (inaudible) had promised to give
us some assistance; but we are happy that the Task Force has been appointed and properly
gazzeted and we hope you are going to assist the people you see here – there are quite a number
of them and they have not turned up because of so many promises we have been getting before.
But, we hope now, you are going to speak out with your Team and see what you are going to
(?) These people are known; these people deposited their money in these banks. Some of us
used to be told, go and deposit the money in some of these banks here. So, if you follow those
banks you can get these people who played this trick – those who cheated us. Cheating these
days is very easy – you cannot know when you are being cheated because he has been paid, he
has been paid and me, I also think I can also get paid. So, they have a way of doing the business.
This is a matter of money laundering, it is a matter of (?) and their bankers can
give you all the people who banked what in thos banks na hii ni mali walikuwa wamechukua
kwetu. Hiyo ndio nilikuwa nataka kusema. Asante sana.
Hon. Francis Nyenze: Okay, thank you very much, Kariuki. I think we have come to the end
of this session; this has been emotional. Of the sessions we have listened, the stories of today
were very moving and they taught us a lesson and I told you, we also have stories to tell. Do not
think you are the only one who was coned. But, one thing we believe is that God will prevail
this time, the truth will be known and we will not favor, hide but, we will say the truth the way it
should be said – nothing but the truth. We have been promised there before, but this Task Force,
the pressure was so much because people were conned, they are undergoing a lot of problems
until the government now had to do something; so it has done something. They stated these
officers you see seated in front of you. Some have been CID Officers, others are lawyers, others
are retired teachers, others are politicians, like me. So, we have a rich background of every side
of profession here and they are people of intergrity who will not hide from the truth. So, for the
past frustration, you have been promised; forget about the past. Say like Mrs Biwot said here,
leaders never give up because if you give up, you have lost it. Keep fighting and you will get
your right; keep fighting until you get your money or you die fighting. But, we do not want to
hear ati, uliwacha hapa na ukaenda ku-commit suicide – after you have listened to these people
and know that you are not the worst, neither are you the best, you are in the middle. Kwa hivyo,
take courage. Tuombewe na mtu moja-- we thank God for giving us a very good afternoon
Report of the Taskforce on Pyramid Schemes
296
where we have deliberated. Kesho tutaanza saa nne hapa mpaka saa kama hizi. Those who have
not presented, they can come tomorrow and then you tell wale marafiki hawajakuja. Who will
pray for us? Do we call the same man of God or-- ah, that man. Thank you very much.
Tusimame, tuombe pamoja.
Prayer by Participant: Our Father, we are truly grateful for this opportunity for bringing us
together. We thank you for the wisdom that you have given the government to look at the people
and to cater for the needs that they have presented. God we pray, Father, that everything that we
have deliberated here and all the evidences that are going to be given, Father you shall follow
them and justice shall be done. We also pray for those who schemed these pyramids; we pray
wherever they are that God you shall judge them in your own way because it is not our place to
judge them but God, you shall judge them and bring the money back to the people who invested.
Father we pray for wisdom to this Panel – lead them and guide them as they go through their
(?) We know it is going to be a tough journey even for them, they will get oppositions but we
are covering them with your precious blood and praying that God, you shall see them through the
whole process and we shall give you all the glory and honor when everyone is settled back with
his money. We thank you for this session and we pray that you shall be with us the rest of the
time. (All joined in) “May the grace of our Lord Jesus Christ, and the love of God and the
fellowship of the holy spirit be with us now and forever more, Amen.”
Hon. Francis Nyenze: Thank you very much and go in peace.
Hearing adjourned at 3.19 p.m.
Report of the Taskforce on Pyramid Schemes
297
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
Report of the Taskforce on Pyramid Schemes
298
VERBATIM REPORT
OF THE TASK FORCE ON PYRAMID SCHEMES
Report of the Taskforce on Pyramid Schemes
299
26TH FEBRUARY 2009
RAILWAY CLUB - NAIROBI
VERBATIM REPORT OF THE TASK FORCE ON PYRAMID SCHEMES
MEMBERS PRESENT:
Hon Francis Nyenze - Chairman Amb.John Mukuriah - Vice Chair Mr. David Odhiambo Oduol - Member Mr. H. Mwai Rurigi - Member Mrs Sakina Adan - Member Mrs Emily Mwachoo - Member Mr. Joseph Kibowot - Member Mr. Zebedeo Onguti - Member Dr Machanja Ligabo - Member
Secretariat
Mr. Philip Gichuki - Secretary
Mrs. Roseline Ragama
Hearing began at 10.41 a.m. with Hon. Nyenze in Chair.
Report of the Taskforce on Pyramid Schemes
300
Hon. Francis Nyenze: Asante kwa kuja. Sasa tutaanza mkutano wetu na vile tunafanya kila
siku, tutaanza na maombi na tutauliza moja wenu atuongoze kwa maombi ili tuwe na mkutano
mwema. Kwa hivyo, moja wenu atuongoze kwa maombi. Thank you, mama. Utapatiwa
microphone. Hata ukiomba ukiwa hapo ndio mzuri. Tusimama tuombe.
(Prayer by a Participant)
Our Father and God, we thank you this morning and magnify your Holy name. We thank you for
who you are and this day you have made and we are glad in it. This day, Jehovah God, Father
we have all come here with a common purpose. There is this problem of pyramids and the only
problem related to money and we commit this problem unto your hands. Father, even as we
start, we invite you to head this meeting, Jehovah God; be in control, lead us, guide us and show
us the way. Remember mercy, Jehovah God our Father, not because of our righteousness
Jehovah God, but whatever we did or where we sinned, we are asking for forgiveness through
your son, Lord Jesus Christ. Our Father and our God, we thank you so much, we bless you and
glory you. It is in Jesus’ mighty name we pray, Amen.
Hon. Francis Nyenze: Asante sana kwa maombi; mnaweza keti. Sasa tutaanza kikao chetu,
kwa hivyo ningewaomba msiketi nyuma sana; fill in the seats in front ili tuanze. Kwanza
ningetaka ku-introduce these Commissioners – wale wanafuatilia pesa zenu, zile mlipoteza na
nitaanza kule mwisho kwa Bwana Odhiambo. Mtu atasema jina lake na anything else.
Mr. David Odhiambo: Ladies and gentlemen and members of the Task Force. My name is
David Oduol Odhiambo. I am a member of this Commission.
Mr. Zebedeo Ong’uti: Good morning, ladies and gentlemen. My names are Zebedeo Ong’uti;
member of the Task Force. Thank you.
Ms. Emily Mwachoo: Good morning, ladies and gentlemen. My name is Emily Mwachoo;
member of the Task Force.
Report of the Taskforce on Pyramid Schemes
301
Dr. Machanja Ligabo: Jina langu ni Dr. Machanja Ligabo; member of the Task Force.
Amb. John Mukuriahh: Hamjambo. Jina langu naitwa Ambassador John Mukuriah; Vice
Chairman wa hii Task Force, asante.
Mr. Joseph Kibiwot: Good morning. Jina langu ninaitwa Joseph Kibiwot.
Hon. Francis Nyenze: Okay, asante sana. Mine is Francis Nyenze; Chairman of the Task
Force. For today, we have our Vice Chairman, Ambassador John Mukuriah chairing our session
and what we want from you is, tukikupatia nafasi kusimama hapa, utuambie jina kwanza – jina
yako, ile pyramid scheme uliingia, how much money uliweka, makubaliano – how much you
were to get – either the money was to be doubled or you were to get interest kwa this much na
pengine refund ya principal. If you tell us that na documents hapo uta-register, we will also
record that. Kwa hivyo, ukisimama, jina yako na pyramid scheme, the amount you put na ulipata
pesa yako ama ulipoteza. This will help us and it will help members, when we share our stories.
Because we are still recording – and records are very important, so that we know how to
overcome these difficulties because we have to make recommendations. First mngetaka kujua
our Terms of References na hizo ndio ningetaka kwanza mjue ile kazi tumepatiwa.
Our Terms of Reference are:
i) to establish a number and the nature of pyramid scheme and other related schemes
and to identify the directors. Kwanza tujue the number of the schemes na their nature
na directors.
ii) To enquire and investigate the amount and the whereabouts of the funds invested in
pyramids and other related schemes.
iii) To formulate, recommend strategies to apprehend operators of pyramids and other
related schemes with a view of recommending prosecution.
iv) To recommend mechanism for recovery of funds invested with these pyramid
schemes.
Sasa, mmejua our Terms of References; ni kufuatilia zile pesa zenu mliweka; tujue ma-directors
walikuwa akina nani, walichukua pesa ngapi and then we try to recover and also recommend
Report of the Taskforce on Pyramid Schemes
302
prosecution kwa hawa watu. Kwa hivyo leo, mmekuja kwa sababu mume umia mmepoteza pesa.
Hata sisi tuko na story ya kukuambia. Hata sisi tulipoteza pesa. So, it affected all Kenyans.
What we do not want ni muanze kusema hii Task Force ni kama zile zingine za serikali, tunajua
mtafanya kazi ili ziwekwe tu katika shelf na ianze kupata vumbi, no. We are a different Task
Force, we trust God, we will do the best we can na hii kitu ya pyramid schemes ili-affect many
Kenyans. We are told, because we have started public hearings, kuko na watu wame-commit
suicide; mtu amejinyonga kwa sababu ya ile pesa. Kuko na people who have divorced kwa
sababu pengine ile pesa yote ya retire – wakati ulilipwa, uliweka hapo ukitaka tu kupata faida ili
ujiunue na familia yake na yote inakwenda. There are people who cannot take their children to
school. Tumeambiwa so many touching stories and we pray God, that after three months, we
will come up with solutions, tuone hii pesa iko wapi – kwa sababu ma-directors ni watu
wanaendesha magari makubwa, wanaishi kwa manyumba ya kifahari, watu wamejenga
manyumba na pesa ya maskini. Hata ikiwa-- Mungu anaona tu. With those few remarks I will
now hand over to Ambassador Mukuriah to lead today’s deliberation. Tukikupatia nafasi, kwa
sababu watu ni wengi, wewe usianze kueleza mambo ingine apart from jina yako, the pyramid
scheme, the amount of money you put, ile agreement ulikuwa nayo na either ulipoteza ama
ulipata pesa yako. Because we have also realized, kuko na watu walifaidika kwa pyramid
schemes, wakalipwa, wakalipwa wakawa matajiri. Ukisimama, utuambie hiyo. Hii ingine ya
vile uliteseka, kila mtu aliteseka; wewe utuambie ile tumekuliza; so Ambassador, welcome.
Amb. John Mukuriahh: Hamjambo tena? Just to clarify one thing, that is a government Task
Force but we are not in government. Sisi si watu wa serikali, we have come from all fields, we
have our own competencies, we have people who specialized in fianance, we have lawyers, we
have people who are specialized in crime, investigations, some of us are diplomats – we have
everybody here. So we are participating in a government Task Force but we are not in
government.
Second point; this is not you and us. We are also victims, incidentally. Most of us who sit on
this table are victims; we are more or less speaking at the same wavelength. Kwa hivyo sasa
tuendelee. So, we have the first person to stand and come up with whatever we want to hear
from you – it is a question of how much you invested with which pyramid, etc. Can we have the
first person raising the hand, yes mama. And can we put our phones on silent mode. Simu zote
tuzime isilie, na tuendelee; hata sisi tumezima.
Report of the Taskforce on Pyramid Schemes
303
Ms. Lydia Muoki: Hamjambo tena? Kwa majina naitwa Lydia Linda Muoki. Mimi nilikuwa
nafanya kazi kampuni moja ilikuwa inaitwa Telkom Kenya. Telkom Kenya, ilifika wakati
nikakuwa fired na nikalipwa marupurupu. Tukiwa nje, tukasikia kuna mambo pyramids
schemes. Ya kwanza nilisikia ilikuwa inaitwa DECI; nikaenda nikaweka Sh.10,000/-. Baada ya
mwezi moja nikaenda nikapewa Shs.24,600/- hata nikapeleka kwa bank account na nika cash
hiyo pesa. Nikasikia utamu; nikasikia utamo, nikaona, I can join again. Nikaenda nika-join
tena na Shs.10,000/- . Kabla hata hiyo ya Shs.10,000/- haija-mature, nikaenda nika-join tena na
Shs.32,000/-. Ndiyo kama hii ya Shs.10,000/- iki-mature, itawachana ni hii ingine with few days.
Nikauliza hata mtoto wangu nikamwambia, kwa vile ile pesa nilipata ile ya kwanza, hata mtoto
wangu naye pia akaingia. Akaingia pia yeye na Shs.20,000/-.
Sasa, while we were still there ndio ilianza kuwa tunaambiwa tuende siku fulani ndio mnalipwa,
siku fulani ndio mnalipwa – na hatukuwahi kulipwa hizo pesa. That is where the problem
started.
While I was still there, nikaingia kwa ingine wanaita Clip. Clip ilikuwa inaonekana iko na
difference kidogo, because unaenda kwa ofisi, una-sign agreement, unaambiwa ile pesa
umeweka, una-sign agreement uende for 5 months lakini the 5th month hutalipwa interest y ako –
the 5th month ilikuwa ya kwenda ku-renew hiyo pesa if you feel like you want to carry on. So,
niliweka Shs.250,000/-. First month wakanilipa Shs.24,000/- na second month Shs.24,000/-.
That was the end, I never saw any other money and mpaka saa hii, that is why we have this
problem.
Tulikuwa tukiuliza tunaambiwa pesa zimekuwa. frozen by the government kwa zile account –
these are the stories which we used to be told Because an account happens to take so much the
Central Bank of Kenya normally raise some kind of (?) so they had ordered that account
closed. Now, while I am still here, I want to ask this Central Bank of Kenya have the power to
freeze money in these account, yet what happens when they receive that money because that
money must have come from somewhere. Do they not take time to find out where this money
has come from and start even a story there?
Amb. John Mukuriah: Thank you, Lydia; ngojea tu.
Report of the Taskforce on Pyramid Schemes
304
Dr. Machanja Ligabo: Nilikuwa nataka kukuliza, iko wakili wowote ambaye alikuwa involved
katika hiyo agreement yako na those two schemes?
Ms. Lydia Muoki: One made a proper agreement – especially this one of Clip – this was
written agreement, even as far as asking who is the next of kin, in case of anything. With the
documents we have copies which we are going to produce. They are proper documents.
Amb. John Mukuriah: Lydia, umepeana huko?
Ms. Lydia Muoki: Bado.
Amb. John Mukuriah: Utapeana tu; they will call your number – they call the numbers and
then you-- okay, thank you.
Mr. Mark Too Maina: Kwa majina mimi naitwa Mark Too Wanainaina Maina. Kama vile
officer walikuwa wamesema, kila mtu akija hapa aongee kwa muda mfupi kwa sababu watu ni
wengi. Nilikuwa kwa watu wanajiita Kenya Business Community Co-operative Saving and
Credit Society. Niliweka Shs.110,000/- mwezi wa sita, tarehe sita, 2007; lakini mpaka wakati
huu pyramid ikakuja ikakula.
Mr. Mark Too Maina: Shs.110,000/-
Amb. John Mukuriah: Thank you, Maina. We got your story and sorry for that. Next?
Mr. Thomas Nderi: Mimi naitwa Thomas Nderi. Nilikuwa nime-invest kwa Kenya Business
Community Savings and Credit Society in the year 2007. Mimi nilikuwa nafanya na idara ya
Telkom Kenya ambayo tulikuwa retrenched on 31st January, 2007. Na tukasikia with Kenya
Business they require a co-operative society ambayo mimi mwenyewe nilienda kwa Ministry of
Co-operatives na nika-inquire from Commissioner himself – anaitwa Francis Odhiambo, na
wakaniambia ya kwamba this is a genuine co-operative and even some staff from the Ministry
waliniambia wenyewe pia wame-invest in this co-operative. So, nikaenda kwa bank, kwasababu
nilikuwa nimepatiwa pesa zangu – my last dues, my package from retrenchment – I was given
Report of the Taskforce on Pyramid Schemes
305
Shs.800,000/- ambayo nikaenda nika-invest. I have the document here. Nilikuwa na pesa
ingine, Shs.200,000/- pia nikawekea mke wangu. So, it is one million.
Wakati nilienda huko, kuna mtu alinituma kwa mtu anahusiana na Kenya Business anaitwa
Gideon nikaenda nikaongea na yeye, akaniambia umekuja mahali ambapo ni mzuri – because I
went to View Park Towers, kama mnajua mahali iko – so, nikapatiana cheque ya hiyo pesa.
After one month, nilipata interest; interest was 16%, nikapata the first month. The second
month, nilisoma kwa newspaper ya kwamba minister has suspended the operations of the Kenya
Business. So, what I did, nikarudi kwa hiyo Sacco to find out what was going to happen on our
money. Akasema, it is an exercise ambayo serikali anataka kufanya uchunguzi, kuna mambo
wamepata, so they will take about 30 days kuchunguza ni nini inafanyika because they registered
as a co-operative lakini wamerudi kufanya some pyramid schemes.
Nilikuwa nimepatiwa another cheque Shs.800,000/- and I was getting an interest of
Shs.128,000/- per month. Hiyo cheque haikufaulu kwa bank na kwa siku chache tukapata that
the minister has suspended and at the same time he has done the deregistration of that co-
operative. So, wakasema tu-appeal to the Minister ama tuende court ndio tutafute pesa zetu.
But, us members tulikuja pamoja, tukakuta ya kwamba, tuki-appeal to the Minister and he is the
one who has suspended operation of that Kenya Business, let us go to court. I am telling you,
from 2007 up to date, hatujapatiwa hearing mpaka saa hizi, almost two years. So, vile watu
wengi wanataka kuongea ni ya kwamba tumekosa imani na korti – kwa sababu hata wakubwa
wanasema wamekosa imani na sisi, nashindwa, wanatuambia tuende kortini kufanya nini?
Mimi, ile kitu nawashukuru, Bwana Nyenze, ni ya kwamba I support you and please, msaidie
wananchi na wengi sana wanaumia. Mimi nilikuwa kwa wale watu, tumejaribu kuambia
wananchi wasikufe moyo – tumetembea karibu the whole country na tumeona vile wananchi
wameteseka.
So, what I am saying ni ya kwamba, tafadhali nyinyi pia msiwe kama zile Commissions
zimekuwa nchi hii na hakuna kitu wamesaidia wananchi wa Kenya. Kwa hivyo I hope mtakuwa
Commission ambayo you do not want to compromise. Kwa sababu hawa watu wamekimbia na
pesa ni watu wako na billions – they can even come and buy all of you! Na hivyo ndio tunasema
Report of the Taskforce on Pyramid Schemes
306
msiwe muende hiyo njia, muende njia ya kusaidia wananchi. Kwa hivyo, hiyo ndio kitu ya
maana sana kwa sababu wakati Minister alituita kutuambia nyinyi ni nani, alituambia kila mtu
kazi yake, amefanya wapi na tukasikia na tukatosheka ya kwamba you are the capable people
who can assist Kenyans. Asante sana, na tunafikiria mtasaidia.
Amb. John Mukuriah: Thank you very much. Now we will have a lady; this one here.
Ms. Kinuthia: Asante sana Bwana Nyenze na wenzako na wenzangu wale wanaumia kama
mimi. Mimi naitwa Mrs. Kinuthia. Nili-retire na Telkom na wakati hiyo nilikuwa nimefanya
research nikaingia Sasanet. Ndio Sasanet ilikuwa imefanya miaka kidogo, kidogo – ilianza kitu
2003 or 2002, I do not know. Even my friends were there; ni kitu ilikuwa registered. Nikaona ni
kitu genuine na mzuri sana. I have children, nikaona hii pesa nimepewa, kuliko nianza biashara
inaweza anguka, wacha niweke kidogo ili watoto wango waende at least university because
wanamaliza form four. Kitu ya muhimu ni kwamba niliona iko registered, iko genuine, iko na
advocate ya hali ya juu, Commissioner of Oaths – Camilla and Mwangi Advocates na my friends
were there.
Nikaongea na mzee yangu akachukua some loan – he had kept also some money for our children
to get full education. We went there – sisi hatukupata hiyo ya kila mwezi, tulisema hata tu-
survive tu kidogo kidogo bora tupate hii pesa baada ya mwaka moja. Mimi niliweka nikapata
baada six months, ndio niliona school fees ikaanza kunilemea. That was September, 2006.
Mzee yangu akasema wewe weka one year, wacha tuumie, yeye ni civil servant, pay slip yake
sasa ni Shs.4,000/-. Me, I do not have pay, sijafika kitu inaitwa pension, I am still very young, I
am 40.
Amb. John Mukuriah: How much money did you invest?
Ms. Kinuthia: Tukaenda, tulikuwa tume-combine effort--
Amb. John Mukuriah: Mrs Kinuthia, how much money did you invest – uliweka ngapi, wewe
mwenyewe na ya bwana ilikuwa ngapi.
Report of the Taskforce on Pyramid Schemes
307
Ms. Kinuthia: Mimi mwenyewe nilikuwa nimeweka Shs.500,000/-, that is half a million, so
that I can get six months at 10%, nipate kitu Shs.300,000/- and another six months nipate.
Contract yao ni one year. Unaweza pata in three months, six months and one year; percentage ni
tofauti. September haikufika, July ndio Chege and whatever people walikuwa pamoja ndio
walifunga wakaanza kusema, tutaongea. Mzee yangu aliweka 2 million shillings. Hiyo
tukasema iende one year tukikula hii Shs.500,000/- na tukilipa kidogo, kidogo. Because ikikuja
ku-mature ndio watoto watakuwa wamemaliza – kama sasa wako nje and I do not know what to
do. So, my question is and I am very happy you are here, you are not going to compromise – I
hope – because some people are sleeping hungry. We are really suffering; it is just by the grace
of God. Yule anakaa na bwana yake ni mmoja ama wawili kama mimi because tunamtegemea
Mungu na we went there for a purpose – both of us; even our parents wanatufikiria. So, what I
was asking, kama hii ilikuwa imefanya miaka mingi; I hope the government ilikuwa inajua vile
inaendelea. Huyu mtu ametengeneza sana; alikuwa mara na Safaricom, mara na nini – maneno
yake iko tu kwa table; even you, you will know because you are there – you are doing the
investigation. So, I hope you are going to do something because even Camilla and Mwangi
Advocates anajua hiyo maneno; even when we were going there they were telling us. In fact,
they were there even before the pyramids came – things like Circuit. I hope things are going to
happen. So, me and my husband, that is 2.5 million shillings – we have not been given even one
shilling. We moved the children from whichever school they were; they went to a school where
they do not understand why. Right now my first born was so frustrated because alikuwa
amemaliza shule, ako na watoto wawili because I was not to afford a place. My daughter
mwingine amemalize form four, ako nje; I cannot even afford a computer college of Shs.1,000/-.
So, my husband sometimes ako na depression, but by the grace of God, we are surviving. So, I
hope you are going to do something. We do not want to leave papers like yesterday; that one we
do not want. We refuse in the name of Jesus, you are going to do something; we believe in you
and we are going to trust in you and pray for you because these people are enjoying our money
and making business. I understand Chege is in Sudan doing good business, opening another
Safaricom there. So our money is there, I know we are going to get it fast. Thank you very
much.
Amb. John Mukuriah: Mrs. Kinuthia, have you given your documents, have registered?
Those who are holding registration ticket number 11 to 20 you can now go and register;
Report of the Taskforce on Pyramid Schemes
308
everybody else remain seated. Sasa tutakuwa na mwanaume. Let us have the gentleman here.
Give your name, please.
Mr. John-Paul Thiong’o: My name is John-Paul Thiong’o. I invested in Kenya business,
Shs.200,000/- and got an interest of Shs.32,000/- then I talked with my wife, she took money
from the co-operative, and also from the bank and also borrowed some money and we put 1.7
million shillings in the same Kenya Business and in the same week, Kenya Business fell – the
same week after we deposited. In the process, we realized the people behind Kenya Business
were the people behind Akiba Microfinance; then we discovered they were the people also
behind PABCO (Profession and Business Community Sacco). When we went to Central Bank,
when we went to anti-fraud, they knew the person behind Kenya Business, but when we went to
the records, his name was not appearing but we discovered some of the directors in the others
were still there. We came together, we decided to stop the liquidation, because that is what we
wanted to do; We have done our investigation, we know very well that money was coming
from Kenya Business, Sultana Limited and then to his own personal account. We have invested,
we have discovered that in one of his accounts it has one hundred million shillings. We have
also gone further, we are going to give you some confidential information about Kenya Business
– which we cannot give out here because it means our lives will be in danger. These are links
that people have been looking for but by the grace of God we were able to get the links. Even
among this document that I am going to give you, the person behind Kenya Business has signed
and had appointed somebody to be a director – the signature is there.
I also want to tell members of the public, we have been fighting for this money for a long time –
for some of you who saw me with Honorable Kalonzo, we have talked about that, we have been
following it up, we took it up to the Ministry of Co-operatives and we were able to see
Honorable Nyaga and he recommended the Task Force and now the Task Force is here. As a
speaker said, let us not fight the Task Force. We fought for it, now it is here, it has come to give
us hope; let us stand with the honorable Members. Some of you saw me on television when the
Task Force was being launched and the Minister promised that this is not going to be like any
other Task Force. I can tell you, we have faith in the Task Force.
Report of the Taskforce on Pyramid Schemes
309
We are going to give you information about Circuit that Mr. Emilio gave the lawyer a lot of
money and even the properties that he has bought through the money. So we are also going to
give more information on other schemes as time allow. Thank you very much.
Amb. John Mukuriah: Is there a lady? At the bak there – ngoja. As you come, let us have
one of the Commissioners make a comment.
Mr. Joseph Kibowott: Kuja tu, madam. Wananchi, hii vita juu ya corruption, nah ii
unyang’anyi ya wananchi ambao wanataka kujimudu kimaisha imekuwa ikiendelea mpaka
tumekuwa frustrated kama nyinyi. Lakini, hii vita, lazima ianze mahali fulani na lazima
iazinshwe na watu fulani. Hawa, sisi, tungependa kuwambia tusaidiane iwe na kazi moja ambao
tunaanza hii vita – maana nchi yetu lazima irudishwe iendelee
Kwa hivyo mtu ambayo ana information ya maana sana – wengi wenu wana information.
Tafadhali, fanya mpango kuonana na sisi ili mtusaidie maana, lazima tusanye habari ya kutosha
kujue nini iliendelea, mali iko wapi, na ni akina nani? Hiyo information extra tunahitaji sana
na mkuje ili tusaidiane, tafadhali.
Amb. John Mukuriah: Just to add; if you have any information that you do not want to give
in the Plenary, you can give it to the Secretariat – that is, the head of the Secretariat Mr. Philip
Gichuki, he is there. You can pass it on. If you are not too sure and you want to pass it to us,
you come to Ministry of Co-operative offices, we are in NSSF Building, 10th floor; only if you
have information. Otherwise, registration is here, please.
Ms. Redemter Mary: Good morning? My names are Redemter Mary, I come from Mwingi
district; I am a secondary school teacher there and right now I am doing my Masters in Kenyatta
University. Personally, I was introduced to the-- I do not want to call them pyramids because
according to me, I thought they were saccos and co-operatives and with approval they had, the
certificates, and so on, according to me, that is what I thought and that is how I got convinced
that it was something legal because they have the legal documents.
I was introduced to the pyramids in 2003 by my sister who works here in Nairobi, I was working
in Mwingi district. At first I was so reluctant; I remember it was a time when I wanted to build a
Report of the Taskforce on Pyramid Schemes
310
house in Mwingi town and when I got that money and said, no, let me build a house. When I
wanted to buy my motor bike, she told me, please do this. I told her, I want money and I want to
use a motor bike first; I bought it and I bought a car. After that, she told me, you do not have
responsibility now, I think you can now invest something. I started by investing Shs.7,500/-.
We were told to wait for 40 days and after 40 days we would get our money – double or
something, which never happened. So, I was reluctant for quite some time. My sister had
invested in many other societies as they were then and then in 2005 she again told me, this one is
better, invest only Shs.10,000/-. I told her, I can give you another Shs.10,000/- which she had
invested in Clip. So, I gave her-- not Clip, it was Circuit. She put my Shs.10,000/- in my
account because we were topping up every month. After another month I gave her another
Shs.20,000/-; it was 16% so I was earning Shs.3,200/- and I added another Shs.5,000/-. Then, I
was like now that everything is okay, I was convinced there was no problem; I saw that my sister
was moving – moving from her house in Mathare North which she was paying Shs.1,800/- and
going to Donholm in a very good house which she was paying Shs.10,000/- and now that she
took all the furniture at home. I am the one who came, we went to Ngara, took furniture for
Shs.120,000/- which we paid cash. I was convinced, surely that was a power deal. So, I did not
have a problem to go because I had taken a loan when I was buying my car. I used my pay slip
to convince Kenya Commercial Bank to give me Shs.650,000/- and then pay some loans that I
had with them. I was given Shs.400,000/-/ .
I took some to Circuit – I wanted to make Shs.125,000/- so that I can be getting 20,000/- per
month. Then the other money, we took to Clip. Then there is an aunt of mine who was there and
she was supposed to renew her contract and I gave the other money. And then there was also
Monteblanc which was later registered as Jitegemee, my sister sent me the certificate and
everything and do not blame her because even according to me, the certificates of the societies
were legal and I am surprised that the government was not aware of that because that is not
something that started within a year. I am really surprised that even the Ministry of Co-
operatives was not aware of it, because they gave the certificate and now they want to tell us that
these certificates were not legal, we are convinced that these certificates were legal. So, in total
me, my sister and my aunt, we had Shs.1,490,500/- in all the four pyramid schemes that we had
invested in.
Report of the Taskforce on Pyramid Schemes
311
In Jigetemee we had invested Shs.200,000/-, Clip we had invested a total of Shs.490,000/- and in
Circuit we had Shs.490,000/- and in Pesa Net it was 7,500/-. So, please, we are making a
humble request and we make a humble request that we need the money. I had planned to go
back for Masters and I had planned already in April, 2007 before I got my loan in June. The loan
that I got from Kenya Commercial Bank, I had anticipated with Shs.20,000/- from Circuit, with
around Shs.30,000/- from Clip, I wanted to pay for my fees – which never happened. Instead I
received a miracle, I went to Equity last year when things were very bad, they gave me one
million which they paid KCB. I only had a difference of Shs.100,000/- which I managed to pay
for my first year, and second year third term. Right now, I can say you came at the right time. I
hope the money could come and I can be able to pay for last semester. Thank you.
Amb. John Mukuriah: There is this thing you said, that the Ministry of Co-operatives
registered the pyramids; I will ask one of the Commissioners to just make a brief comment and
then we can proceed. David, can you comment on that; just briefly to clarify the position
because it is important.
Mr. David Oduol: Ladies and gentlemen, you know there is a business form; there are
companies, co-operatives and other matters. Now, there are societies-- what we call Societies
Act – like Welfare organizations. There is also what they term Co-operative Societies which are
registered uinder the Co-operative Societies Act. That one is the difference because you will
realize that there are these pyramids – under pyramids, the Terms of Reference of the Task Force
is to find out the nature – is it pyramid There are the people who accept deposit to non-members,
who behave like bank – I do not think they fall under provision of the Co-operative Socieities
Act. But this is something we are looking at, Mr. Chairman and we will be able to determine
whether-- somebody may have a certificate of registration from the Registrar of Companies but
is he doing what he is supposed to do under the licence? Somebody may have a certificate of
incorportation or certification of registration under the Co-operatives but then, is he doing what
is supposed to be done as a Co-operative under the Co-operative Societies Act? These are the
matters which may help ourselves by sharing our experiences. The Ministry officials, if they are
here, they will tell you because when we hold a meeting as a Co-operative; how you conduct it,
how you can invest as a Co-operatove because we have what they call Savings and Credit, you
pool together money and you lend to each other as a Co-operative. But usually you do not give
Report of the Taskforce on Pyramid Schemes
312
in the form of a pyramid because you cannot have such a big interest. But this one will be
clarified later on. As it is, Mr. Chairman, they can--
Amb. John Mukuriah: Thank you. I think what he has said is, there were those who were
registered as Co-operatives and they abused their certificate of registration. That is the bottom
line and that is why we are here. Next person, please.
Mr. Stephen Maina: Thank you. Good morning ladies and gentlemen? My names are
Stephen Mwangi Maina. I invested to a company called Sasanet. Sasanet was a big investment.
Up to date we have never called it a pyramid because we believe, by the contract that we took
with them, that we were investing in a telecommunications company. To prove to you that, that
is very true, the two gentlemen were members of this Club and that is how they came to sponsor
the field that you can see painted blue. So, when you go out for your cup of tea, you can read
Sasanet it is a value and telecommunications business.
Also to add to that, Bwana Chairman, I have a copy from Ministry of Co-operatives proving to
you that it was duly registered, I have a data base which has no Identification numbers, part of
the Committee that fueled the Sasanet investor and we are willing to meet you in any other
forum. If you give me your business card, I will call you and tell you where I will give you the
data. The matter is with the lawyers – there was a Gazette Notice on 23rd, this Monday. They
have been given 21 days to appear in Court and if they do not, the judgment will be passed there.
We hope and I say, I am an investor like them and others, we will get back our money. I know,
and I believe, up to date, Thank you Bwana Chairman, and with your permission, I wish to
surrender the document to you.
Amb. John Mukuriah: Thank you very much, Mr. Mwangi. These are very painful stories.
Now, this time is for a lady. Kuna mama anataka kuzungumza, any lady here?
Mr. Boniface Orwa: Habari yenu? Mimi naitwa Boniface Orwa Andere, na mimi niliingia
kwa Clip mwaka wa 2007, mwezi wa tatu. Nilipelekwa na mwingine, saa hii ni marehemu,
alikuwa anaitwa Karendi. Sijua kuwa walikuwa wameweka pesa mahali gani na nini walikuwa
wanafanya, sikuwa nimejua. Nilielezwa maneno ya faida na nikaenda nikachukua mkopo kwa
Report of the Taskforce on Pyramid Schemes
313
hizi micro-finance na niliweka a total of Shs.313,000. Nikapewa faida ya miezi tatu na Circuit
ilienda na zikapotea. Pesa zingine nilikuwa nime-split mara tatu. Pesa moja, Shs.136,000/-
nilipewa faida yake mara tatu, Shs.150,000/- nilipewa faida yake mara moja, halafu 28,000/-
niliweka ya mwisho, hiyo sikupata chochote na baadaye ikaenda ikazama. So, siwezi sema
najua whereabouts ya hawa watu na watu wenyewe, na nini, but the Contract nilifanya ikakuwa
hivyo. Form ilikuwa ina-signiwa ya lawyer, but I cannot recall ilikuwa ni lawyer gani and they
were to remain with the copy ya huyo lawyer. Lakini forms zili nilikuwa ninapewa na kila kitu,
hizo nafikiri niko nazo hapa. Hizo ndio nawajua Clip na vile walikuwa na pesa zangu zile
zilikuwa ziko huko.
Amb. John Mukuriah: Thank you. Umefanya registration yoyote?
Mr. Boniface Andere: Sijafanya.
Amb. John Mukuriah: Oh, you will; okay, remain seated, they will call you. Next person, if
there is a lady.
Ms. Josephine Njenga: Habari zenu? Kwa majina naitwa Josephine Wambui Njenga. Mimi
nili-invest na watu wengi sana – I am a civil servant. Nili-invest na Clip – Shs.300,000/-. I
invested with DECI – Shs.125,200/-. I invested with Magnon – Shs.50,000/-; I also invested
with Denmar Shs.83,000/-. I also invested with Montblanc – Shs.310,000/-; Goldweb –
100,000/-; Pesa Net – Shs.10,500/- but I never got any money as interest on all of them.
Amb. John Mukuriah: Total?
Ms. Josephine Njenga: Shs.988,700/- in total.
Amb. John Mukuriah: Pole sana. We have taken note, pole. Nest person, please? Come
forward, please mama.
Ms. Benta Ochanda: Good morning? I am Benta Ochanda. I invested with Clip in February,
2007- Shs.500,000/- and I was supposed to get interest of 10%, giving me an interest of
Shs.50,000/-. I only got Shs.99,000/- as interest and that was the end of it.
Report of the Taskforce on Pyramid Schemes
314
Another one was Circuit where I invested Shs.78,000/- in February, 2007. That one I only got
interest for three months and that was the end of it. So, it is my prayer that you are going to try
your best so that we can get our money back. I got this money as I retired from a company I was
working with and I had worked for 40 years and then I lost it like all. I have not registered.
Amb. John Mukuriah: They will call the number, so just remain seated. Right at the back;
please come forward.
Mr. Peter Maitha: Asante sana Bwana Chairman na investors wote. Mimi nilifanya
investment na Business Community--
Amb. John Mukuriah: Name, please; na utuangalie.
Mr. Peter Maitha: My names are Peter Irungu Maitha. Ya kwanza nilifanya investment na
Prestige ambapo niliweka pesa Shs.10,000/-. Walikuwa wamesema mtu atapata kiwango mara
tatu ya hizo pesa. Nika-invest na Horizon – Shs.50,000/- ambapo wao walikuwa wamesema,
utapata mara tatu kama pesa ya kwanza. Tena nikaenda kwa Business Community ambapo hao
walikuwa wanakulipa kwa 16%. Sasa vile ilikuwa ya miezi sita, nilikuwa nipate kiwango cha
Shs.16,000/- ambapo sikuzipata. Hizi makaratasi zote zimesigniwa na Wakili. Huyu Wakili hata
nilijaribu kumpata, sikumpata. Sasa mimi ningeuliza, mtusaidie mpaka hizi pesa tutakapo--
kwa sababu hizi pesa tulienda kukopa na hata hizo mkopo mpaka wa leo tunaumia kuzilipa.
Asanteni sana.
Amb. John Mukuriah: How much did you invest in Kenya Business?
Mr. Peter Maitha: Shs.70,000/-. Ronald Okonja was the advocate.
Mr. George Ogera: Hamjambo? Kwa majina naitwa George Opiyo Ogera. Nili-invest na
DECI. Nilipeleka Shs.23,000/- na wakaniambia hiyo 23,000/- utapata mara ya tatu.
Wakaniambia baada ya two months, niende nichukue pesa. Niliingia huko tarehe 14, February,
2007. Sikuona kitu. Nilingoja, wakaniambia nikienda, wewe enda tu ungoje, pesa bado
hatujapata, kuja tarehe fulani. Tarehe hiyo nikienda, wananiambia enda tena, ngoja tarehe
Report of the Taskforce on Pyramid Schemes
315
fulani. Haya, nikangoja. Ikifika tarehe hiyo nikienda, tena njoja tarehe fulani. Wakati wa
mwisho, nikasikia kwamba hiyo kitu sasa imekatwa, haiku.
So, sitaki kuongea mengi; vile mumefika hapa, Bwana Chairman na ma Kamati wako wote,
tafadhalini mshugulikie halafu tupate hiyo hela; kwa maana, hata omena ni samaki, matumbo
pia ni nyama, thank you.
Amb. John Mukuriah: Asante, asante; tumeshasikia. Na tuko na Hansard; we are recording
this through the Hansard. You can see the lady at the back there, we are recording. Mkiona
hatuandiki, iko tu kwa record. Okay, mama.
Ms. Consolata Waweru: I am Consolata Waweru. I am an official of the National Pyramid
Initiative. I invested Shs.500,000/- in Sasanet and Shs.200,000/- in FINO. There is something I
wanted to tell my fellow investors. I am one of the people who have really moved all over the
country, trying to put some pressure and to sensitize the fellow investors that we need to do
something about the investment. Now, I am afraid that there is a group amongst us that think
that the kind of work we did last year and a part of this year should go into the drain because we
have a disagreement. You remember, those of you who found me in the office, we were
preaching one gospel. I remember Pastor Kariuki, Mr. Kinyua and myself and other officials, we
had one gospel we were preaching and that was, when the Task Force comes, something will be
done about recovering your money.
Somewhere down the line, last year, we disagreed with the officials because when the Task
Force was constituted, some fellas felt that now that they are not in the Task Force the
registration you have been bringing will be cut off. That is why you see there are some things
happening here and there, articles appearing in the Daily Nation; and I want to tell you and tell
others that the way forward is what the government has done. We collected money from you,
you supported the initiative, and that was very good of you, but we were acting as a pressure
group or like mediators. At this point now we need now to stay aside and see what the
government will achieve through this.
So, the kind of things that are going on to somehow distract the government from what it is
doing for the Investors. I am a close associate with those people and now I am here, I am not
Report of the Taskforce on Pyramid Schemes
316
malicious, but two of them – the main guys – are not Investors. They have no proof of any
money they have put in the pyramid investment. So, they do not have your interest at heart. If
you ask Mr. Kinyua whether he has invested any coin in the pyramid, he has nothing to prove.
Therefore, I want to tell you, be careful, may be the interest is in the registration money you are
giving them, but they have no interest of you recovering your money.
I would also urge the government to do something. Personally, I like doing things out of
conviction. Up to the point we collected the one hundred shillings, we were able to put some
pressure and that is why you can see the work that is in front of you. And I think that was just by
you. We went all over the country – personally I went through the Mount Kenya region and the
gospel was, like John the Baptist, ‘when the Task Force comes’. In my office, whenever there is
something in the media, when the Hon. Minister Nyaga has spoken anything about the pyramid
money, Kariuki was telling us to cut that piece of paper and put it somewhere on the wall –
because the message was, ‘when the Task Force comes’. I have met them this morning and I
was actually here the day before yesterday and I could see the kind of drama happening. I want
to tell you Investors, let us turn. I do not think if you did not put any money in these pyramids,
you actually care whether people would be paid or not. But if at all I can tell I have a way of
recovering the money and bring, if I have it.
I have gone throughout the country and I know what it means to see people who are suffering;
old women. In Meru I is where I remember old women who sold their cows. I sometimes in the
office could not dare take the Shs.100/- from people who would come all the way from Kiambu,
Gatundu and all that. It broke my heart. And up to that juncture, I was convinced they are doing
the right thing; but somehow, we disagreed, becaue we could not understand why we can destroy
what we have really worked hard to create.
I think the government should do something to stop this collection of money. God bless you.
Amb. John Mukuriah: Thank you very much, Consolata. We were talking to the fellow
victims and it is important that when one of you speaks to you, you listen to what they are
saying. As a Task Force, we know there are initiatives which are collecting money from the
victims; so, we are also going to subject them to investigation. We are saying this publicly –
we know about the National Initiative lead by Mr. Kinyua, we are also subjecting them to
Report of the Taskforce on Pyramid Schemes
317
investigation, because it is important that we do not destroy some pyramids and create other
pyramids, you know. Kenyans are very imaginative as you know. So, thank you so much,
Consolata once again and we want to let you know that we are taking action – we are going to
also investigate the initiatives. Let me also say that, as Consolata put it, we are also benefiting a
lot from the information collected by some of the initiatives. So, not all the initiatives have have
been negative. Some of them have been positive and we are going to investigate those which
have been exploiting their members. So, thanks so much. The next person?
Mr. Peter Kinuthia: Mine is just a question. I invested with Clip – Shs.100,000/-. My name
is Peter Kinuthia Muchiri.
Mr. Peter Kinuthia: I have been outside there at the desk to register but I have been told that I
am late and the registration there is finished and I have been advised to go to Nyayo House 10th
Floor to do the registration. I just wanted to confirm if that is in order.
Amb. John Mukuriah: Well, Nyayo House is another registration center although I think if it
is convenient for you to register at Nyayo House, you can do so, but if it is also convenient for
you to do it here, you can do it. Do you want to make any comment, Mr. Gichuki? Let us get a
clarification from the Secretariat, please.
Mr. Philip Gichuki: Thank you, Chairman. What we are doing here, ladies and gentlemen, we
are registering from—tulianza jumanne – Tuesday, Wednesday, Thursday for kikao cha Railway
Club. Hiyo ni mwanzo; nilikuwa nimesema hapo nje ya kwamba, registration is continuing –
hata tukimaliza leo, kwa watu wa Nairobi mtaenda Nyayo House, vile hamna district – hamna
ma-ofisa kwa district. It is 12th Floor, room 12. Ukiingia hapo, utahudumiwa vile unahudumiwa
hapo nje. Tofauti ya leo Bwana Chairman, ni kwamba, tulipotangaza, watu wengi walienda
Nyayo House, na nafasi ya Nyayo House unajua ni corridors. Saa hii nimepigiwa na Officer
wangu ya kwamba nafasi iko sasa kidogo. Msiende nyote tena mkute pia imejaa. Registration is
on-going. Ile tunamaliza leo Nairobi ni Public Hearing ambao mnaendelea nayo sasa. Maelezo
ya public hearing musikie zaidi, mahali imeandikishwa pale hearing itateneka. Kama vile
madam amesema hapa, ile maneno yote ya kutoka kwa roho, hungeandika kwa kartasi,
tunaelewana hapo? Tunaenda Kenya mzima, all provinces, na mkiangalia hapo nje, iko kartasi
ambao unaweza pata photocopy; ilikuwa kwa Nation ya tarehe 19 last week lakini watu wengi
Report of the Taskforce on Pyramid Schemes
318
hatukusoma gazeti. Kwa hivyo, Bwana Chairman, registration is on-going na mwezi wa tatu
tutakuwa tuna-register. Remember, you must leave photocopies of your documents, thank you.
Amb. John Mukuriah: Thank you, Mr. Gichuki. If you are holding numbers 21 – 30 please
go for registration. Na tunaendelea; muende pole, pole ili tuendelee. Unataka kuzungumza?
Mr. David Bitok: Kwa majina mimi naitwa David Bitok na I have come all the way from
Kitale na nimekuja na watu watatu ambao tuko pamoja na wao mahali hapa. Muwekeni mikono
yenu juu – pamoja na huyo mshosho, tumekuja na yeye kutoka Kitale. Kuja kwetu, tumesikia ya
kwamba kuna Task Force ambao imeanzishwa na serikali. Na hiyo tuliona kwa runinga sisi
wote. Vile tukisikia kwamba wako Nairobi, sisi wenyewe tumejileta tujue kwamba sisi watu wa
Trans Nzoia – mimi ni Co-orindator wa initiative, National Pyramid Schemes Initiative – Kitale,
Trans Nzoia yote. Mimi mwenyewe nilikuwa ninaandikisha watu kule Kitale. Na watu
wamekuwa wakiniuliza maswali kuhusiana na Task Force na wengine wanasoma kwa gazeti
wananiambia ya kwamba Task Force hawako pamoja na initiative na imekuwa ni mashangao
sana kwasababu tulikuwa tunaamini kwamba initiative wanafanya kazi pamoja na Task Force.
Lakini sasa vile imefika ya kwamba Task Force inafanya mambo yake kivyake, Initiative iko
kando pekee yake. Leo nilikuwa mahali hapa na wenzangu ambao tumetoka Kitale – huyu
mshosho ambao analea wajukuu, amewacha kule wajukuu hawana chakula yoyote. Sisi
tumekuja all the way from Kitale – tumefika asubuhi ya leo. Lengo letu tumekuja mahali hapa,
tulitaka kujua kwamba hii Task Force ni Task Force aina gani. Kwa sababu tumesikia
Commissions mingi ambao zimeanzishwa na Serikali. Kulikuwa na Commission ingine ilikuwa
inaitwa Anglo leasing, Goldenberg, kulikuwa ya Kriegler Commission, lakini yote, mambo
inafanywa uchunguzi na baada ya muda, hakuna chochote kile inatokea. Tumesikia ya kwamba
hii Task Force itafanya kazi kwa miezi mitatu. Swali langu, baada ya miezi mitatu hii ikisha,
kwa sababu sisi tumeteseka.
Mimi niliweka pesa zangu katika DECI; niliweka pesa zangu Shs.450,000/- na hiyo kwangu ni
mamilioni ya pesa. Mwengine anaona ni pesa kidogo lakini kwangu ni mamilioni ya pesa. Mimi
niliuza shamba yangu. Kwa hivyo mimi nasema ya kwamba, hatutaki Task Force ambao
wanajitokeza ili kufunika maneno; baada ya muda chache, delaying tactics; baada ya three
months, unaambiwa uchunguzi bado inaendelea. Tunataka Task Force ambao baada ya hii--
kuna watu ambao wanaendesha magari makubwa kubwa, sijui kama hii Task Force iko na nguvu
Report of the Taskforce on Pyramid Schemes
319
ya ku-prosecute wale watu ambao walitunyang’anya na saa hii wanaendelea na waki-enjoy
themselves hapa Nairobi. Sijui kama nyinyi mko na meno ya kukamata hawa. Hatutaki Task
Force ambayo haina meno. Lakini tunataka Task Force baada ya three months, kuna kitu
ambayo inatokea.
Amb. John Mukuriah: Thank you; ngojea kidogo. Thank you very much. We have heard
you. Just before I give the microphone to the Chairman, let me tell you a few things:
One, you have said you are the representative of the National Initiative. This Task Force was
actually launched on the 9th February and when we were getting launched, the National Initiative
was represented in the launch – your own Executive Kinyua and the group. We were told by the
Minister was to work with the Initiative. They were the very first people we called forward and
they came up, they gave us some documents; they have not given us all the documents, but they
have given some documents and they have also accepted to co-operate. So, basically we are
getting information from the Initiative and the Initiative.
The Initiative has also written to us a formal letter which we have in our records to say that they
support this Task Force. So, basically, I think it is important that your own organization should
let you know that we are working together. That is exactly what I wanted to say, but let me give
this to the Chairman so that he can make further clarification then we continue. Thank you.
Hon. Francis Nyenze: Thank you. It is like the Ambassador has answered you, I wanted to
clarify; National Initiative that you sort of lead in Trans Nzoia, is it related to this one of Kinyua?
Hon. Francis Nyenze: Good. What I can tell members is that we as a Task Force when we
were launched, and you should have seen there in the TV, Kinyua was there and he even
commended it. We invited him because he had a lot of information in the flash disc, hard copies
and so forth. So, we have gotten a lot of information from your National Initiative. We also held
discussions with him and Pastor Kariuki and all the other officials and we have agreed to work
together. But, after agreeing, Kinyua came here, protested and complained, because the Minister
never put him in the Task Force. But now, we said we do not have mandate to put Kinyua there;
it is either the Minister that has that power. But, we will continue co-operating. What we do not
Report of the Taskforce on Pyramid Schemes
320
want is confrontation because Members are suffering. We thank you for the work that you have
done, but as Consolata said earlier, we also do not want the National Initiative to keep on now
collecting money from people because now there is a Task Force that is free and these private
Initiatives; National Initiative and the others do not have the mandate, the only body that has a
mandate is the Task Force. So, the best thing is to co-operate with us, give us the information
and we will work to deliver; it will not be like any other Task Force. We want to deliver, we
believe we will deliver and that is exactly what you do. But we have also told Mr. Kinyua and
his National Initiative that once – because Members have also complained to us that they have
been asked to contribute besides the Shs.100/-, Shs.2,000/- and they are paying. So, we also told
Kinyua that after we go round – because we do not want Members to keep losing money – we
will also investigate. We will look at your books to see how much you have collected and you
account for it; because we do not want, in the process, to form another pyramid scheme. Sorry
for the people who have moved from Trans Nzoia, Kitale – it is quite a distance. When you go
back, tell them, you do not have to come to Nairobi now; we will be in Kitale/Eldoret at a date
that the Secretariat can tell you. Let them wait for us there, we will come there. We will be in
Nyeri, Meru, Kisumu, Mombasa; we will move everywhere because we want to collect data the
way we have collected here. But, we do not want the National Initiative of Mr. Kinyua to
interfere with the running of this Task Force because it is independent. We have given them
enough time and I think the fear and the jittery, is because we told them, if you have collected
more money than Shs.100/-know that we will investigate you. Also, the frustration that he was
not included in the Task Force. If we power, we would have put him somewhere, but we do not
have power. All the power we have is, look for that money from the poor man and make sure
that it is returned to the Investors and that is what we want to do. So, these private initiatives
please co-operate instead of being confrontationa.
The other time, it appeared in the press that Kinyua walked out; he never walked out and those
members some are here today. They came with him and he wanted to cause drama, call the press
and then he spoke and then he said, I have moved out because I have no confidence in you. He
walked alone; the other members refused after they knew the truth. So, co-operate with us
because members have really suffered. They have lost so much money and we have come here
because of desperation – because you have suffered so much. Please, because this is the only
remaining bridge for you to get the money, give us the support and do not doubt that these
Report of the Taskforce on Pyramid Schemes
321
reports will remain somewhere. We will do the best and God will be our judge and He will do
whatever he can do.
Amb. John Mukuriah: Thank you very much, Mr. Chairman. I think the situation has been
done. So, we want to proceed. So, when you see Mr. Kinyua, tell him to give us all the
information because if he fails to give the information, he will not help the members and this is
the last forum. Because what do we do with the information after this Task Force is wound up,
what do you do with it? Thank you. Next?
Mr. Natolo Nyamai: Good morning, my fellow Investors, the Chairman of the Task Force and
the Members; nawasalimu. Kwa jina naitwa Natolo Nyamai. I invested with one organization
that called itself Christian Literacy Investment Plan (Clip). What pulled me to Clip was the fame
that I heard about it when I was introduced. I did not know how for long it had operated. I went
to Clip in 2006, January. That is when I put in my first investment in Clip. Then, they were in a
humble place somewhere in the City and they were going by the name of publication – they were
publishing books. Before joining I had to buy a book. I was convinced that the books were able
to bring enough money per Investor to reap the benefits that I was promised. So, I bought books
and registered. My first investment with Clip was Shs.100,000/- in 2006. I did sign a form – I
do not know whether you have seen the registration forms for Clip. The director by then was
someone by the name Peter A Ndakwe; I do not know what A Ndakwe stands for. I was never
able to know who other directors were. But, I did benefit up to the point that my principal sum
was returned to me. So, I did get back my principal. That, I was thinking that this was
something that was genuine, so I put back the principal. I went and told my wife this thing is
true and it is good. So, she had some money that she was refunded after her studies; na mimi
nikaongoza mke wangu wapi? Kwa Clip.
That is 2006 up to December. I put back the principal, I sold a piece of land for my studies and
put some of the money there, together with my wife. By December, 2006, we had put in
Shs.550,000/-. I did get; my wife and I we operated then a joint account with Co-operative, we
did receive the sum of the interest. The interest that was being earned was at 10%. So, yeye na
Investment yake na yangu, we managed to get back, to the best of my calculation, 145,000/- until
the government cracked, as it were, Clip. The information that I would get from Clip offices, by
then they had moved from town and went to-- was it Runda or-- Kitusuru.
Report of the Taskforce on Pyramid Schemes
322
Mr. Natolo Nyamai: No, no, first they went to Kitusuru then because of the number of people;
I was told that Waheshimiwa ndio wanaishi kule and they did not want to see small people like
us. That is the explanation the directors in Clip gave us; ndio wakaenda South C. Sasa kule
South C tukaona kuna nyumba yenye iko na maneno mazuri sana. Tukajua hii kitu inapita
kweli? So, we were made to believe that they were here to stay. So, we went and brought in our
friends, in the city and nyumbani. Nyumbani nikawambia, hapa iko kitu kizuri, I introduced
many friends. Some of them were able to get back their principal – they invested until they
could get back the amount invested, but then they would return it.
So, my total investment, me and my family was Shs.550,000/-. I was able to get back
Shs.145,000/-. So, from Clip, I am asking that they give me, according to the promise and the
agreement, they give me Shs.405,000/-. Thank you very much.
Amb. John Mukuriah: Thank you. Yes, please-- ngojea kidogo.
Mr. David Oduol: What action have you taken so far?
Mr. Natolo Nyamai: As an individual, I did go to Central Police Station to follow up. I got
word from friends that you can take up the matter with the CID. I went to Central Police, I was
given a name of the CID Officer dealing with Clip. But then somebody told me, wait for (I
cannot remember his name, pardon me). But that is the far that I could go.
I want to submit, I became cynical, I could not give anybody money, who was claiming that he
would follow it up on my behalf. So, I tried with the CID and never got even to meet the person
who was supposed to follow it up. After that, I stopped and started praying. I came once for a
meeting that had been called in the Press for people to meet at the Clip offices – there are people
who were lobbying – asking people to come and push it. I came there, I was not satisfied with
what was happening. I went home and kept quiet.
Amb. John Mukuriah: Thank you very much. Sorry for that, next person? Wacha tuwe na
mzee huyu hapa mbele.
Report of the Taskforce on Pyramid Schemes
323
Mr. William Mwangi: Kwa majina naitwa William Mwangi. Mimi nili-retire kutoka Post
Office. Yangu ilikuwa, baada yak u-retire, nikawa family bado wako, nikaambia bibi, hii
mambo vile naona inaenda, wacha tuweke pesa kidogo pale, uwa unachukua kwa jina yako, kwa
kuwa mimi mwenyewe nitaanza mambo ingine yangu ya kutafuta pesa. Nikamwekea
Shs.250,000/- kwa Clip. Nikamwambia, sasa wewe ndio utakuwa ukienda ukichukua kwa kuwa
saa ingine naweza kwenda nje, kazi ni ndogo, ndogo hivi. Baadaye tukakaa nikaona akachukua
mara mbili na tatu, nikaona hii mambo inaendelea mzuri na kijana yangu ako pale, atamaliza
Form Four – nikaongeza Shs.201,000/- tena kwa number ingine. Nikamwambia, hii ninataka
kijana yangu akimaliza Form Four, imsaidie kuendelea. Baadaye ille ya kwanza tukakula kidogo
na nimeongeza ingine, ikafika mahali zote zika-collapse. Sasa saa hii tunaongea, mimi ndio
nimeweka pesa, lakini bibi nimekuwa hospitali – nyumbani, hospitali – nyumbani akawa hawezi
simama, ingawa yeye pia aliweka pesa. Kijana naye angekuwa university, saa hii yuko kwa
nyumba. Watoto wale wengine sasa shida ni hapa na hapa, sasa ninajaribu kukimbia juu chini
nione survival ya family. It is around nearly Shs.450,000/-. Sasa pesa kama hiyo na ndio
tulipata kidogo pale, nikaweka hapa, na imekimbia kwa mfuko ya mtu. Sasa unashindwa na hii
Clip walisema ni mambo ya dini, hii mtu ambaye anaitwa Andakwa, kitu kama hiyo. Tukaona
hii mambo inahusiana na Christian hakuna uongo. That was the end of it to my surprise, pesa
ikawa imepotea from 2006 up to date. Halafu kufika hapo nikawa confused, ikawa sasa mimi
pia nikashtuka, family itafanya nini. Bibi already ni mgonjwa, hospitali – hizo pesa napata
kidogo namkimbiza hospitali, namrudisha. Saa hii mimi nakuja kuandikisha kwa jina yake kwa
kuwa yeye mwenyewe hawezi kufika hapa. Yangu ni namna hiyo, asanteni.
Amb. John Mukuriah: Pole sana; tumeshika hiyo yote. Next.
Mr. Edward Simiyu: Nawasalimu wakubwa, Mwenyekiti na wana Kamati na wadhiriwa
wenzangu. Kwa majina naitwa Mhubiri Edward Simiyu kutoka Kwanza district, Trans Nzoia.
Mimi nilikuwa nafanya na Provincial Administration kama karani wa DC; nikaenda retire ya
Golden handshake, nikapewa pesa, nikanunua shamba acre tano. Maneno ya DECI ilipoingia
niliuza shamba yangu yote. Niliweka pesa Shs.360,000/- ili wiki sita nipate shamba ya kuweza
kutoshana na family yangu – watu 14. Pamoja na hayo nikiwa mhubiri, nimetembea kwa
makanisa nyingi ndani ya Trans Nzoia huko Kacheliba, Kanyarakwet, mpaka Milimani, watu
wameumia sana.
Report of the Taskforce on Pyramid Schemes
324
Na ninaomba, Bwana Mwenyekiti na Kamati yako, hata enzi ya kwanza Mungu alikuwa nchi hii,
aliuliza Abel, ndugu ya Cain, watoto ya Adam. Mimi nimekaa na ninasikia kilio cha ndugu yako
ndani ya masikio yango, je, ndungu yako iko wapi? Wewe ukiwa Abel, Mwenyekiti, hawa
wadhiriwa ndio Cain, je, pesa ya mandugu zako iko wapi? Mimi nikiwa mhubiri nikiwa kwa
jokua hua naubiri na ikifika wakati fulani ninaulizwa, wewe ulikuwanga mbele kwa mlango
wakati tunalipwa pesa, pesa zetu iko wapi? Ninajibu maswali mingi sana. Kwa hivyo, kitu cha
kwanza ningetaka kujua, Kitale mtafika siku gani, nikiwa kanisani niandae watu.
Kitu kingine, kilichanika kikundi ya kuchukua loan katika hiyo makanisa zangu. Wakachukua
loan, wanunue ng’ombe wakipeleka Kenya meat kama mganda. Wili hii fulani, wiki hiyo fulani.
DECI ilipeleka pesa mamilioni ya Pokot, ambayo mimi nawahubiria. Wengine waliua wengine
shauri wewe nido ulikuwa mwenyekiti ya hii pesa; wewe ndio ulifanya namna hii watu
wamekufa.
Jee, Bwana Mwenyekiti na Kamati yako, mtu aliaga kwa ajili ya hii pesa, na amewacha receipts,
utamsaidia namna gani? Kitu kingine, DECI imeenda na pesa; Tukakaa kwa
hema, kwa DC, Kwanza, Endebess – ndani, nyeupe kama hii ukuta. Bwana Mwenyekiti, una kitu
gani ya haraka ya kuweza kusaidia muhadhiriwa mwenye tabu aina hii ? Nikirudi huko, mimi ni
kama mjumbe, naenda kujibu maneno ndani ya makanisa.
Kwa hivyo, tafadhali, aliyechukua hii pesa, ni kidogo tu. Nilikuwa naona licence ya mtu
imewekwa kwa ofisi yake. Polisi alikuwa anakaa mlangoni hapa na bunduki ya serikali
akilinda pesa zetu. . Mwingine alisema msiwe Kamati zenye haina meno. Hii mtu kwanza
ashikwe; Wapokot wananiuliza, huyu mtu anaitwa Donde kwake Nairobi ni wapi? Sisi
tunataka kwenda. And you can imagine Pokot inatoka Busia (K), Pokot anakwenda
Karamojong in Uganda kuiba ng’ombe na anaenda, Samburu wanabeba ng’ombe kupita ndani
ya security. Huyu Donde yenu, nyinyi hapana kamata huyu? Tukisema nyumba yake ndio hii,
Donde atabaki Nairobi? Kwa hivyo, tafadhali msikuwe muandike tu maneno, mwengine a-
report ya kwamba Anglo Leasing, halafu tena mnyamaze; simu zenu hatujui. Maanake, kwa
kanisa tutaulizwa, je, wale watu ulienda Nairobi tena walinyamaza; nitashindwa cha kujibu.
Mbarikiwe na haya machache na Mungu aliye-- La mwisho, Zakayo alikutana na Yesu; mimi ni
mhubiri – alipokutana na Yesu akasema, eh Yesu, mimi ikiwa kuna mtu nimenyang’anya
Report of the Taskforce on Pyramid Schemes
325
chochote, ati nitamlipa mara tatu, alisema nitamlipa mara nne. Kwa hiyo, wewe ukiwa
mwakilishi wa hizi fedha, wacha huyo mtu alipe hawa watu hata zaidi ya mara tano.
Amb. John Mukuriah: Asante. Chairman atazungumza machache halafu tuendelee;
Chairman.
Hon. Francis Nyenze: Asante sana na nimesoma mengi ukiongea Mhubiri kwa sababu
umefanya mingi na sikujua kama hata huko Pokot DECI iliingia na ikachukua pesa. I am so
surprised – kila mahali Kenya.
Mr. Edward Simiyu: Wakatuambia sisi ya kwamba, leteni pesa, Mungu anakujia hapa
(laughter) . Na kweli pesa zile zilikuwa za kwanza, elfu mbili, elfu tatu, watu walivuna
wakafurahi sana, ama sivyo? Lakini ilipofika kuuza ma elfu mia mbili, mia tatu ya ng’ombe
kupeleka Kenya Meat.
Hon. Francis Nyenze: Asante sana na pole sana. I think tutajua mengi zaidi tukitembea huko
Eldoret na Kitale kwa sababu nimeona this thing is so widespread. But what I can tell you, we
will do the best we can and I am sure-- unajua hizi zingine Task Forces, Commissions za
Goldenberg na nini, ilikuwa corruption ya kuibia either serikali ama nini; but this one ni kutoka
kwa rahia wenyewe. That is why this one will never die out – whether these Commissioners
achieves it or not, the people of Kenya will not keep quiet because they have lost so much. Kwa
hivyo, this Task Force will achieve and I am assuring you, Pastor, hata ukirudi huko, we will do
the best we can and I am sure you will get the results na just assurance; that we will be different
and above all else, we trust God. We are also victims here. We trust God to see us through.
Mlisema mtatuombea?
From the Floor: Yes.
Hon. Francis Nyenze: We do not want anybody compromised; we would rather say, we cannot
do it; but we will do a good job. With regards to people who are involved like George Donde,
like others, you know, we may not say here, but we have been to Kenya Anti Corruption
Commission, we have been to Central Bank of Kenya because Central Bank is the one that
regulates all the other banks, where this money was going. So, we have been there and we have
Report of the Taskforce on Pyramid Schemes
326
told them we want to know how many accounts were frozen, how much money was there; that is
one thing
We talked to Bank Anti-fraud – you know that Unit that deals with fraud – we also asked them,
these accounts, do they operate? What have you done? And as I told you earlier, we have also
been to Kenya Anti-corruption Commission; the give us information – this was this, this was
Clip – it was like this. This was DECI, these were people running it. So, we have information.
All we wanted is for you to give us further information to see the enormity of the matter so that
when we write our final report, we do not spare anybody, whether it is a Minister sitting in the
government today, whether it is a billionaire like those ones, we will never spare anybody, we
will say the truth. Mnanisikia? So pray for us, because we want to put the record straight. Na
hata hivyo Mungu anaweza kutuona; these were poor people, some have committed suicide,
some have divorced, some have their children at home, they cannot go to school. Na mtoto
unamtoa kwa shule mzuri because you were not a poor person that time, unamlete shule ingine,
hataelewa. Na wengine hawana chochote, because they lost – like that man, he retired, golden
handshake yote uko. So, I am so sorry but I assure we will do a good job. Thank you very
much, Pastor.
Amb. John Mukuriah: Thank you, Chairman. Tutaendelea. Pastor, ngojea kidogo tupate mtu
mwingine, tutakuja kwako, wewe pia utatuombea kwanza; ngojea kidogo. Mpatie shosho
azungumze kidogo – shosho chukua. Asante.
Shosho: Nimeshukuru kwa kunikaribisha. Mimi natoka reserve na nimeshukuru sana, asante
kwa ukarimu wenu. Mimi natoka Saboti, mimi nilikuwa na Chama ya Wamama wale yatima –
wale wanaume wao wamekufa na tukafanya chama yetu na tukapanda miti na kuuza.
Nilipoenda town, tukapata report ingine ati kuna pesa ingine wanapanda mimi nikasema,
pesa inapandwa kama mahindi? Akasema twende tufunze. Nikaenda nikasikiza. Niliposikiza
nikaenda kuambia wanachama. Wakasema sasa ile kidogo tuliweka kwa bank enda uchukue
tupeleke huko. Mimi ndio huyo, tukaenda tukachukua, tukapeleka huko. Na mimi nikachukua
yangu, nikapeleka huko. Kwenda kidogo siku ya siasa mtoto yangu akakufa – aliuwawa na
alikuwa anafanya campaign, anafanyia Youth na Ma-councillor. Yeye aliuwawa huko kwa
pombe. Na yeye ni mtoto yangu macho kiume, na wasichana wawili.
Report of the Taskforce on Pyramid Schemes
327
Vile alikuwa anakufa hivyo, tulikuwa tumechomewa manyumba; tukaenda kwa kanisa ya
Catholic tukamaliza miezi tatu. Tukatoka huko, ndiyo siku ya campaign ikaingia na mtoto yangu
akakufa. Sasa hiyo pesa naye sikupata. Wamama walinirukia, hata ndio mnaona nakonda hivi
jameni. Mimi naenda kwa mkubwa kuuliza, pesa ya wamama iko wapi? Wanasema sisi
tunakimbia kwa serikali, pesa imeshikwa. Niliposoma gazeti, wakasema serikali yetu inatembea,
wameandika watu wengine wanaitwa Task Force – ati hao watu ndio wanachunguza shida ya
watu hata nyinyi masikini, wanachunguza; sasa kaa tu hapo. Wakasema hizo mkutano iko.
Mimi nilikimbia kwa mkubwa tena, nikasema nami niende nisikie kwa sababu hawa wamama
ulienda kusikizana na mkubwa town.
Sasa, wakanikubali wakasema, pesa itatoka wapi. Nikasema, wacha niende nikope na mimi
naweza kuja. Mimi nikaenda kukopa Shs.1,200/-. Naona wanasema wanakuitia hapa shilingi
ngapi. Mini ndio huyo, nikaenda kwa mkubwa, nikamwambia nimepata. Akasema kama
umepata ni mzuri. Sasa tumekuja, shida ambaye niko naye ni kwamba, hata watoto
nimewawacha; iko mtoto namna hii ambao waliniwachia mkubwa na wale wengine – watoto
yote niko nao. Moja nimepeleka kwa Sister Frida, yeye ananilindia huyo alikuwa mdogo.
Sasa mimi naomba nyinyi serikali mtusaidie, wamama hawa hata mimi nikienda huko niende na
report mzuri ndio roho zao izipoe. Hata ingewezekana, mngeweka hii kwa radio, ili wakisikia
waseme, kumbe alienda kusikia mzuri. Hiyo ndio yangu tu, nimeshukuru.
Amb. John Mukuriah: Shosho, ulipoteza pesa ngapi? Hiyo kikundi ya akina mama, mlipoteza
pesa ngapi?
Shosho: Hiyo kikundi, iliweka Shs.10,400/- niko na ma-risiti hapa. Halafu yangu mwenyewe,
Shs.2,700/-. Halafu na yaw engine, siwezi kamata kwa kichwa, ile wenyewe walilipa, walilipa,
hata wengine wamenitupia ma-risiti, ukipata pesa kwa mkutano, ndio utuletee pesa.
Amb. John Mukuriah: Pastor, unataka kuzungumza dakika moja tu? Haya, wacha tumpatie
mama kwanza, tutakupatia baadaye, endelea.
Mr. James Omulo: Wahajiriwa wenzangu, pamoja na Mwenyekiti na Kamati yako, mimi
naitwa James Atulo Omulo. Mimi natoka sehemu za Western, nimesafiri jana nikuje hapa.
Report of the Taskforce on Pyramid Schemes
328
Nimepigiwa simu na mwenzangu ambae tuliadhiriwa nay eye katika mkasa huu, naweza kuita
mkasa. Mimi kwanza nilikuwa nafanya kazi na Telkom Kenya na nilipewa early retirement
mwaka wa 2007. January. Tulilipa pesa kidogo, sikuwa nimefika mwaka wa kupata pension,
bado nangoja miaka saba ndio niweze kupata pension yangu. Kwa hivyo, ile kidogo nililipwa,
rafiki yangu wakaja, wakaniambia kuna pesa ukiweka mahali, unapata faida. Akanielezea
habari ya DECI mara ya kwanza mwezi ya tatu, 2007. Pesa hiyo unarudishiwa baada ya wiki
tatu. Unaweza kupeleka Shs.2,000/-, Shs.5,000/-, Shs.15,000/- kuendelea mpaka-- lakini baada
ya mbili-- ukiweka zaidi, utakuwa ukiikula zaidi. Nikasema wacha nijaribu na pesa kidogo,
nikaweka Shs.2,000/-. Nikingojea hiyo, nikapata habara ya investment ingine inaitwa Circuit
Investment. Hiyo Circuit, nikapata report yake ni mzuri kwa sababu, ulikuwa unaenda na
Shs.2,000/- - hiyo ni legal fees. Mnaandikana na lawyer halafu una-invest kila ambacho
unataka lakini minimum ilikuwa Shs.78,000/- lakini vile unaweka mingi ndiyo unapata na
interest ilikuwa 16%. Nikaona hiyo ni mzuri. Nilipokuwa ninafuatilia hiyo, nikasikia DECI
imepotea na pesa ya watu. Sasa yangu yenye ilikuwa huko ilikuwa nirudishiwe, nikaenda huko,
nikakuta watu wamejaa, hawalipwi, wanaendelea tu kuambiwa kujeni kesho, wiki ijao, mpaka
wakachoka.
Kwa hii Circuit, nili-manage nikaenda nikatoa pesa yangu Shs.200,000/- nikapeleka kwa Circuit
ilikuwa hapa Koinange Street – April, 2007. Kwa hiyo Shs.200,000/-, nikalipa faida ya shilingi
32,000/- kwa mwezi. Nilikula mara ya kwanza, hiyo pesa ilikuwa tamu zaidi, mara ya pili
nikaikula. Basi kijana yangu pia nikamchukua, naye pia alikuwa amestafishwa, nikamleta hapo,
naye pia akalete Shs.200,000/-. Kijana yangu, bahati mbaya, hakuweza kukula hiyo pesa, bibi
yake ndio alikuja kukula kwa sababu alikuwa mgonjwa na bahati mbaya aliaga dunia kabla
achukue hiyo pesa. Bibi yake alipewa mwezi moja; nilienda nika-plead na hao wakamwandikia
bibi yake cheque ya Shs.32,000/- mara ya kwanza. Ilipofika 12th September, 2008, tulikuwa
tumeenda huko tukapata notice imewekwa kwa mlango, kartasi inasema kwamba, tumefunga
kwa muda mpaka-- kwa siku 45; kwa hivyo msiwe na wasi wasi mtalipwa pesa yenu. Basi
tuliweza kungoja hizo siku 45, tumengojea mpaka leo – bado tunangoja. Hatuja-manage
kulipwa. Niliweza kukusanyika watu wa Circuit, wako hapa wengi; tukaenda kortini Milimani
hapa. Tukakubaliwa kwamba tumshtaki director wa Circuit – anaitwa Emilio Kariuki. Aliweza
kushtakiwa lakini Committee ambao tulichagua, ile pesa tulisanya, kila mtu shilingi 1,000/- ya
kufanya hiyo kazi, Committee ilikuja ikakosana na hatujui ilienda wapi. Sasa hiyo maneno
ilipotea hivyo.
Report of the Taskforce on Pyramid Schemes
329
Kwangu mimi nalia tu; pesa ambao nimepoteza kwa sababu ya kijana yangu na mimi,
Shs.400,000/-. Nilikuwa nimelipwa miezi nne, halafu cheque nikapewa ingine ika-bounce.
Tulipoenda proceedings, tuka-start hiyo kesi. Bank cheque iliweza kufaulu kwa sababu nilisikia
tu lawyer Kibanga ananiitia cheque. Nilipoenda huko nikakuta ni ile cheque yangu ili-bounce.
Akakata Shs.3,000/- akanipa Shs.28,000/- na nikasema asante kwa hiyo, lakini pesa zingine bado
zimepotea huko. Hata kesi bado inaendelea lakini ilikuja kupatikana ya kwamba, wengine kesi
yetu haiku huko. Kama mimi mwenyewe kesi yangu haiku huko; ni ya watu wengine. Sasa vile
naweza kufuata pekee yangu inakuwa ni ngumu.
Kwa hivyo, mambo haya, niliposikia kwamba kuna Committee imechaguliwa na serikali,
inatembea kuangalia, ndio nimesafiri nikaja ili tuweze kusaidia. Sasa hizi niko na shida kwa
sababu ile pesa nilikuwa nayo imeisha, mtoto ako kwa nyumba – yule alimaliza form four.
Alikuwa ameitwa Kenya Institute of Mass Communication, nimeshindwa kumpeleka huko, sina
pesa ya kumpeleka. Niko hata na watoto wengine wawili candidates, wanafanya mwaka huu –
mapacha. Niliona nikipeleka huyu, hawa watakosa kumaliza. Wacha hawa wamalize ndio
nifikirie. Mwingine ako Form 1. Shida ni mingi. Vile mumesema nyumba zimevunjika, wengine
wamekufa, wengine wametoa watoto mahali walikuwa; mimi niko na hiyo shida. Kwa hivyo,
mimi naomba ya kwamba Mungu awasaidie. Mimi nimeokoka, hiyo ndio imenisaidia kusimama
imara. Otherwise, kama singekuwa nimeokoka, hata mimi ningekuwa nimeingia katika mambo
mengine kwa sababu nimepoteza Shs.400,000. Kwa hayo, naweza kusema kwamba asante.
Tunaomba Mungu asaidie haya maneno. Vile mumeanza msiwe kama tunasikia Commissions
zingine zinaanzishwa halafu hazitoi report ifike kwa public, inafika kwa ule amechagua. Hii
yenu iendelee na hata tupate report sisi ambo ni wadogo kabisa hapa, tupate hiyo report.
Asante.
Amb. John Mukuriah: Asante, tunashukuru. Kwanza mama azungumze hapa.
Ms. Emily Kavita: Kwa hao wengine ambayo wamefika, nawasalimu wote hamjambo? Mimi
nikiwa hapam jina langu naitwa Emily Kavita. Mimi nilikuwa mwalimu na sikujua hii maneno
ya pyramids mbali ni dada yangu ndio aliniambia, dada yangu mimi naona wewe vile umekuwa
mgonjwa na umepotelea pesa zako kwa hospitali – nilikuwa nimefanyiwa brain operation –
naona ile pesa utapata kwa Co-operative yenu, au kwa NSSF kwa maana utapatiwa kwa ajili
Report of the Taskforce on Pyramid Schemes
330
wewe ni mgonjwa, nikupeleke mahali utaweka. Mimi nikaona, eh, dada yangu ananiambia
nikipeleka hii pesa itakuwa times three. Nikaona hii ni mzuri, nikipata, hata kama nimepoteza
ingine kwa ugonjwa, hii itanisaidia kusomesha watoto. Mimi ni mama mjane since 1996 na
nimekuwa nikisomesha watoto wangu. Sasa nilikuwa na imani, hiyo pesa ambao nitapata kwa
Co-operative na NSSF, itasomesha watoto wangu mpaka waende university. Lakini nilipopata
hiyo pesa ya co-operative ya shule, na nikapatiwa ile ya NSSF kwa ajili ya ugonjwa,
Shs.100,000/- nikapeleka Spel, ilikuwa kwa building ambao ilikuwa inaitwa View Park Towers,
20th Floor. Pesa ingine, dada yangu akaniambia usiweke mayai yako pamoja ivunjike yote
pamoja. Akanipeleka mahali ingine ilikuwa inaitwa Global, ilikuwa Rehema House. Nikapeana
huko Shs.90,000/-. Tukatoka Rehema House akanipeleka Earning Force, sikuwa na pesa nyingi,
nikapeana Shs.50,000/-. Kwa hizi zote, hakuna ile nilipata; wakati nilifika nipate, nikapatiwa
cheque na cheques zenyewe zika-bounce. Kwa hivyo, hakuna pesa nilipata na ikaenda hivyo.
Sasa niliamua kuanzisha biashara ya kuuza cereals. Nikaanza kwenda Mwea, nachukua mchele,
nauza, na hata haikuwa inanisaidia. Sasa nimezunguka tu hivyo, na vile nilisikia the same sister
of mine akiniambia, kuna watu ambao wamechaguliwa watatusaidia tupate hii pesa yetu;
nikasema Mungu ni mzuri. Vile watu wamepatikana wale watatusaidia, wacha niende nisikie
wanasema namna gani. Kwa hivyo mimi nikiwa hapa, naomba tu nyinyi, vile Mungu
amewapatia akili ya kuweza kutusaidia, muweze kutumia nguvu zenu zote, ukaweze kutusaidia
tupate hii pesa. Kwa maana tumesumbuka nab ado tunasumbuka. Hata ukiona tukivaa smart
hivi, ni shida tu; huwezi achilia hivyo kwa maana uko na tabu. Kwa hivyo, tunaomba tu
mtusaidie. Sina mengine mengi, bali tu ni msaada naomba kwenu. Mubarikiwe.
Amb. John Mukuriah: Asante, wacha niangalie upande. Pastor ngojea kidogo. Nitakupatia
nafasi. Kuna mama mwengine?
Ms. Waithera: Habari zenu?
Members: Mzuri.
Ms. Waithera: Mimi naitwa Waithera. Niliweka pesa kwa pyramid tofauti, tofauti – a total of
Shs.221,000/- - DECI, Excellors na Global.
(Inaudible)
Report of the Taskforce on Pyramid Schemes
331
Ms. Waithera: DECI ilikuwa Shs.102,400/-, Excellors, Shs.100,000/- and Global – sikumbuki,
but the difference – a total of Shs.221,000/-.
Amb. John Mukuriah: Ulipoteza yote?
Ms. Waithera: Sijapata hata shilingi.
Amb. John Mukuriah: Ulipoteza yote?
Ms. Waithera: Yes, and I do not know, but I saw something in the newspaper about Shangilia
Baba and Mama – people are also complaining.
Ms. Waithera: Shangilia Baba na Mama – it is an investment, but for houses. I do not know
how far it is true.
Amb. John Mukuriah: Shangilia Mama na Baba?
Ms. Waithera: Yes, Shangilia Baba na Mana.
Amb. John Mukuriah: Hata hiyo utaandikisha hapo. Unajua hizi ma-pyramids zimekuwa
mingi sana. Hata hiyo tunachunguza tuone kama ni pyramid. Kwa hivyo, ukiwa na risiti wacha
tu pale.
Ms. Waithera: For Shangilia Baba na Mama ni Shs.200,000/-.
Amb. John Mukuriah: Hiyo ni Pyramid, ulipoteza yote.
Ms. Waithera: About Shs.6,500/- I have the recept.
Amb. John Mukuriah: Asante. Mpatie huyo mama tumalizane; halafu tutaenda upande huu
kwa wanaume.
Report of the Taskforce on Pyramid Schemes
332
Ms. Wanjiru Chege: Kwa majina naitwa Wanjiru Chege, nilikuwa nafanya kazi Nikawa
retrenched in January, 2007. Nikakaa na pesa yangu nikifikiria nitafanya nini? Nikaweka for
quite sometime. Then, a friend of mine came akaniambia maneno ya Kenya Business.
Nikasema wacha nitembee huko nijue ni nini inaendelea. So, I went there about 4 times.
Nikaenda wakanielezea zile maswali vile wangeweza interest, wakasema wako na biashara
tofauti. They had invested in the hospitality industry and security firms – they were importing
cars and they had a brochure saying exactly what they were doing. Wakati nilienda tena
kuangalia nikakuta CMC huko pia wanajaza hiyo makartasi, nikaona hii kitu ni ya ukweli
because siwezi kama ni mjinga pekee yangu; hata kama hawa ni watu wenye wamesoma na
ninaona pia wameingia ku-invest nikaona pengine ni kitu ya ukweli. So, I started with
Shs.30,000/-. I took my time, but nikaona watu wanapewa pesa. Finally nikapeleka
Shs.800,000/-. After that, part of the investment walikuwa wana-import magari. So, I decided
the best thing, wacha nichukue gari moja nitafute kazi ya car hire. Nikaenda nikatafuta kazi na
nikaitishwa gari. So, I went back to them. Wakasema you see, we cannot touch your
investment, what you do, because kuna magari tunauza, enda kwa yard yetu, you go and identify
the car that you want, ukirudi, tukufanyie ile hesabu, tukuambie ile pesa inatakikana ulipe ndio
uchukue gari. I actually went to their yard. Nikaenda, nika-identify gari yenye hiyo kampuni
yenye ilikuwa inataka kunipatia kazi walikuwa wanataka. I came back to the office,
wakanifanyia hesabu, nikaambiwa nilipe 284,000/- as deposit. Just when it was two days to
finish the transaction, because I had already identified the vehicle; nikaenda nikalipa pesa.
Kumaliza everything with the paper work, one of the Assistant Directors akapiga simu kwa yard
akasema, kuna mama anaitwa Wanjiru Chege, amemaliza kulipa hiyo gari kwa hivyo mteja
mwengine akikuja, waambie hiyo gari nimeuza. It was the day that I was supposed to get the
relieve letter; ni lazima ukienda kwa yard, lazima mwenye kampuni akupatie barua ya kusema
tumemalizana so that the person in the yard can release the car to you.
Ile siku sasa nilienda kuchukua barua ndio niende nichukue gari, somebody who was also
working for them; akanipigia simu akaniambia, Chege, kuna kitu inaendelea hapa. Hii gari
yako imeuziwa mtu mwengine saa hii na wameondoka. So, I went back to the office and I
confronted one of the senior managers – I think he was the Co-ordinating Manager who was co-
ordinating the activities of the company in the whole country. Akaniambia, hiyo ni makosa
kubwa sana, and what is going to happen, you accompany to the yard, I want to find out from the
Report of the Taskforce on Pyramid Schemes
333
person in charge why this has happened. Nikasema sikuachi, nataka tuende na wewe or you give
me my money back I go to another and buy a car.
Nikatoka na yeye kwa ofisi, nikaenda na yeye kwa yard. So, the person in charge akaitwa and we
had a small meeting. Sasa huyo manager akamuliza, sasa wewe unaniuliza and you are one of
the directors lakini mwenye ameuza gari ni mtoto wa Mwiki na ni Mkubwa; Mwiki ni
mwenye kampuni. Because kama ni mtoto yake ameuza, mimi nitavutwa kazi nikikataa. I
actually I went there and I found the son – it is somebody I know, nikikutana na yeye, najua ndio
huyu. Now, the director now told me what you do, just go home; I will see how best I can see
you. Naona umeweka Shs.800,000/- na hapa hii ya gari umelete na unaona shida imetokezee.
In fact he is the one who disclosed to me because they did not want other people to know.
Akaniambia, kuna yard ingine yetu iko hapa Hurlingham, enda huko – he gave me another
number because ni kama mambo yao wanafanyanga na siri – uende ukute muhidni mwengine
huko, umwambie ni mini nimekutuma akutafutie gari which is worth what you have paid. When
I went to the yard, nikakuta ni ma-Prado zimejaa huko and the only other smaller car, equivalent
to what I had paid for had already been sold out. Nikamwambia huyo muhindi tafadhali, mpigie
simu, umwambie ile gari ziko hapa ni za pesa mingi. So, when they talked, akaniambia nirudi
kwa ofisi. Sasa nikaona hapa maneno imeanza-- haiendi mzuri.
I did my research, nikajua nyumbani kwake, nikajua hata bibi yake pahali anafundisha because
ni mwalimu. So, I went back to the office – nikauliza baba Caro, ajue kama mimi ninamjua hata
kutoka nyumbani. Hakujua vile nime-- hata akashtuka sana, akasema sasa vile tutafanya,
wacha hii maneno tupeleke pole pole. Kuna gari ile nilikuwa napatiwa ya kazi, hata kama ni
mzee, wacha nikupatie hiyo gari mzee unyamaze. Nikamwambia hiyo gari mzee mimi sichukui.
Just make arrangement to see how best I can be refunded my money, niende nikanunue gari
pahali pengine.
So, we kept on moving. He had actually wanted to assist me – he was very genuine but I think
Mwiki akamwambia huyo wachana nay eye – because I think they are in the business of
collecting money from people. Sasa hiyo pesa ikaenda hivyo.
Report of the Taskforce on Pyramid Schemes
334
From there, I had already invested Shs.400,000/- na Jitegemee and the word was, at that time,
ilikuwa ya one of the ministers. Hata watu wakasema kama ni ya minister, hii kitu ni ya ukweli.
I just do not want to give names here. Nikaweka Shs.400,000/-. Unajua hiyo ni maneno watu
wanasema hii ni ya fulani. So, from there, that is when now Kenya Business ikawa suspended.
Tukaungana tukaenda kwa Commissioners kumuliza; because this Sacco was even registered,
how come saa hizi ndio mna-note kuna kitu imekuwa ikiendelea and they were not following the
rules that a Co-operative is supposed to follow. How come, because they used to advertise on
daily basis for about even five months. For even kama wangeona wanapeana interest, that is
against the rules, ingekuwa imefungwa kitambo sana and it is something that was in the papers.
Akatuambia hata mimi, vile tumechunguza hii maneno, hii kitu itakuja kufungwa because once
we realize that Mwiki was in it and knowing who Mwiki is, tukaona hapa kuna problem. So,
that is where tukaanza kukutana, tukapeleka case kortini. So, nikafikiria wacha niombe. So,
nikatafuta one of the CID officers; nikaenda kwake kumuliza, hakuna namnaunaweza kusaidia
mimi na nimekuwa na shida mingi sana. Akasema, Chege, huyo mtu is untouchable, na mimi ni
mtu mdogo sana na hii maneno iko na watu wakuba. Kwa hivyo hii hata ukijaribu nini na nini
hakuna pahali unaenda. Nikatoka hapo, nikatafuta mkubwa mwengine wa police. Akaniambia
sasa shida iko kwa hii side ingine inaitwa CID; because hawa watu wote wamepewa pesa
wameshiba hakuna mtu anataka kufungua mdomo. Ukienda ukijaribu kuongea kwa nani, ni kazi
ya bure because kama hapa Central amemuaga 3 million in every station. Because me as an
individual I know the truth but there is nothing I can do – I am too small, I cannot do anything.
Lakini kuna watu wengine walijaribu njia zingine na wakapata pesa zao.
So, in total from there, nilikuwa nimeweka another Shs.100,000/-. Wanasema sijui inaitwa
nilikuwa nimeweka Shs.100,000/-. DECI I have put Shs.220,000/- sikupata. Hii ingine ya Sylvia
nikaweka 51,000/- na kwa hii Initiative anakuja na anasimama
mbele ya watu; case yake ilikuwa kortini, akarudishiwa pesa. Ilikuwa Family Bank, akapewa
pesa yake yote aende akalipe watu. So, he pays one person, tuliagana 8 months. I have his
number, I call him; namuliza, si ulipewa pesa yako ulisema unasema utalipa? Nilikuwa
mgonjwa kidogo, nitafungua ofisi. So, you know, he is using delaying tactics because he does
not want to pay. Na hakuna pahali naweza kumpeleka. He got all the money back but he does
not want to return money to the investors. But, there are a few people I know who he has already
refunded the money to.
Report of the Taskforce on Pyramid Schemes
335
Kuna ingine ilikuwa inaitwa Golden Life Concept – ilikuwa pale Utalii House; I put
Shs.192,000/- na ingine ya mwisho – ile ilikuwa ya Pastor Wanyoike, ulikuwa unaenda huko
unanunua vitabu ya kanisa, uko wameokoka karibu wote; unaona kabisa you are in the right
place. One time there was a lot of pressure from ile kanisa anaenda. Sasa yeye akasema, I am
willing to return this money, I think, because of the condition. Lakini bibi yake na kijana
wamemwambia hii pesa hairudi. So, it has been very difficult; hata nyumba ninashindwa
kulipa, my mother has to come from home akuje anilipie rent. Nimekuwa retrenched, I do not
know where to get another job – pengine nitafute njia ya kuenda ng’ambo niende nikaosha huko
watu wanaosha, because now who is going to employ me. Hata mkisikia mtu anataka house-
keeper mnaweza kuniambia!
Amb. John Mukuriah: Wanjiru, ngojea kidogo. Thank you for the sense of humor – but
Chairman anataka kukuliza swali kidogo na Commissioner mwengine anataka kuliza swali.
Hon. Francis Nyenze: Wanjiru Chege, sijui kama huyu ni Wanjiru Chege tulikuwa tunaishi na
yeye mahali Milimani pale, ni wewe?
Ms. Wanjiru Chege: Eh, ni mimi.
Hon. Francis Nyenze: Unajua sisahau watu-- ukiwa tutoto hivi. Kumbe umekuwa mama
mkubwa; sorry, nimekukumbuka. Sasa, we have heard so much about this Mr. Mwiki and we
have noted it. We have heard there are Police CID to protect him and we have also taken note
and written that in our report. We do not want you to say it here because we do not want you to
endanger your life. But, in confidence, that lady is called Roseline, a very qualified lawyer.
Mwambie hiyo details; ukiona hiyo unaogopa, uniambie, kwa sababu nilikujua ukiwa katoto –
pale kwa Margaret hapo? Ninakukumbuka?
Ms. Wanjiru Chege: Umekumbuka, yes.
Dr. Machanja Ligabo: Madam, there is something which-- it is general. Ume-invest katika
schemes, karibu--
Report of the Taskforce on Pyramid Schemes
336
Ms. Wanjiru Chege: Ya gari was part of Kenya Businss, so that is 8 schemes.
Dr. Machanja Ligabo: About 8 schemes. When you failed in the first one-- wakati wale
watu wa gari hawakukupatia, ukaangalia, no, no, it is not only you – ni jambo ambalo
tumesikia-- kwa nini huku-stop; kwa nini uliendelea kidogo, kidogo hapa na pale.
Ms. Wanjiru Chege: Sikuendelea, what happened this, you know with Kenya Business I said I
started with Shs.30,000/-. So, by the time I was taking my Shs.800,000/- nikagawa pesa
nikasema I cannot put in one basket. That is the time nikaweka ingine DECI, nikaweka ingine
kwa Sylvia na hiyo ingine nikapeleka FINO. It was around the same time.
Dr. Machanja Ligabo: It is okay, asante.
Amb. John Mukuriah: Huko nyuma kulikuwa na mtu huko nyuma kabisa, nyuma – mwenye
kofia.
Mr. Stephen Mwangi: Thank you. My names are Stephen Mwangi. I had invested in Clip and
DECI and I had gone round trying to see how the various schemes were operating. In Clip I had
put 2 million shillings. In DECI I put Shs.100,000/- because I was not really sure about their
returns, because to me what Clip was doing was feasible. I knew because they were
international, it is very, very possible to pay back 10%, because even right now, I am in a
different scheme but it is not from this country and it pays the same and this is what has helped
me to get out of this problem. In total, as a family, we had invested a total of 8.5 million. I have
a sister who had put in 5 million shillings and I have a brother who is an Engineer also out of the
country and he had put in 1.4 million. The reason why they came in is because of my own
testimony and everybody who joined, joined because they were told by somebody they knew.
This thing grew by referral.
One thing I want to say here is, if you permit me,
Amb. John Mukuriah: Just hold on. Tafadhali tuzime hiyo masimu. Let us put our phones on
silent mode so that we can be able to listen to him. Endelea.
Report of the Taskforce on Pyramid Schemes
337
Mr. Stephen Mwangi: For me, when you talk about pyramiding, I want everybody to
understand that pyramiding is not illegal. It is not illegal to pyramid; ukisema pyramid usifikirie
pyramid ni uizi. What we are addressing here is a moral issue. Because, generally speaking , we
can go to specifics, people can talk about suicide; these are the effects of the immorality behind
it. Because, all these schemes were so many but siku ya kufungwa ilikuwa moja – so all closed
down in our interest. Whoever closed them down had the authority to close them down, kwa
sababu waliangalia wakaona tunanyang’anywa. But, what I have always asked myself is, this
person or this institution that closed all these institutions down, is because they were taking care
of us, Kenyans. Okay, like the shosho does not understand what to do, what to follow because
of who, that others were putting in. Some were putting in for their parents and all that and they
had existed for a while, okay. So, common sense will tell you, everybody is removing their
money from the bank. All this money is going to other place. So, banks will rally together and
go to their mother, the Central Bank.
Amb. John Mukuriah: So, now ask your question. What is it? You were asking a question.
Mr. Stephen Mwangi: What I am saying, I am very sympathetic, mimi nawahurumia nyinyi. I
do not to ask for my money because the first thing you said is that you are just like us. But what I
am saying is, I want just to tell you that sometimes the frustration you see from everyone is
because we have been through a lot, we have seen people who we had so much trust in telling us
that people are untouchable. Even right now some people are saying that they cannot say
something because their life will be in danger and this is the truth.
I am sure, ni vile tu watu wanaogopa kuongea, people are intelligent and they know what is
going on. I do not have to tell you, you know what is going on. Perhaps what we are doing here
is for therapy, only. Therapy, niongee nitoe unchungu kwa roho.
Amb. John Mukuriah: Please, please--
Mr. Stephen Mwangi: I am not condemning you, sir.
Amb. John Mukuriah: We hope you are not.
Report of the Taskforce on Pyramid Schemes
338
Mr. Stephen Mwangi: I am trying to tell you, I have been to all the ten countries; this thing is
everywhere. Right now in Nigeria they are suffering just like Kenya – not because pyramiding is
bad but it is because people take advantage of people who do not understand the system. So, my
prayers are with you and forgive me if I feel that you may not succeed because very few people
are willing to co-operate. I have a false feeling inside me that whoever we are after, or whatever
we are after, might get anywhere.
Amb. John Mukuriah: Okay, please. To some of the victims here, it was their lives; what
they lost is not money, they literally lost their lives.
Mr. Stephen Mwangi: You will be surprised what it caused me. It caused me my job, it
caused me my fiancée, it caused me everything-- sometimes I ask myself what is the difference
between me and he who killed himself. We have different styles of swimming; some people go
over, others will have a little--
Amb. John Mukuriah: Please, you will see me after this, I look at it again. You are just like
my son; see me after this. Ngojea kidogo, Commissioner anataka kusema kitu kidogo.
Mr. Joseph Kibowot: Ndugu zangu, unajua unapokuja hapa, sisi kama vile tuliwasomea, tuna
mandate ya kufuata na malilio kutoka kwa Initiative Groups au wale ambao wanalete pressure
ilifanya serikali kuteua hii Kamati, na hakuna ingine. So far, hii ndio iko kwa jina ya serikali
kuchukua malilio. Sasa kazi yetu ile tutafanya, ingawa tukiona historia, tunavunjika moyo
kusema Commissions zimekuwa za watu wakubwa hamjasikia majina yetu kama-- labda
Mheshimiwa Nyenze tu ni jina ambao umesikia na Ambassador Mukuriah kwa watu ambao
wanasaidia nchi hii. Lakini wengine majina ingine hamjasikia. Lakini, niwaulize, kuna jina
makubwa makubwa wameingia kwa Ma-commissions ambao hawajatoa chochote. Kkwa hivyo,
tufanye namna hii, kwa sababu hii Kamati hii ambayo imeundwa na serikali na sisi tumesema,
tumejichunguza na kusema hii kazi tutaweza au hatutaweza? Tukasema, we will keep our faith
na hii vita ya kunyang’anya kutoka wasiojiweza, hii vita itaendelea mpaka lini? Hii vita
tutapigania, na itaanza mahali. Na sisi wenyewe tunaamini, in our small way, tutaanza na
tutafanya country iwe sawa na mpaka tuweke kwa meza mambo yote. Kwa hivyo, tunaomba
nyinyi, wale ambao—wenzetu kutoka Kitale, msivunjike moyo – hii ni ushetani, hii ni uhalifu, hii
Report of the Taskforce on Pyramid Schemes
339
ni unyang’anyang’i lakini we have to start the fight somewhere and one day you will be happy.
Mtusaidie, mtupatie information.
Na wale ambao wana information ambaye ni ya siri, tafadhali muingie kwa Secretariat, muingie
kwa sisi, tuweze kufuatilia mpaka tuandikie report. Msivunjike moyo saa hii, kwa sababu hii vita
itakuja kwako. Itakwama; dunia yetu ya Kenya haiwezi kuendelea namna hii mpaka-- Na
nikimalizia, nataka kusema, tuki-share experiences kama ya huyo kijana, kama ya huyu mama
shosho, mtapata nafasi pia ya kutambua kwamba kuna wengine kati yenu ambao wameumia
zaidi. Some people are dying, families zimevunjika, kama vile Chairman amewaelezea.
Natuombe Mungu kwamba hii vita kama Wakenya ambao hawana yoyote tupigane mpaka haki
wetu iweze kurudi na maisha ya kawaida iweze kuendelea. So, my friend from Kitale, do not
doubt us, give us three months, we do our job and then you know where it will stop; kisha
mnaweza kuendelea kutoka hapo. Thank you, very much.
Amb. John Mukuriah: Number 41 to 50 – ukiangalia uwe kwa hiyo 41 to 50 tafadhali uende
nje ufanye registration. Wanakungojea huko. Ngojeeni kidogo, tuko na Commissioner
mwengine hapa, azungumze kidogo, dakika moja tu.
Ms. Emily Mwachoo: Asante Bwana Vice Chairman. Wapendwa, na ni wapendwa wa Kenya
na nimesikia testimony kutoka kwa wajane, mayatima na wanaume na wanawake tangu tuanze
hii. Saa zile tuliomba, hata mimi wakati nilipewa hii kazi niliomba, nikammwambia, Bwana
unisaidie kutafuta ukweli na ukweli tupu. So, nikirudi nyuma nikafikiria hata najua mpaka
Quran; najua inasema, tuseme ukweli na tusinyanyase zaidi wale wanyonge. Wengi ambao
walinyanyazwa na hizi pyramids ni wamama. Hata tukiangalia tuko na wamama wawili tu hapa
na wengine ni wanaume. Mimi hapa ni Emily Mwachoo na ule dada Shakina Adan. Lakini
nikiangalia hiyo Bibilia nami naamini na sisi zote tumeomba na tukiangalia kwa Bibilia, kuna
mwanamke aliitwa Esther, kuna mwanamke aliitwa Judith, kuna mwanamke aliitwa Deborah na
Mungu alitumia hawa wanawake na wanaume wengi kwa Bibilia kutenda makuu kwa hii dunia –
ni tu hii dunia.
Sasa nasikia tumeomba, na kila siju hapa tukija Chairman wetu anauliza tuanze na maombi
kutoka kwenu wenyewe, asubuhi na jioni tunamaliza na maombi. Kwa Bibilia, Warumi 8:31,
inasema, “if God be for us, who can be against us”. Ukiangalia Zaburi 124 inasema, “kama
Report of the Taskforce on Pyramid Schemes
340
Mungu hakuwa upande wetu, ..” ninamwamini, tafadhali, Mungu ako upande wetu.
Tunaonekana wanyonge lakini Mungu akiwa upande wetu tutashinda. Asanteni sana.
Amb. John Mukuriah: Asante sana. Tunaendelea. Wewe mama, kuja.
Ms. Jane Musembi: Mwenye kiti, ndugu na dada nawasalimu kwa jina ya Yesu, hamjambo?
Mimi kwa majina naitwa Jane Musembi Himiywi. I am a single mother, a mother of four – two
boys and two girls. Nilichukua pesa ambayo nilikuwa nilipie watoto wangu school fees. Yule
dada yangu mwingine hata anauliza kama anaweza kwenda huko ng’ambo na afanye, fanye kazi.
Na kweli mimi nilikuwa nafanya kazi huko Barclays, nika-retire, nikaenda ng’ambo, nikafanya
fanya kazi kwa sababu nilikuwa na watoto wa kusoma. Kutoka huko ndio nikapata hii manaeno
ya pyramids inaendelea, nikasema wacha nijiunge nao. Lakini mbeleni nilikuwa nimekataa
kabisa kuingia hizi pyramids. Lakini ndungu yangu aliandikwa kazi na DECI in February, 2007.
Na mimi nikasema, kama ndungu yangu iko, nafikiria pesa yangu haitapotea. Nikaweka karibu
230,000/- kwa DECI, nikaweka Shs.160,000/- kwa Jitegemee; Global, I just put Shs15,000/-
halafu zingine nikaweka may be 1,000/- hivi.
Ms. Jane Musembi: Niko nazo hapa. Global niliweka Shs.15,000/-, Jitegemee, Shs.160,000/-,
DECI Shs.230,000/- . It was a total of about Shs.400,000/-. Lakini naonanga kweli pesa ni
maua. Kile kabisa imefanya nisimame hapa ni uchungu niko nayo ndani yangu. Huyo ndugu
yangu nawambia aliingia DECI mwezi wa pili kama inaendelea kwisha. Ikifika mwezi wa tano,
tarehe kumi na moja – kama ulisikia mtu ameangushwa na watu wa DECI huko Union Towers,
huyo alikuwa ndugu yangu – ndugu yangu mdogo. Nikisimama hapa niko na uchungu; kwa
maana hata afadhali pesa ingelienda na ndugu yangu alikuwa anafanya kazi. Alikuwa ameenda
kwa ofisi asubuhi, kutoka kwa nyumba akitembea, alikuwa kwa ofisi, na akarushwa kutoka
gorofa ya nane mpaka chini akiwa ndani ya ofisi, na mpaka sasa Donde alisema-- hata wakati
tulikuwa na funeral alisema, hakuna mtu alikuwa kwa ofisi ambayo alishuhudia ni nini iliendelea
akiwa ndani ya ofisi on a Friday – a working day – watu wakiwa kwa ofisi. Na tangu tuzike
ndugu yangu – alikufa tarehe 11.5.2007, tukamzika tarehe 16 na hiyo ndio siku ya mwisho
tulionana na Donde. Tumemwandikia mabarua, hajajibu. Ni uchungu; si hiyo pesa imenileta
hapa, ni ndugu yangu. Mpaka sasa, hakuna siku DEC Iwanasema kitu, DECI wakasema hakuna
mtu alijua ni nai alimshika na akamuangusha. Hakuna mtu mwingine kwa ofisi ambayo aliumia
wakati huo – kusema at least alienda kumsaidia. Kama walikuwa ni wateja ama walikuwa ni
Report of the Taskforce on Pyramid Schemes
341
watu wa DECI wenyewe, hatujui ni nani. Sasa ukinisaidia na utakuwa umesaidia familia wetu,
umesaidia bibi wake kwa maana aliwacha bibi na watoto wachanga, watoto watatu. Wa kwanza
sasa ndio ameingia class 8, mwengine ako class 5 na mwengine anaenda class two.
Amb. John Mukuriah: Njoo kidogo, mama.
(Consultation at Members’ Table)
Amb. John Mukuriah: Haya, mama endelea na utupatie jina kwanza.
Ms. Wambui Mwaura: Habari zenu? Mimi naitwa Wambui Mwaura; sitasema mengi kwa
sababu yamesemwa. Lakini ningetaka kusema juu yah ii Sylvia Investment. Sylvia Investment
aliambiwa alipe watu wakati alirudishiwa pesa. Wakati aliambiwa hivyo, alituuliza original
receipts na tukampelekea akatuambia ataturudishia pesa zetu. Tangu last year hajawahi
kutuuliza hata kidogo. Mimi mwenyewe nimempigia simu sana, wakati mwingine nilimuliza,
when are we opening your offices and when are you paying us? Anasema, keep on calling until
the time we will tell you we are opening or not, we do not know when. We have gone there
several times and he does not open any more. So, as you follow this Sylvia, you should know
that we do not have the original receipts. Mwenyewe ni Mteja na tukiwa na meeting kama hii,
atakuja aseme mimi uwa ninalipa. Anasema hivyo kwa sababu alilipa a few people aki-cover
up. Sasa hawa huwa wanampatia cover kusema alilipa lakini sisi hajawahi kutulipa na
amefunga ofisi yake.
Kuna huyu mwingine wa Prosper Investment; hii Prosper Investment tulienda tukachukua mtoto
wake – mwenye alikuwa anachukua pesa kwa ofisi, tukampeleka Kamkunji. Wakati huyo mzee
alikuja kutoa mtoto wake huko Kamkunji, alituambia yeye ajali hata akikula ugali. Since last
year, hiyo kesi tulikuwa tumepeleka huko Makadara. It is still in progress. So, I just wanted to
give that bit of information.
Amb. John Mukuriah: Wambui, how much did you invest in Sylvia?
Report of the Taskforce on Pyramid Schemes
342
Ms. Wambui Mwaura: In Sylvia I had Shs.42,000/- Clip I had Shs.330,000/- Golden Concept
nilikuwa na Shs.35,000/-, Prosper nilikuwa na Shs.25,000/-, Pesa Net nilikuwa na Shs.3,500/-.
Thank you.
Amb. John Mukuriah: Pole sana, sasa mwingine.
(Consultations among members).
Amb. John Mukuriah: Ya kwanza, never, never – whether you are dealing with pyramids or
any other institution, never surrender original copies of your receipts. In DECI, we were told
when somebody was going for harvest, they ask you for receipts in advance for them to process;
so, could be you are not to blame, but we would like to caution you very strongly because we
understand that there are still some pyramids which are still going on. Make sure you do not
surrender your receipts; tuendelee.
Mr. Gicheru: Kwa majina naitwa Gicheru. Nilikuwa nataka kusema, wananchi hapa nchini,
hii pyramid is just one of the ways in which the public is being taken for granted. You find a
situation whereby most of victims had put their money in pyramids, they had their money in
retirement funds and you find that before Mwiraria came up with that rule of retirement, people
had worked and they knew that they can only save by NSSF. These other schemes were being
used for short-term goals. So, you find that people were kind of ambushed by that rule – they
were not given any time, they were just told if you are retrenched or you lose your job, you are
only given a portion of your money that was saved. So, you find that most of the victims were
people who were retrenched and they got some little money which they put aside. But then,
there is a time Hon. Paul Muite, in 2007, bought up an issue to try and bring an amendment to
that Retirement Benefits Authority Act which was brought down by Parliament. But what I want
to bring--
Amb. John Mukuriah: First of all, give us your story on how much you invested, how much
you lost then unaweza kumaliza na hiyo.
Mr. Gicheru: Okay, I will start by giving some recommendations to the Task Force. I have
already registered at Nyayo House, Mine was Shsl 780,000/- in various schemes. I lost my job
Report of the Taskforce on Pyramid Schemes
343
in 2007 and that was part of the money which I had been paid. You know, in this country, we
have a problem of employment; you lose your job today, chances are that you are not going to
get another job very soon. So, what I was asking this Task Force to do, since it has been set up
by the government and there is a letter I have written to the attention of the Chairman, the only
way you can assist the public because the public is being taken for granted; because you do not
know where to invest your money nowadays – you put in Stock Exchange, tomorrow you hear
another scandal has come up.
You even wonder whether those funds are safe. So, there is a situation in this country which we
need to address. We are allowing a situation where thugs are out to take the public for granted
and we are not doing anything about it.
So, what I would suggest is that this issue of Retirement Fund – because people have some
money which is locked there and they are being told to wait until they retire. Can this money be
unlocked so that it can offset some of the debts which people are facing because the money is
there and it is not government money? It is very unlikely that we will get this pyramid money –
let us be realistic--
Amb. John Mukuriah: Thank you.
Mr. Gicheru: Yes, why I am saying this--
Amb. John Mukuriah: Bwana Gicheru, thank you; we have heard you. I think Mr. Gicheru,
we have heard you. I think you are the first one to come up with the suggestion of unlocking the
Retirement Benefits. You must have really thought about these things and we thank you very
much. We have your letter and you have registered; so it is okay. Nataka kumaliza na huyu
Pastor wa Kitale becaue he has been raising his hand.
Mr. Edward Simiyu: Nitachukua muda mfupi sana kwa sababu sitaki kuwachosha. Mine is
very sensitive shauri Mheshimiwa alikuwa anaguzia maneno ya Central Bank ku-freeze pesa. –
yaani kufungia pesa. Lakini hii yangu ni kidogo lakini ni pesa ya DECI. Mimi ni mkaaji wa
Kitale – na msiniulize swali, ulijuaje hii neno?. Walipojua Central Bank wamekanyagia pesa ya
bank, walileta safe – ni nzito sana – ambaye ililetwa na gari Prado; na pesa za watu Wateja
zikaanza kuwekwa ndani ya ofisi ya DECI Kitale. Wacha nianze upya. Thank you very much.
Report of the Taskforce on Pyramid Schemes
344
Walipogunduwa ya kuwa Central Bank amefungia account zao – hawawezi kutoa, hawawezi ku-
transact vile wanataka, wakaenda Nairobi, wakaleta strong safe – kubwa sana, imeletwa na
Prado pekee yake nyuma na ikawekwa kwa ofisi. Mimi kama muhubiri nilikuwa huru, huru vile
niko huru mbele ya hawa ma-Commissioners na nikaona safe ndio hii. Walikuwa wanaweka
ndani pesa; tumesikia Central Bank imefungia pesa na zingine bado ziko hapa kwa ofisi. Dakika
ya mwisho, walipo sema tarehe fulani ndio mta-harvest, tarehe ndio hii, safe ilisindikishwa na
Kenya Police kumi kupelekwa Nairobi nap engine iko katika mkono ya mtu fulani – hapana kwa
Central Bank.
Kwa hivyo wakubwa, mkifuata Central Bank, mpaka mjue kuna pesa zingine ndani ya mfuko ya
mtu fulani, hapa kando; na huyo mtu mnakaa nay eye hapa Nairobi. Na huyu mtu mnamjua na
hata hawa wanamjua. Na ikikosa kuwa mtu mmoja, hawa watu wako wawili – mimi nawajua,
na hata hapa wanajulikana.
Amb. John Mukuriah: Pastor, asante. Huyo mtu, wengine wetu hatumjui. Kwa hivyo,
utaenda kwa ile desk, tafadhali, upeane jina, in confidence upatiane hapa, ili tumjue. Asante
sana.
Mr. Edward Simiyu: Asante – nitarudi bbadaye kwa maombi, lakini kwa hayo, nitaenda pale
kwa desk. Mubarikiwe sana.
Amb. John Mukuriah: Asante Pastor.
Dr. Machanja Ligabo: Mimi nafikiri, huyu mkubwa ambae ametoa ushahidi, kama anajua mtu
na anataka kusema, atuambie! It is important, because we are not protecting anybody. So,
tukisema aende aandike pale, atasikia ni kama tunamkataza. Lakini yeye akitaka kusema,
atuambie, aseme hadharani na kama hataki ndio aende. Can you tell us – kwa sababu mimi, Dr
Machanja, sijui huyo mtu anasema. Wakati anasema, “hata nyinyi mnamjua” it means I know
the person – I do not know him. Kama yeye ana jambo, afanye hadharani. That is why we have
this meeting; arudi hapa atuambie it is so and so. Na kama anaogopa, ndio aende kuandika. I
want to make this clear because we are not trying to cover anybody, please. Bwana Pastor,
Report of the Taskforce on Pyramid Schemes
345
unaweza kuja utuambie sisi yule mtu unasema sisi tunamjua jina lake hata hawa wamjue? Can
you? Becaue I do not want to appear like I know. Ambie hawa yule mtu.
Mr. Edward Simiyu: In the name of Jesus Christ - Asante sana. Ume-quote verse ingine
mzuri sana; “ukweli itaweka mtu huru. Mimi nakaa Kitale, ofisi ya DECI sikukuwa naweza
kukaa masaa matatu manne bila kuingia ndani, kila siku. Mimi ni muhubiri na muhubiri na
wahubiri ndio walikuwa wanafanya kazi ndani; kukaribisha wageni ndani na kuwatoa ndani.
Aliyekuja kutuelimisha DECI ni nini kwa blackboard alikuwa anaitwa John Donde – mtu kutoka
Gem. Wa pili yake ni msichana anaitwa, somebody Redemptor, ako Nairobi hii. Redemptor
Keya. Na ninazungumza kama muhubiri mwenye sita-retreat nyuma, hata nikipelekwa CID na
wapi, nitasema ninawajua. Na hata walipigwa picha na sisi; si kitu ya kuficha, na mimi pesa
zangu zote za retire zikakwishia hapo na watoto wanalalia nyumbani na niwache kumtaja?
Akashikwa siku moja Kisumu na OCPD – the lady. Pahali alipelekwa kortini siku ya kwanza
mention, na ya pili sikusikia – ilienda underground. Sijui hata huyo OCPD iko ama alipelekwa
transfer. Na huyo George anaishi tu hapa Nairobi. Zaidi ya hayo, reliable sources
zinasemekana amepewa ulinzi na amekula pesa zangu. Mbona mimi sina ulinzi? Shauri mimi
sina dosari ndani ya kinyua changu. Daudi Mfalme alipoguza mke wa Uria, askari, alifanywa
nini? Bwana Mungu alimwambia, unakufa hata kama wewe ni Nabii wa Bwana Mungu,
utakufa. Alipiga magoti chini akalia siku saba bila kunyua na kukula; ndio yule mtoto alizaa
ndani ya mke wa Uria – ndio mtoto akakufa badala ya Daudi. Kwa hivyo, hatua ichukuliwe kwa
huyu George na huyu Redemptor, ili wasikule tu marupurupu ya mabilioni kwa bank ndani ya hii
Nairobi na sisi nyumbani tunateseka.
Amb. John Mukuriah: Asante, Pastor; tumekupata na tunaendelea. Hakuna maswali kwa
Pastor, tumemaliza. Huko nyuma, yes; njoo.
Mr. Elijah Kadhii: Mimi ninaitwa Elija Kadhii na nilikuwa nime-invest na Clip Investment
Shs.100,000/-. Sitakuwa na hadithi nyingi juu tumesikia kuna National Pyramid Scheme
Initiative na kuna hii. Tunataka ikiwa kuna kitu mnaweza kutufanya, kutusaidia kwa sababu
Kenya hii ujanja umekuwa mwingi; tuwe na muelekeo moja mambo yakienda kuisha, ishie
mahali pamoja ili some investors wasije wakapoteza pesa zao kupitia kwa watu wengine. Please,
tumewaombea, tunajua Kenya waezi ndio wanalindwa. Asante.
Report of the Taskforce on Pyramid Schemes
346
Amb. John Mukuriah: Asante sana. Sasa, mama-- lakini umezungumza? Bado? Haya
mpatie microphone; lakini ulikuwa umezungumza?
Amb. John Mukuriah: Basi, ngojea kidogo tuangalie; wewe zungumza basi – uko hapa mbele.
Pastor Michael Kariuki: Asante Bwana Mwenyekiti; mimi naitwa Pastor Michael Kariuki.
Kwa hivyo ninaongea kwa niamba ya Kanisa. Wakatu ambapo mchungaji moja alikuwa kwangu
akaniambia juu ya Clip, nilijua ya kwamba maombi yangu imejibiwa. Ni kwasababu kwa miaka
mingi, nilikuwa ninatafuta pesa ya kununua kiwanja. Kwa hivyo nilikuwa nimefanya
harambeenymingi, miaka nenda, miaka rudi. Hata mimi moyoni nilikuwa nimechoka katika hali
ya kufanya harambee. Na hata watu wengi walikuwa nimewaomba pesa wangeniona walijua
huyu ni mwenye shida na anakuja kutuomba pesa. Kwa hivyo, wakati Clip iliwezwa kujulisha
kwangu, sikupoteza nafasi hata moja. Baada ya kuwa convinced ya kwamba hii kitu ni kitu
ambapo ni religious thing; na first policy yao ilikuwa ya kuwa ni kuwafanya watu – yaani kutoa
ufukara kwa waminio – Christians. Kwa hivyo, nikaenda katika ofisi zao; na these people
walikuwa wana-display certificates zao za registration. Baada ya muda isiomrefu, tukaenda kwa
bank na mzee wa kanisa tukatoa Shs.700,000/- tuweze ku-invest ili tuweze kupata kiwanja
ambapo tulikuwa na haja nacho. Na hapo ilikuwa February, 2007. Basi, tuka-invest
Shs.700,000/-. Tukafanikiwa kulipwa ile walikuwa wanaita interest kwa miezi miwili, lakini
mwezi wa pili ilikuwa ni shida. Mwezi wa tatu hatukuweza kupata kitu kingine. And then, that
was it.
Tumekuwa tukifuatilia na hata hizi pesa ningependa niseme, pahali ambapo nimehudumu hawa
watu hizi pesa kupata ni shida; kuna ufukara mwingi. Kwa hivyo, hii ni pesa yenye tumekusanya
kwa siku mingi sana. Lakini wakati ambapo hii Clip ilipoenda chini, yule ambao alipata shida
nyingi ni mimi kama mchungaji. Ni kwa sababu ilisemekana Pastor amekula pesa. Vile alitumia
mzee was just a scape goat, lakini pesa zote ni Pastor ambao alichukua. Ilikuwa ni vita kwangu
– mimi na familia yangu. Ilikuwa mpaka watu wengine walisema huyu Pastor anastahili
kupelekwa mahakamani, kortini akajibu pesa zetu alipeleka wapi. Isipokuwa ya kwamba
ilikuwa katika minutes, lakini wale washiriki hawangeweza kuelewa na ku-buy the idea ya
kwamba Pastor alikuwa genuine.- alikuwa na haja tupate kiwanja.
Report of the Taskforce on Pyramid Schemes
347
So, wakati ambapo nimesimama hapa, ninasimama mbele yenu mtu ambao amepigwa mawe
nyingi sana. Miezi kama sita sijakuwa kwenye kanisa; na ni kwa sababu ya mambo kama hii ya
Clip.
Wakati ambapo niliweka pesa Shs.700,000/- nilikakamua nikapeleka zangu Shs.50,000/-, za mke
wangu Shs.50,000/- - ikawa ni Shs.100,000/- ya familia yangu, na niko na hizo documents.
Lakini ile kitu mimi nalilia ni kwamba pesa ya Kanisa iweze kurudishwa; zangu irudi baadaye;
lakini hii ambayo ni ya uma na ni ya watu ambao ninajua pahali ambao wanatoa hizi pesa; kuna
garbage pahali pale, na wakilishi wangu walikuwa wanafanya kazi kwa garbage. So, ni pesa
ambayho ni kidogo. So, hiyo ndio ningeweza kutoa kama malilio langu – kama inawezekana.
Na bado kuna nia - there is still hope. Mimi sijakufa moyo, bado ninaamini. This was a
genuine motive kutoka kwangu. I knew what I was doing, na ilikuwa ni kama ndoto imejibiwa.
Mpaka wa leo sijakufa moyo.
Amb. John Mukuriah: Hold on, Pastor, dakika moja. Number 61 - 80 can now go to the
Registration Desk.and register – all those with 61 – 80. Haya, Pastor, maliza kwa haraka.
Pastor Michael Kariuki: Last year nilipata anuani ya yule ambao alikuwa ni director ya Clip
– na ni e-mail. Nilipata kwa kitabu yake, maanake ukienda pale ni lazima ungenunua kitabu.
So, niliweza kupitia kwa kitabu, nikapata e-mail yake, nikamwandikia. Na last year alinijibu,
akaniambia, this thing ilienda under wakati alikuwa ameenda ng’ambo; lakini nimekuja ku-
realize yeye si Mkenya; nasikia ni kama yeye ni M-Nigeria. So, kama anaweza kufuatiliwa,
maanake kuna Interpol police wanaweza kumfuata aweze kuleta pesa za wananchi, inaweza
kuwa mzuri. Asante sana.
Amb. John Mukuriah: Masimu mzine,tafadhali. What is the name of the church, Pastor? Na
ma-risiti uko nayo, umepeana?
Pastor Michael Kariuki: Ma-risiti niko nazo hapa. The name of the Church is Darajani
Baptist Church, iko upande wa Gadhondeki – ni hapa tu Nairobi – on the way to Uthiru. Thank
you.
Amb. John Mukuriah: At the back there. Hakuna tabu.
Report of the Taskforce on Pyramid Schemes
348
Mr. Ernest Oyondi: Hamjambo. I wanted to share something very little. Hii kitu ni kama
inaumiza sana; najaribu kulia, sometimes tunacheka. Mimi nimesimama tu kwa sababu
nimepoteza pesa kwa Sasanet. I am Oyondi Ernest. In fact, mimi natoka Naivasha; Ndio
nikaona hii kitu nikakimbia Nairobi. Mimi nilipoteza Shs.43,000/- Mimi nafanya na kampuni ya
G4S. Cha kushangaza, ile kitu nataka mfurahishe ama mshangae, yule ambaye nilifanya harusi
naye, kwa sababu I wanted to build – hata misumari ziko kwa nyumba. Nilikuwa nimenunua plot
Kayole ya Naivasha. I just took money – in fact, aliniuma
Mpaka saa hii akiniambia, mzee wangu nakupenda, ninamwonyesha hapa. In fact that is what I
wanted to say. Wale ambao wamepata kitu ambao hawatasahau; siwezi sahau kwa sababu hata
sijapona, if I can show you here – sijapona. Hii kitu – sasa ile mama aliweka milioni moja, na
vile mimi nimeumwa – hii kitu ukiangalia-- When I was coming, niliongea naye akaniambia,
enda tu kwa hiyo mkutano, lakini ukirudi ni sawa lakini unisamehe kwa sababu ni--
Amb. John Mukuriah: Asante sana, thank you very much. Next person; at the back there.
Hold on, please; number 80 – 100; just go to the Registration Desk. Now you can continue.
Tuko na dakika kumi pekee yake. So, we are just about to finish. Kwa hivyo, sasa uende kwa
haraka, tafadhali.
Mr. Jeremiah Asariah: Asante. Habari zenu wapendwa? Wapendwa, kwa majina mimi
naitwa Jeremiah Asariah na mimi mwenyewe niliweka pesa kwa hizi pyramids – sio moja,
niliweka Shs.100,090/- na siku yenye nilikuwa naenda kutoa pesa yangu hiyo, mimi ni mtu wa
Jua Kali. Ile kitu ambayo nilifanya niweke hizo pesa, walikuja ya kwamba wanakuja kusaidia
wale ambao hawajiwezi – kitu kama watu wa low class na walikuja kwa jina ya Kanisa. Sasa
wakati tuliona ya kwamba Ma-pastor wako uko ndani, na hao ndio walianza nao, tukasema ya
kweli hii ni kitu cha maana. Mimi nikaenda nikatoa pesa, nikaweka kwa moja inaitwa Christian
Family, nikaweka kwa ingine inaitwa Montblanc Afrique ilikuwa Ngong/ Road; hiyo ingine ya
Christian ilikuwa hapa town, Tom Mboya street; na hii ingine ya Monteblanc ilikuwa Masaba
Hospital – zilikuwa pahali huwezi kufikiria ya kwamba kuna mtu mwenye anaweza kufanya
mambo mabaya. Halafu DECI pia nilikuwa nimeweka. Ni ingine ninasahau kwa sababu receipt
nilipoteza – ilikuwa kwa nyumba hii iko karibu na Jeevanjee Gardens – hii nuymba mrefu iko
karibu na-- yea Global. Hapo pia niliweka pesa zangu.
Report of the Taskforce on Pyramid Schemes
349
So, zote pesa nilikuwa nimeweka ilikuwa ni Shs.190,000/-. Na kile ambao ilinifanya nikaweka
hii pesa ni kwamba walikuwa karibu sana na Wakristo, na hata Waislamu pia walikuwa
wanawafikia. Nikaona hawa watu because it is a religious thing, they are transparent. Halafu
wakati tena kile ambao ilinifanya niweke pesa, nilienda nikapata kwamba, nilienda nikapata
wako na stamp ya Kenya Revenue Authority (KRA). Nikaona, kumbe government yetu pia
imekubali hii kitu. Ndio nikawa na confidence - Actually, those are the things nikianza,
niliwauliza, government imekubali? Wakaniambia, tunaweza kuwa na stamp ya government
kama hawajakubali nay a KRA? Then, nikasema, okay, sawasawa. Nido nikawa na-- nika
make sure wameniwekea hiyo stamp kwa sababu government anajua. Kitambo kidogo tukasikia
government hawajui. Nikauliza, wapendwa, hii inaweza kuwaje, wanaweza kutumia stamp ya
government, atumie KRA na government hajui? Wapendwa, mimi kilio changu ni kwamba,
government yetu akijua kitu ni mbaya, na wanataka wananchi wasiingie kitu kama hiyo,
wasijaribu ku-authorize ya kwamba KRA waweze kuweka stamp yao hapo. Hiyo inatuonyesha
ya kwamba hata government yetu pia does not care for us.
But I thank God that government amechukua hii jukumu ya kuona kwamba pesa zetu zimerudi.
Na kile ambao ningependa kuwaomba tena, wengi wetu risiti zetu zimepotea. Kwa maana mimi,
risiti ambao niko nazo zinafika tu Shs.40,000/- pekee yake; zingine zilipotea wakati tulikuwa na--
hii mambo ilifanyika baada ya elections. Kwa maana zile ambao zilikuwa karibu kuiva ndio
niliweka kwa bahasha ingine, lakini zile ambao zilikuwa bado pia niliweka kwa bahasha ingine
na hiyo bahasha ziwezi kupata. Kile ambao ningetaka kuwaomba, tulikuwa na Agents ambao
hawa watu walikuwa wanatumia, na uenda saa zingine wanaogopa wanaweza kupigwa. Let the
government be clear waelezwe kwamba, kama uko na evidence yoyote, kuja utuletee ili kwamba
waweze kuja na ile list ambao waliandika na ile pesa ambao walikuwa wameweka ili kwamba
wale ambao wamepoteza risiti zao waweze kurudishiwa hizo pesa, kwa maana tulikuwa na
contacts. Kwa maana wengi hawana hizo ma-risiti. Hiyo ndio kilio ambao niko nayo ili
muweze, as you work on that, wao Agents wao waweze kukuja na hizo records ndio wenye
wamepoteza risiti zao waweze kurudishiwa hizo pesa. Otherwise, thank you.
Amb. John Mukuriah: Asante. It is unfortunate that you lost the receipt with the KRA stamp.
Report of the Taskforce on Pyramid Schemes
350
Amb. John Mukuriah: Oh, I see, tuletee hapa, asante. Oh, hata wewe ulikuwa nazo? Nani
mwingine sasa, hii tutakuwa tukiangalia wakati-- Tuendelee; unajua wewe mama ulikuwa
umezungumza, lakini nitakupatia nafasi uzungumze kwa sababu napatia tu wawili nafasi halafu
tufunge. Wewe utakuwa wa mwisho sasa; kijana njoo.
Mr. Raymond Muhanji: Hamjambo wale tulihadhirika na nyinyi? Jambo Ma-
Commissioners?
Amb. John Mukuriah: Ngojea dakika moja-- endelea tu; we are settled. Give us your name
first.
Mr. Raymond Muhanji: Kwa majina mimi naitwa Raymond Muhanji Juma. I live in Nairobi
here. Kwanza kabisa mimi hii mambo ya pyramids sikuwa nimejua; lakini nilikuwa introduced
na rafiki yangu moja. Wakati huo akanielezea kuna mahali naweza weka pesa na itaongezeka.
Kwa ajili nilikuwa mwerevu sana, sikutaka kuweka pesa mingi. Nikawa mjanja; kwanza
nikakataa, kataa; badaaye nikaona akapata pesa, tena akarudi akapata; nikarudi nikaamua
wacha hata mimi nipeleke. Nikachukua Shs.5,000/- nikaenda nazo mahali ilikuwa inaitwa
Ufundi Co-operative kwa Global. Kufika huko,nikapata hawa watu walikuwa wamechelewa
kupata hizo pesa – wale wa nyuma na wale walikuwa wamekosa kupata wiki moja na ile ingine
wamepanga laini. Walikuwa wamepanga kupata pesa. Kutoka kwa nyumba nilikuwa
nimepanga kuweka Shs.5,000/- lakini kufika huko, nikashikwa na roho mtakatifu kama vile
Pastor alisema, nikachukua Shs.30,000/-, nikazigawa nikisema huwezi weka zote pamoja.
Nikaweka elfu tano, tano -
- Shs.30,000/-, nikaweka hapo. Kutoka hapo, sikuwa na roho na hawa watu. Nikajiuliza,
hizi pesa zinapeana hivi halafu zinarudi? Kutoka hapo, kama siku mbili, nikakutana na
mwengine na akaniambia, wachana na hao watu; hizo vitu wanasema si mzuri sana; lakini huku
kuna zile haziitwi pyramids, zinaitwa investments. Naye akanibeba akanipeleka mahali inaitwa
Capital Investments, huko Hazina Towers, gorofa ya sita. Kufika huko Hazina Towers,
nikafanyiwa ushuhuri karibu mara saba. Nikaenda kwa mara saba, wakinielezea uzuri yake na
ubaya yake na faida ile unapata, nikatoka. Nikarudi tena nikachukua mama, nikarudi na yeye
huko wanielezee kama mama anasikia. Tukatoka hapo na siku ya tatu nikarudi nikatoa pesa
shilingi elfu mia moja, nikaenda nazo mpaka huko. Nao, wakawa watu werevu sana. Ile kartasi
mnatengeneza nao ndio pesa zako zirudi, wanakupatia kwa muda ya mwaka, hata kama utapata
Report of the Taskforce on Pyramid Schemes
351
mambo ni mabaya, huwezi toa hizo pesa. Na ukora ile walitufanyia zaidi, wakaongeza hapo
lawyer, advocate; wanaleta advocate, wanakaa hapo. Hata makartasi tuko nazo na advocate
ndio alikuwa ana-file na amekaa kati kati ya wewe na huyu. Whoever would breach the
agreement would have to pay. Kama ni wewe ume-breach, watakata kwa interest ile pesa
zote ungepata – 18% kwa ile mieze ilikuwa imebaki yote. Utapata pesa zako zimeenda chini
halafu mnamalizana.
Nikatoka hapo kwenye nilitoa Shs.100,000/-. Nikasema hapana, hizi vitu nifanye kidogo kidogo.
Nikaenda Christian na nikapeana huko Shs.10,000/-. Nikatoka hapo, nikaenda ingine ilikuwa
inaitwa Clip, nikaepena huko tena Shs.5,000/-. Nikatoka hapo nikaenda ingine ilikuwa inaitwa
Excellors nikatoa Shs.5,000/-. Kutoka hapo, mwingine akaniambia, wachana na hizi vitu zote,
Kenya Business iko registered as a Co-operative. Hiyo iko na vitu vingi, wanauza magari, wana
factory ya kushiaga unga na wana magari ya transport. Sasa ukuje nikupeleke huko – ninajua
huko kabisa. Nilienda nikaona watu wengi – vile Kenya Business ilikuwa na vitu vingi ndani
yake. Tena nikapeleka Shs.120,000/-.
Kwa hizi zote, sikuweza kupata anything, lakini pale nilianza kwa hapo wakanipatia mara moja
Shs.18,000/- kwa sababu walikuwa wamesema kwa kila mwezi watakuwa wanalipa Shs.18,000/-.
Mimi nikawa mwerevu waliponiambia wanilipe na cheque nikasema, hapana, nataka hiyo
interest muwe mnanipatia kwa mkono, nika-sign. Nilipofanya hivo, nilipoenda kuchukua
interest, nikashikwa na roho, nikakuja tena nikachukua Shs.200,000/-, nikaongeza huko. Hiyo
walikuwa wanaita top-up. Iikawa tena ikabadilisha jina ikajiita, Silver Investment, wakaenda
Tom Mboya Street. Ikashika hapo Shs.300,000/-. Kwa hiyo Shs.300,000/- nikapatiwa interest
mwezi moja pekee yake. Nilipopatiwa mwezi moja, wakati hiyo wakatuandikia barua kesema
interest imetoka 18% imeenda 21%, lakini hiyo haikuji kwa ile pesa ulikuwa umeweka mbeleni,
inakuja kwa zile pesa utaweka kuanzia hapo.
Sasa mimi nikaona roho imekuwa ngumu nikasema sitaongeza pesa ingine huko mpaka
nitakapoona wale wengine wamepata hiyo. Sasa kwa vile huko Silver Investment haikuwa kama
Kenya Business; unajua, uzuri wa Kenya Business watu wengi tukakuja tukajuana kwa sababu
wengine walikuwa wanafanya monthly savings na vitu kama hiyo. Lakini huko Investment, watu
wengi walikuwa wanajiandikisha wanapata pesa yao kwa cheque. Mtu alikuwa anakuja tu na
anapewa cheque, na hukutani na mtu. Sasa vile hiyo Silver Investment ilifungwa, nilienda kama
Report of the Taskforce on Pyramid Schemes
352
leo, tarehe tano, nikapata walifunga jana, na wakaandika, ofisi imefungwa kwa muda kidogo
kwa sababu kuna matatizo ya computers. Sikupata hata mtu moja nilikuwa nimejua huko.
Documents ziko – hata agreement yenye tulifanya na lawyer huyo mweny tulikuwa naye, na
muhuri, na kila kitu ziko. Sasa ningesema hiyo ndio shida tulipata na pesa zote niliweka huko
zinafika karibu Shs.443,000/-. Naomba sana, kama Mungu ametokea – unajua, shida uwa
inatokea lakini Mungu pia anaona watu wake. Na kama ameamua leo ametokezea, tafadhali
mtusaidie na Mungu atakuona. Na sio ati ataona sisi, ataona pia nyinyi.
Amb. John Mukuriah: Asante. Sasa tutakuwa na mtu wa mwisho – mama, and then we will
come to you.
Mama: Nasema asante sana Bwana Chairman, na wale watu wamepoteza pesa kama mimi.
Mimi sijapoteza zangu, lakini nilipoteza kwa ajili ya marafiki zangu wale nilisimamia,
walipoteza na sasa kila mtu ako kwa my neck. Wanakuja kwangu wananiambia, mama wewe
ndio uli-introduce mimi. Marafiki zangu walikuja wakaniambia, na nyinyi wajaluo mtaamuka
siku gani. Kuna maneno imetokea hapa; kuja uweke hata kama ni Shs.1,000/- Na mimi nilikuwa
nimekataa hii maneno ya pyramids – maneno ya kupea pesa upate ingine nilikuwa nimekataa
sana. Na mimi niliingia kwa ajili ya mtu alikuja na maneno ya Mungu. Nimeambiwa, hii pesa
ya Donde ni wazungu wa nje ndio wamelete hii pesa wapeane watu; lakini kama kitu ya bure,
huwezi peana kwa sababu watu wataumia huko. Wakasema nilete hata kama ni Shs.1,000/- ikae
huko na nitapewa interest. Nili-work hiyo interest vile walikuwa wanasema nikaona mtu
atakuwa anapata kama 30%. Nikaona, kama kusaidiana ni hiyo, wacha niingie. Nilipoenda
huko nikaona watu wote ni ‘yesu asifiwe’. Siku ile nilikuwa naenda huko kuchukua pesa zangu,
nilikuwa naona tu, ‘yesu asifiwe’. Sasa, shetani akaingilia pesa; mama akasikia Golden,
nikasema hii mpya haitakuwa na line kubwa kama hii DECI. Mimi niliingia December, 2006
lakini sikuingia na pesa mingi kwa maana sikuwa na pesa mingi. Niliingia na Shs.5,000/- lakini
nilikuwa nina-break na five, five, five. Pesa ya kwanza nilingia nayo nilichukua yote, na
sikufanya nayo kazi. Kwa ajili sikuwa na pesa, nikapeleka hiyo pesa nikapeleka Golden –
Sshs.30,000/- kwa Damaris. Hapo sikupata hata ndururu; msichana yangu akanipatia
Shs.4,000/- nikaweka kwa DECI. Walichukua original nikabaki na copies, na sijui one copy
nimepoteza kwa ajili ya confusion. Ya mama mwingine pia nikapeleka Shs.2,000/-. Pesa yangu
kwa DECI iko Shs.6,000/- ya my friends. Friend yangu mwingine pia aliweka Shs.10,000/- uko.
Hawa wananifuata, fuata.
Report of the Taskforce on Pyramid Schemes
353
Tena nikaingia Excelors. Hapo tena nikatafuta watu. Mimi bora nilipata pesa zangu –
Shs.9,000/- Hawa watu wote walipoteza pesa zao. Wananiuliza, mama, wewe ndio uliongea na
sisi na tukapoteza pesa zetu. Mimi ninasikia uchungu kama mtu amepoteza kitu juu yangu. Kwa
roho yangu nilikuwa ninaona ninasaidia, sikujua kama sikusaidia. Na sikusoma nyuma. Ile kitu
ninajua ni kwamba pesa ni shetani kweli. Kwa maana vile niliingia nikijua nikashapewa ya
kwanza sitarudia; nilirudia na mtoto akaniambia, madhe, kwa maana umepata nipelekee;
nikampelekea Shs.4,000/-.
Then Global; nikampelekea tena pesa Shs.4,000/-. Nikaona watu wanaweka, kumbe hawa watu
ni watu wao. Watu wakarudi wanaweka Shs.10,000/-, mimi nikasema wacha niweke Shs5,000/-
ya mtoto kwa ajili hakuwa na kazi na alikuwa anataka kuenda training. Tukasema wacha
iongezeke, nikaongeza Shs.1,500/-, ikawa Shs.6,500/-. Sasa hiyo yote nikakosea mtoto wangu,
na nikamkosea marafiki wangu. Nikarudi nikachukua loan kwa sababu ingine tena ilitokea
inaitwa, Earning Force, nikaweka Shs.50,000/-. Advocate iko hapo, unasoma hiyo kitu na una-
sign, na yeye pia ana-sign. Siku ile nilirudi kuchukua pesa zangu, nikapewa cheque, ika-
bounce. Niliwapelekea hiyo cheque wakasema nitapata cash. Siku ile nilikuwa ninatoka
nyumbani kuja kupewa cash, waliniambia hakuna pesa; ngoja kidogo, kuja on Saturday.
Kuenda on Saturday, nilipewa only Shs.2,000/-; nikasema, asante, lakini mimi nitarudi.
Nikafuata, nikafuata, nikapewa Shs.5,000/- kwa sababu nlisema, kama hamtanipatia pesa na
nimewacha mtu kwa hospitali, mwengine atalala nje ama mimi nilale; muko ready?
Wakanipatia Shs.5,000/- na wakaniambia, pesa zako tunatengeneza. Earning Force iko na pesa
zangu Shs.50,000/- kwa maana they did not give me interest; they did not give me the interest we
agreed on.
Nikaenda ingine na tukapeana Shs.30,000/- - nakuambia pesa ni shetani – walinilipa interest
20% - Winners huko Posta Plaza 5th Floor. Nikapeana Shs.30,000/-. Wakanipatia mara tano,
nikasema huyu ni mzuri kwa maana watu wamefunga wote na hii inaendelea. Nikapeleka
Shs.10,000/- na agreement ya one year. I followed them – kuna watu wenye hawajapata hata
ndururu, lakini mimi nilikuwa ninaenda kama mjinga – naenda nawambia, mtoto yangu, sina
hata hela watu wamekula pesa zangu zote, ananipatia interest. Amenipatia for seven months.
Saa hii, amepotea na hiyo nyumba imekuwa kitu kingine. Lakini interest yangu amenilipa for
seven months – hiyo ya 40,000/-. Amebaki na Shs.40,000/- yangu.
Report of the Taskforce on Pyramid Schemes
354
Global imeenda naye – mimi nilikuwa na mingi; isipokuwa macho ndio hakuna. Kuna ingine
hapa Railways; nikakimbia hapo nikalipa Shs.10,000/-. Kuna ingine Plateau-- Nilipopata
Shs.15,000/- kwa Christian, nikawacha Shs5,000/- kwa Plateau na Shs.5,000/- kwa Christian.
Niliporudi after two weeks kwa Plateau, nikakuta wamefunga. Kurudi kwa line, sikuwa na
receipts. Wakaniambia, mama, hapana jali lakini ukitaka, enda ulete receipts na tutakulipa.
Nilipoenda, walifunga na hiyo pesa ilipotea namna hiyo. Mimi nilikuwa Plateu, Earning Force,
Winners, Excelors, Global, Golden, and DECI Sikuweka pesa mingi, lakini kwangu, it is a lot of
money.
Amb. John Mukuriah: Lakini mama, ambia marafiki wako hao wote walete ma-risiti-- they
must register themselves, tafadhali.
Mama: I have already done that; makosa ni, watu wa nyumbani nilienda ku-recruit huko ndio
mimi nimepiga simu huko-- sijui Kisumu mtaenda lini?
Amb. John Mukuriah: Tutakuambia; there is a date there, tutakuambia. Sasa, next; na
usichukue muda kwa sababu ulikuwa umeongea mbeleni; umalize ili tuombe.
Ms. Lydia Muoki: Mimi nilikuwa nimezungumza; ni kuongezea kwa kuuliza hawa Task Force
niwaulize kama hawa advocates-- walikuwa wanachukua pesa mingi sana. Kama Sasanet,
Camilla and Mwangi walikuwa wanachukua Shs.8,000/-. I do not know whether they are still
going to continue practicing ama namna gani? Mimi ninauliza, hawa watu ‘untouchable’ wenye
wamepewa security hata na serikali – tunasikia – wanasindikishwa na polisi na nini, na
tunasikia pesa ingine imepelekwa ng’ambo kwa banks za ng’ambo. Then this Chege wa Sasanet,
walikuwa na utu tufani banks. I know my friends who have been paid because they are up there
with those people there. I lost 2 million na bwana wangu. Tulijaribu kulipwa but because tuko
chini, maneno ikaenda hivi hivi. Hata hawa polisi wametajirika; hata hakuna haja mtu ajaribu
huko, wacha tu tutegemee hawa. Hata tunasikia ukienda kwa ‘untouchables’ wengine wako
connected na wakubwa. I hope you are going to really-- now that you are the government and
the government ndio wamewaweka hapo, I hope they are going to be transparent because if
surely they are connected, hata pesa yetu ndio ilifanya campaign-- namna hiyo. I hope they
are going to be transparent to you and you are not going to fear and you are not going to fear the
Report of the Taskforce on Pyramid Schemes
355
‘untouchable’ ones and others. And then you check Dubai Bank – hizi banks ndogo za nje;
halafu pesa mingi wamepeleka ng’ambo. So, we will pray for you.
Amb. John Mukuriah: Asante. What we are going to do; first of all we are compiling the
names of all those advocates who were working with these promoters and we have quite a
number of names because they hate corruption and their own nation. So, we have compiled the
names and we are continuing to compile the names. After that, we are going to write to the Law
Society of Kenya so that they can appear before the Commission and clear their names. So, we
will give them a fair hearing; we want to know to what extent they were involved and to what
end they can help us to recover the money for the victims. So, we will comprehensively cover
the situation. Sasa tumemaliza, so I ask if there is a lady who can pray for us. Kama kuna mama
ambaye anaweza kuomba tukimaliza. Na wale ambao hawajaitwa mta-- or do you want to say
something? Ngojea kidogo.
Mr. Philip Gichuki: Chairman, naomba msamaha-- tafadhali mkae kwanza kidogo, one
minute for some announcements. I apologize to the Chairman and the Team. Hapo nje wakati
tunatoka Nairobi maswali ni mengi na tunataka wakati hawa wakienda tumejibu vile tunaweza.
One, confidentiality; kama uko na jambo ambayo ungetaka kutueleza bila kutangaza, ofisi yetu
iko NSSF Building, Block B, wale wenye wanaweza kuandika, 10th Floor; and we shall hold your
information in total confidence.
Two, Chairman, wengine wanaomba documents zao zimepotea – may be during the clashes. We
are saying, we need evidence. Wenzangu, I hope you agree with me that you need police abstract
to show that you lost your documents. But, still you can register, but let us have evidence that
your documents were lost.
The other one, na hapo tuelewane; for the last three days we have been doing public hearing
ambao tumemaliza leo; lakini ile kazi inafanyika nje, is a continuous exercise for the next one
month, tumeelewana? So, tusife moyo ya kwamba, Chairman amefunga; tumefunga public
hearings, which are supposed to enrich the records that you have given us there. Tumeelewana
mpaka hapo? Kuanzia leo tunaendelea mpaka end of the month. It is not only in Nairobi, but
wherever we have a District Co-operative Officer, unaweza kuenda at your convenience.
Report of the Taskforce on Pyramid Schemes
356
Chairman, I think that one is very important so that msikae hapa mpaka saa kumi na mbili na
mlango iko wazi for the next one month. Bwana Chairman, the Provincial Co-operative Officer,
Nairobi (PCO) is here na amekubali kutusaidia. Ofisi yake iko 12th floor, Nyayo House. Ame-
mobilize ofisi yake kwa lengo la kuandikisha nyinyi. Public hearings, Bwana Chairman, I cannot
mention the dates kwa sababu hamtapata zote. Otherwise, every province tutaenda. In Eastern,
tutaenda Meru na Embu kwa sababu tunasikia hii maneno ilikuwa mingi kama vile hapa
tumekuwa siku tatu. Central tutaenda Nyeri, Murang’a na Thika. Tutakuwa Kisumu, tutakuwa
Eldoret. Tutaenda Bungoma kwa akina mzee. Kwa hivyo, we want to capture all the
information. Ripoti ya Chairman na Timu yake haitakuwa na umuhimu kama hamuandikishi
claim zenu. And I want to repeat, Chairman with your permission, the Public Hearing is
supposed to enrich the documentation that we are going to have here; so that wherever the report
will be going, it will speak for itself.
We want you to bear with us; your fellow Kenyans wale wanaandikisha pale wamezidiwa sasa.
Kwa hivyo tunawaomba, if you can go to Nyayo House kuanzia kesho – wale wako karibu,
please bear with the situation. Thank you very much.
Amb. John Mukuriah: Sasa tusimame tuombe. Nani atatuombea? Pastor tuombee, basi.
Pastor Edward Simiyu: Kwanza, ukitaka kusamehewa na ubarikiwe, wewe samehe. Wachilia
roho ya uchungu, ninajua mlipoteza; sasa umepea Mungu kazi ya (?) lakini ukisikia
uchungu, unanyang’anya Bwana Yesu kazi. Na kitu cha pili, ninapoanza maombi fungeni macho
kwa heshima. Baba mtakatifu, Mungu ulieumba nchi na mbingu katika mapenzi yako eh Bwana,
ni wakati ingine njema tumeanza na wewe. Mwokozi Yesu ona vile uliumba mwanadamu kwa
mapenzi yako, na ukaumba shamba la Edeni, ukaweka matunda ndani, ukaweka wanyama ndani,
ukaumba mwanadamu siku ya mwisho, na ukasema, angalia, matunda ndio haya, maziwa ndio
haya, asali ndio hii. Mwokozi Yesu, mwanadamu akafurahi, lakini shetani ni muovu, shetani ni
mdanganyifu. Mwokozi Yesu nakuja kinyume na mapenzi yako ya kwamba huyu muovu shetani,
tulipo letewa hii shughuli ya kuweka tuliona Yesu ndio amezaliwa hapa. Lakini nyuma yake,
pesa ilipotea, tukasikia kulaumu, tukasikia kuhukumu, mwokozi tunaomba msamaha wako. Na
hivi sasa, ninakuja kinyume na hii roho ya uchungu, ninakuja kinyume na roho ya roho ya
upelelezi bure. Mwokozi Yesu napinga haya mapepo kwa damu ya dhamana kubwa. Mwokozi
Yesu, damu iliomwagika Calvary, na damu ambayo sio damu ya ng’ombe wala ya mbuzi, na ni
Report of the Taskforce on Pyramid Schemes
357
ya Bwana Yesu, napiga haya mateko na ziende kwa shimo la Jehanam na isitoke tena, katika jina
la Bwana Yesu. Hivi sasa utupake mafuta Bwana Yesu, tuliza mawazo yote ilio ndani ya roho
zetu. Mwokozi, wale wamehadhiriwa kwa ajili ya njaa, wamehadhiriwa kwa ajili ya masomo,
wajenge upya eh Bwana Yesu.
Hawa viongozi tunawabidhi katika mkoni yako, uwapake mafuta yako mtakatifu, uwape ujasiri,
uwape maongozi mema, uwape nuru. Wakimaliza hii uchunguzi yote na maandiko, wakabidhi
katika serikali na kabla hatujalala siku mbili, tatu, Muokozi Yesu tusikie katika matangazo ya
runinga, katika magazeti ya kwamba Bwana Yesu amerudi mara ya pili; tutakushukuru. Na tena
kwa niaba ya hawa wote wako mbele yako, Mwokozi Yesu ninaweka nadhiri, tutakutokea
sadaka, tutatoa shukurani kwa ajili ya hii naira, Bwana Yesu. Asante kutenda.
Tunaenda mbali, Bwana Yesu, tumekuja na magari inaendeshwa na wanadamu, na wengine
wanaenda humu ndani ya hii town; wengine pikipiki; na wengine hata kwenye ndege kuenda
Garissa na kwengineko popote. Mwokozi Linda kila barabara; weka usalama Bwana Yesu.
Nchi hii tunajua sisi ni wageni, Bwana Yesu. Yale tumenena hapa, kuna wengine kati yetu
wamekuja kutungojea njiani; waturushie mawe; tunauliza usalama kutoka mikononi mwako.
Turudi manyumbani kwa usalama, turudi kwa amani. Wale tuliwacha nyumbani wakute
wamefurahi. Na ni katika jina safi ya Yesu Kristo aliye mwokozi wetu, Amen.
Hearing adjourned at 2.21 p.m.
&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
Report of the Taskforce on Pyramid Schemes
358
MERU PUBLIC HEARING HELD ON 3RD -4
TH MARCH 2009 HELD AT
KAMUNDA HALL
Sampled views
Name of
investor
Scheme Amounts Comments
Faith Mugeni (business lady)
Deci
- 64,000 - Introduced by friends.
Margret kaloki (business lady)
Deci - 580,000 invested on behalf of husband
- Introduced by Pastor Veronica Kariuki
Catherine Wambui
Deci Spell Bus (Deci)
- 19,200 - 160,000 - 6,400
- Introduced by Pastor Karaiuki (GCU church)
- Pastor veronica Kariuki employee of Deci
- Investor auctioned for debt owned to womens group.
Francis Mutumukindia
Deci FINO
- 19,200 - 17,000
- Optimistic that task force will recover the monies.
Muthoni Kenya Business
- 100,000 - Introduced by neighbour. - Promoter is the owner of
Global enterprises (No name given)
John Muriuki Clip Deci
- 310,000 (paid 150,000)
- 12,800
- Sought to know what action will be taken for Saccos which seek to repay funds owned.
Moses Kirihya Deci Sylvia investment
- 6,000 (refunded) - Identified Michael Chege
Name not available
Clip Deci
- 200,000 (paid 66,000)
- Investor had taken loan from bank to buy shamba.
Report of the Taskforce on Pyramid Schemes
359
- 54,600) - Funds diverted to pyramid schemes.
Harrison Muthoni
Deci - 220,000 - Commented that victims may have more faith in the private initiatives since government had left a vacuum.
Milka Njeri Deci - 292,000 - Amount realized after sale of plot containing the matrimonial home.
- Husband died of depression leaving her with 3 children & no job.
-
Name of
investor
Scheme Amounts Comments
Kenneth Kiambi George
Deci - 11,000 - Expectation is referred of money.
Florence Muriithi
Deci - 210,000 - Faith in task force
Nicholas Muriuki
Deci - 104,000 - Sought to know mode of recovery for invested amounts.
Kitito Deci - 113,000 - Promoters should be questioned as to the whereabouts of the money.
Daniel Kinyua Clip - 310,000 -
Joseph Tharaira Kemen
FINO Mont blac Deci
- 80,000 - 300,000 - 100,000
- Mont blac depositor through equity
Janet Ethagatha - - Noted that low form out may be accounted by parallel meeting pig & whistle.
Report of the Taskforce on Pyramid Schemes
360
EMBU PUBLIC HEARING HELD ON 5TH MARCH 2009
Sampled views
Name of
investor
Scheme Amounts Comments
Samuel Muturi (Chair of private initiative)
Several
- Deci – 22m - FINO – 10m - Global – 7.4m - Others – 40m - Total – 80m
- Chair thanked group for job well done.
- Documents to be handed to secretariat
Rev. Peter Mutegi
Clip Deci FINO Circuit Spell
10m 1,415,600 167,000 750,000 100,000
Rev. urged members to register at DCO office and to be wary of comment out to take advantage.
Pastor Moses Njeru
FINO 550,000 He is in possession of documents from some investor To hand over documents to secretariat.
Pastor Njeru
Deci Clip
1,000,000 Recommended that accounts should be frozen.
Lilian Waweru
Clip 1,700,000 - lost her entire retirement benefits in the scheme. - emphasized on the need of civil education on investments.
Johnson Ireri Kivuti
Kenya Business Clip
1,000,000 2,000,000
- Investor recounted how he had faced many woes including death of son & sickness of wife. - He said that he had been reduced to a pauper.
Pastor Jamleck Muthile
Deci (Promoter/Manager)
- Resigned at CMC motors and recruited as Deci manager/promoter.
- He opened company jointly with wife for purposes of making payments.
- It was agreed that the task force
Report of the Taskforce on Pyramid Schemes
361
would summon him for further queries & clarifications.
Mr. Kirangu
FINO (Manager)
- Introduced by Rev. H. N Kamundi (agent FINO Mt. Kenya Region)
- Admitted that be recruited investors but did not have records of the total amounts invested.
- To be summoned for clarification.
Name of
investor
Scheme Amounts Comments
Pastor Richard Njeru
Deci (Promoter)
- Recruited by Jamleck for promotion purposes
Mrs. Mureithi
Deci (agent)
- Recruited by Jamleck. - Investor in Deci - Urged Jamleck to furnish the task
force with documents.
Joseph Muthee Mutheka
Kenya Business
- Investor had taken a car loan from Kenya Business.
Report of the Taskforce on Pyramid Schemes
362
NYERI PUBLIC HEARING HELD ON 10.03.2009
Sampled comments
Name of
investor
Scheme Amounts Comments
Rhoda Gichohi Clip Deci
100,000 32,000
-Paid two instalments of 20,000 by clip i.e 10% p.m -Lost all money in Deci
Julius Karuiki Spell Circuit Clip Capital Fino Golden life
356,000 250,000 107,000 65,000 50,000 10,000
-The investors had engaged an advocate to pursue the funds but to no avail. -Had high expectations that the task force would assist in the recovery of the funds.
Simon Kariuki Clip 400,000 -Named Peter Ndakwe as the director of clip.
Solomon Wanjohi
Deci 18,000 -Invested various amounts on behalf of his family and mother in law.
Timothy Gikonyo
Deci 10,000 -Persuaded to join the scheme by religious leaders who were the promoters.
Simon Wachira Deci 34,200 -named George Donde Odinga as the director of Deci. -He recommended that certain senior government officials who he did not name should be investigated.
Bishop Peter Muturi Ndegwa
Deci -Was a promoter of Deci -He met George Donde who assured him of the legality of the scheme. -Confirmed that money was collected remitted to Nairobi who repaid back investors through the center offices. However the payments sought and the directors disappeared
Bishop Peter Muturi Ndegwa (cont’d)
The flow of transactions was summarized as follows; Money deposited(Deci center office)……………remitted to
Report of the Taskforce on Pyramid Schemes
363
Nyeri………….payments to investors thro’ Wireless Transactions Network. -Signatories were Bishop Ndegwa, Bishop
Wachira Karani and David Muchuki.
Name of
investor
Scheme Amounts Comments
Bishop Njoroge Deci -Commented that pastors who were promoters were assisting in the recovery efforts. -Recommended that the task force should not be disbanded until after all the money has been recovered and repaid back to investors.
Irene Wanjohi Deci 32,000 -Lost all the money
Joseph Gitonga Deci 20,000 -Invested the money on behalf of his wife.
Josephine Mureithi
Deci 5,000 -Lost all the invested money.
Report of the Taskforce on Pyramid Schemes
364
MURANGA PUBLIC HEARING HELD ON 11.03.2009.
Name of
investor
Scheme Amounts Comments
Wilson Mwangi Deci 1,500,000 -He identified Pastor Peter Ndegwa Muturi as a promoter in the murang’a region. -That cheques were being written in the personal names of the some of the center managers.
Benson Kamau New Akiba 400,000 -Deposited 400,000 being the deposit of a vehicle where the financing would be financed by the scheme. -Two cheques were issued but they bounced -Identified Joshia Adunda, Michael
cheruiyoy, Gabriel Mugambi and
Abraham Mbiko as the directors.
Anastacia Wanjiku Warui
Deci 4,500 -joined the scheme because of religious reaons. -Recruited by Pastor Njenga of deliverance church.
Joram Irungu Deci 32,500 -Former student at Kenya Medical Training College who had to discontinue school as he lost all the money meant for fees to Deci.
Pastor Bernard Irungu Mwai
Deci (promoter)
-Recruited by Bishop Ndegwa and invited to Nyeri where they were recruited as promoters to be paid on a commission basis (10%). -Banks started to refuse accepting deposits. Thereafter payments were made by bankers cheques and forwarded to the head office.
Agnes Wambui Waweru
Deci 200,000 -Commented that relatives and friends of the pastors were recruited as employees
Julius Wachira Maina
Clip Undisclosed -Identified Peter Ndakwe as a director.
Agnes Wakonyo kiratu
Deci 52,000 -Receipts destroyed by a fire incident at Nairobi. -advised to obtain a police abstract before filing her claim with the DCOs office.
Evelyn Wanjiru Gitau
Pesanet Deci Exceller
7,000 25,000 100,000
-Investor joined because the schemes were run by pastors.
James Nyota -Urged members not to condemn the private initiatives as they had pursued the funds before the government intervention.
Thomas Deci 100,000 -Sold vehicle and invested part of the
Report of the Taskforce on Pyramid Schemes
365
Thiongo proceeds in Deci. -Was introduced by Pastor Irungu and Bishop Kaniaru.
THIKA PUBLIC HEARING HELD ON 12.03.2009
Sampled comments
Report of the Taskforce on Pyramid Schemes
366
Name of
investor
Scheme Amounts Comments
Pastor Kamau Wanderi
Deci (promoter)
-The pastor gave a comprehensive written brief touching on the identities of the Deci directors, reasons why people joined deci, how promoters were recruited and his recommendations. -The written brief and contacts were furnished to the directors.
Mrs. Mugucia Deci 200,000 -wondered whether report will be made public
Joyce Kamau Clip 400,000 -Relocated from the U.S.A. Husband is deceased. Used money set aside for a shop business to invest in clip which recruited on religious grounds.
Alice Wanjiru Deci 4,000 -Had intended to use funds to take her sick child to Kenyatta hospital for further treatment. Child still at home due to lack of money for treatment. -Pastor Kamau Wanderi proposed that am impromptu harambee be conducted to assist the investor take the sick child to hospital.
Rev. Francis Njuguna
Deci 167,000 -Identified Bishop Gakure of CCI International as one of the directors of Deci
Joseph Chege Deci 110,000 -Sought to know the action been taken by the government to ensure that the perpetrators of the pyramid schemes are brought to book.
Tabitha Mbatha Akiba Microfinance
226,000 -Funds invested meant for the purchase of a vehicle upon retirement. -she recounted how a friend died after losing 300,000 in the collapsed Akiba Microfinance.
Peace officers for Christ International
-He informed members that this scheme which purpoted to advance hefty business loans at attractive rates upon payment of a registration fee and submission of a business plan was in operation in the Kasarani area.
Margaret Mukami
Deci 14,000 -sought to know if she should register again as she had already done registered with a private initiative.
Stanley Mwangi
Deci 40,000 -Lost all the money invested.
John Mburu Clip 310,000 -sought to know whether clip is still
Report of the Taskforce on Pyramid Schemes
367
Mugo registered.
KISII PUBLIC HEARING HELD ON 17.03.2009
Sampled comments
Name of
investor
Scheme Amounts Comments
Report of the Taskforce on Pyramid Schemes
368
Ambrose Francis Nyangerania
Deci promoter
-He recounted in detail how he together with other promoters met George Donde who introduced them to the concept of Deci. -Although the promoter was reluctant to admit that he had documents in his possession a 3 man team from the members of the task force led Amdassador Mukuriah managed to convince him otherwise after a brief discussion with him in camera. -A flashdisk was availed by the promoter and the information copied by the secretariat.
Undisclosed Named Charles Bokwero Mani from the Redeemed Gospel Church as a promoter.
Daniel Onsanga Global Deci
385,000 30,000
-The amount invested was amount raised through contributions by members of his family. -Said that some members of his family were now suffering from diabetes and high blood pressure. -Named the following as directors of Global;
• Timothy M. Mwangi
• Jacinta Wangui Mwangi George Abuda Obodo
Faidi Kenya
Joseph Ontari -His child who was undertaking a degree course had to drop out as a result of lack of fees.
Thomas Global -Lost all the money. -Has expectations that the money will be recovered and sought for an assurance from the chair of the task force that the recommendations of the task force will be fully implemented.
Zebedeneyo Acid -He claimed that Acid was still continuing with its operations and advised the task force to look into the matter.
George Manayara
Deci promoter/ investor
-He gave a brief history of Deci. -He was a promoter of Deci for a period of 6 months i.e Jan-June 2007. -He stated that a few initial members benefitted but the majority lost.
Report of the Taskforce on Pyramid Schemes
369
-Submitted write-up with recommendations.
KAKAMEGA PUBLIC HEARING HELD ON 18.03.2009
Name of
investor
Scheme Amounts Comments
Caleb Sitama Deci Global
Not disclosed -He argued that investors desperate to recover their money were instead losing money trying to pursue the directors of the various schemes through the private
Report of the Taskforce on Pyramid Schemes
370
initiatives and advocates.
Titus Masakhasia
Deci 82,000 -He insisted that the government was to blame since deci was registered by the government and security provided on various occasions.
Zainabu Wambui
Deci 12,800 Named a Mr. Benedicto Kiziti as promoter
Doro Ingolo Community Restoration Support Agency
He linked Hon.Ligale and his wife to the scheme
Abdi KAdim Inquired about the status of the pending cases against George Donde and what action would be taken against him in light of the pending cases.
M. Kigwei Acid -Named Zacharia Chimegerio as a director.
Steven Deci -Has sought the intervention of the area O.C.S who was known to him in a bid to recover the money but to no avail.
Zipporah Deci -Alleged that some people carried documents from the Deci offices after Deci collapsed. -She identified Hon. Ligale and the wife as having taken part in the scheme.
Lilian Waburie Deci 359,000 -Took a bank loan from the Kenya Women Finance Trust and invested all the money. -She was chosen as a regional chairlady of the private initiative led by Kinyua -Subsequently arrested and locked up for a few days on claims of extorting money from investors a claim she denied by saying that the money was registration fees.
James Atema Deci Acid
5,000 12,800
-Sold a cow to finance the investment. Identified the following as promoters of Deci;
• Aggrey Embuza- Vihiga
• Charles Otwori-Mumias
• Benedit Kizito
Caroline Isiakho
Deci Acid
4,000 4,000
Identified a Mr. Zachary Chimekeru as a director of Acid
Name undisclosed
Deci -Identified Vetalia Vitingo from
Kakamega North as a promoter
Margaret Mubanyi
Global Acid Deci
15,000 -schemes promised poverty eradication -Named Henry Shikaru currently a councilor as a promoter
Report of the Taskforce on Pyramid Schemes
371
BUNGOMA PUBLIC HEARING HELD ON 19.03.2009
Sampled comments.
Name of
investor
Scheme Amounts Comments
Elizabeth Naliaka
Deci 14,000
Ngugi Deci Introduced by a Mrs. Murugi of winners Chapel. -Urged the task force to pursue Donde who would provide further information.
Report of the Taskforce on Pyramid Schemes
372
J.Lisande Deci Christian Family
9,600 5,000
Janet Wasirwa A&A- promoter
-Named Mary Osienju as the director
Zubedi Munyendo
Deci 35,000 -Recruited to join Deci by a Mr. Justus Murunga who had vied for a civic seat
Judith Nyongesa
Swop A&A
12,400 (double after 2 days 1,400
-named Agnes Muliro as the director -Pastor Daniel Omuse took the original receipts.
Dennis Osudwa Deci A&A
72,000 262,000
-His confidence to invest in Deci was boosted by the presence of armed APs guarding the Deci offices and the registration certificates displayed at the door.
Leonard Namambu
Deci- promoter
-Together with other investors they met Donde on several occasions who explained that Deci invested in off shore investments but would not disclose the details because of competitors. -said that Don Donde, son to George Donde was the manager Nakuru branch
Paul Orapa Deci -was a clerk at Deci. -said that George Donde had a meeting with pastors.
Anne Munyasia Simiti
Deci manager- Bungoma
Gave an account of the procedures for investing at Deci.
Cecily Ondiek Swop -Named the wife to former M.P of Ugenya Ondiek as the owner of Swop.
Augustine Wesonga
Deci 100,000 -Said that some of the promoters intended to use the money for the 2007 campaigns. -He added that the government was aware of the activities of the scheme as security was provided to ferry cash.
Report of the Taskforce on Pyramid Schemes
373
KISUMU PUBLIC HEARING HELD ON 20.03.2009
Name of
investor
Scheme Amounts Comments
Zuleya Odera Deci 19,200 - Named George Donde as the promoter. -Informed members that promotion was conducted through churches.
Joseph Odhiambo Owino
Deci (promoter)
-Operated from Kondele center. -promoter promised to avail all the documents in his custody to the task force.
Shadrack Oduor Deci 50,000 -employee of the Ministry of health
Caleb Oganda Deci (promoter)
-Informed task force that he was recruited by George Donde together with other people.
Report of the Taskforce on Pyramid Schemes
374
-He named the directors of deci and Liz Okwaro as the manager of kisumu branch -Lilian Adhiambo Ogola banked money received in her personal bank account.
Rosemary Adungu
Deci-promoter/ investor
200,000 -submitted a copy of documents to the task force
Undisclosed Clip Undisclosed -said that the clip directors had disclosed willingness to repay and wondered what action would be taken in such instances.
Emily Earningforce Circuit Clip
100,000 200,000 200,000
-lost all the money.
Maurice Odhiambo Saoke
Deci 6,000 -sold cow and invested the money in deci.
Martin Oranchia
Deci 36,000 -His belief in the legitimacy of the schemes was motivated by presence of government officials in meetings.
Joshua Omukhasa Otieno
Clip 930,000 -The amount invested had been contributed from self and close family members. -He urged the task force to ensure all the funds were refunded.
Margaret Onywera
Circuit Fino
770,000 100.00
-She submitted that Hon. Kimunya was allegedly the owner of Fino.
Charles Odhiambo
Deci -Had been recruited to register people on a commission basis but was never paid for services rendered.
George Omaru Circuit 300,000 (x2 after 6 months)
-Named Edna Wangari as a director -said that there are court cases pending against directors of various schemes at the courts.
Report of the Taskforce on Pyramid Schemes
375
NAKURU PUBLIC HEARING HELD ON 25TH MARCH 2009
Sampled comments
Name of
investor
Scheme Amounts Comments
Joseph gichuki Deci 6,000 Lost all the money. Names on receipt- Boaz, Musyomi Introduced by friends.
Teresia Kamau Deci Global Pesanet
12,500 21,000 3,500
Expectation is to recover the principal amount invested. Introduced by Monica Kuria and the husband
Deborah Naiywa
Deci Pesanet
101,000 3,500
Deci promoter- Pauline Kinuthia Expectation-money to be refunded
Stephen Mutisya
Deci 120,000 Center managers-money taken to them
Peter Deci 1,000,000 Money invested in registered schemes.
Report of the Taskforce on Pyramid Schemes
376
Expectation-whether money will be refunded from the culprits.
Regina Kimani Global Deci ACID
110,000 14,500
ACID based in Uganda. Manager is Mildred and Sarayi. Own a laboratory in Nakuru and two buses Global owner has a big hotel on Mombasa road.
Joseph Lusimbo
Deni Provera Taifa Options
100,000 12,000 (1,000 from each person)
Investor chosen as a member of a private initiative. Initiative called Taifa Options led by a Mr. Macharia took investors money on the pretext that they were following up the money.
Salome Wambui
Deci 20,000 Deposited money because of the church based promoters. Funds meant to be school fees for the kids. Funds should be recovered from George Donde. Manager- Mr. Osembo
Pastor Muiruri (Deliverance church)
Deci 370,000 (on behalf of wife, kids and church)
-Introduced by Bishop Mark. -Investor has met Donde who explained DECI concept to him. -Pauline wife to Pastor Francis who had benefited. -Investor was the chair of pastors fellowship Gilgil introduced the other pastors in Aug. 2007 thereabout. -pastor introduced other congregants. -Pastor confidence was boosted by KRA receipts and other receipts.
Name of
investor
Scheme Amounts Comments
Sammy Mugo Deci -Employee of Deci. He is in custody of members register at Subukia office. -Blamed the government for failing to take action promptly.
Grace Awino Sasanet 500,000 (Minimum investment)
-Grace Wesonga- manager of sasanet office in Nairobi. -Mike Chege- Chairman -Investor was a retrenched telkom employee
Deci 300,000 -Nurse by profession Took a loan.
Report of the Taskforce on Pyramid Schemes
377
-Was convinced by gospel music from the offices. -took original receipts and told investors to open bank accounts in family account
Joseph S. Macharia Mwangi
Deci 12,000 -Chris and Carol convinced investor that the investor was genuine. -Invested money meant for school fees for the daughters. -Inquired about the status of unregistered claims if compensation is made.
Michael Simiyu Deci 6,000 -Manager Deci Biashara Center- Carol
Robinson Kuria Winners Circle- Inc. in U.S.A.
240,000 -Company registered in 1998 as Winners Circle Int. Ltd. -Rev. Christopher L. Ndungu (Streets of Life Ministries) was the major C.E.O. -Former M.P Alicen Cheraite Rono opened an office in Gilgil to recruit investors. -List of members (over 400) to be tendered. Members had paid a total of over 60 million. -Scheme had paid/mailed money which was to be repaid with a bonus. -Co. had brochures of packages sold to investors e.g holiday packages, etc. -Investors have approached government agencies. Requested for gvt intervention.
Marim Rashid Deci Global Provera
100,000 7,000 7,000
-Investor who is a retrenchee prescribes to the muslim faiths who do not accept interest. Manager of Deci- Biashara Carol
Paul Mwangi Maina
Kenya Business Community
30,000 -Director- Mr. Kinoti -It offered attractive loans.
Nancy Wambui Deci 13,000 -Introduced by a friend. Lost all the money. -Receipts lost when house was burnt during the electoral violence.
Name of
investor
Scheme Amounts Comments
John Kimani Clip Investment
100,000
-Directors misled investors that accounts were frozen by the government.
Winnie Clip Invest. 1,800,000 -
Harrison omuyapa
ACID -Registration fees was based on the number of children at 2,000 per kid. -Pastor Sarai was in charge of Nakuru region.
Report of the Taskforce on Pyramid Schemes
378
Isabella Wandabu
Spell Investment 17% p.m
250,000 -Was repaid 2 cheques of 42,000. -Agreements were signed before an advocate.
Grace Amukara FINO 100% after 2 months. DECI Provera
40,000 10,000 3,000
-Introduced by a pastor. -Pastor Dr. Wanyoike was the founder. -Catherine was the manager FINO Nakuru.
Kinyanjui Spell Clip Circuit
-Advocate assured investors that the scheme was genuine. -Investor argued that Hon. Kimunya was the cause of their problems.
Joseph Muchiri Market Systems.
-4,000 approximately paid to a coop account upon opening an e-mail a/c.
Zachary Mwangi
Deci 100,000 -Youth who is a casual labourer has lost all his investment. -Requested the gvt to refund the money
Poverty Eradication Education in Kenya
-Women group. Registration fee was 2,000. -Promised jobs and money. The patrons disappeared after the participants had convened a meeting at KICC.
ELDORET PUBLIC HEARING HELD ON 26.03.2009
Sampled comments
Name of
investor
Scheme Amounts Comments
Ester Kabon Rogocho
Deci 47,400- self -17,800 child
Investor speaking in Kalenjin through an interpreter. Found Abraham, David and Ruth as the promoters. Promised money would be doubled. Lost all the money -Expectation is for money to be refunded.
Eunice Soweti Kenya Business Provera Deci Capital investment
100,000 200,000 96,000 220,000
-Invested said that Hon. Kimunya thro ministry of Finance had warned of the danger of pyramid schemes. -Paid 2 installments of 16% in Kenya Business
Dua Clip 150,000 -Identified Peter Ndakwe as the director and that the scheme had existed for 10yrs
Report of the Taskforce on Pyramid Schemes
379
Alice Osei Deci 96,000 -Wondered why Deci people and their agents were provided with security. -Joe Donde (son of George Donde) & wife Carol held a meeting at Eldoret. -Retired General Agoi attended a meeting at deliverance church hall as a promoter. -Bishop Gichana of deliverance church was one of the promoters in Eldoret.
Stephen Agula Deci -introduced thro’ the church. -Lost receipts when house was burnt during the election violence.
Clip Circuit
-Said that the National Pyramid Initiative Schemes was demanding 400/= -Sold matatu and invested the funds at Circuit. -Weche was the promoter
John Buliba Anyanzwa
-Investor has numbers which has still has active numbers. -0723-451605- Ngetich-Cashier Deci
-0720-303673 Minic Ogutu 96,000 -convinced to join by wife who was a
teacher. Intended to use the money to build money
Timothy Mungai
Deci -sold all animals and took the money to the Deci
Esther Kilimo -Her expectation is to be repaid the amounts invested.
Name of
investor
Scheme Amounts Comments
Benjamin Kibet Clip Deci Pesanet
100,000 60,000 14,000
-Invested because other previous investors benefited. -Directors have assets and other investments. -recommended that the government to repay and follow up on the culprits
Frida Okundi Deci 45,000 -wife to pastor Shitanda was a Deci promoter. -Inquired about the status of frozen accounts.
Charles Ogonji Deci 20,000 -mentioned deliverance church pastors were promoters.
Pastors Peterson and Madegwa –
Deliverance Church
Report of the Taskforce on Pyramid Schemes
380
Samuel Juma Deci- Investor/ promoter
700,000 -Not in possession of documents.
Margaret Wairimu
700,000 -Retrenchee Telkom. Invested all her retrenchment earnings. -Met Njenga(cashier) at Zuli arcade - Named Judith Donde-sister to Donde-
0720753912
-Has communicated with the investor severally.
Pastor Samuel Tarus
Deci Pesanet Global
1,180,000 27,000 6,000
-Christine Kegothe-promoter eldoret. -deliverance church participation was merely provision of venue. -Submitted that all the money was collected at the centres. -Noted that the main problem was lack of implementation of the recommendations. -That the investors can be mobilized to compel money to repay the funds.
Fred Odimba 50,000 -Ngetich who was a cashier at Deci has businesses.
Daniel Ndutu -Said that deliverance church is used as a venue and has even been previously used by the government.
Evalyne Shipala Liversprings manager deci
-liversprings was promoting on behalf of Deci.(A subsidiary of Deci) She named the following promoters;
Don Donde son to Donde-0722 386678
David(Nyota hse) Manager -0724-896256
Ibrahim-(nyota Hse)-0720-997769 Pastor Francis Deci Ben Njenga-center manager-Zuli arcade
Juliet Juma - 0723472789 center manager (Emanuel Hawai) and currently Barclays sales manager Eunice- cashier