The Directorate of Criminal Investigations (DCI) has issued a warning to Kenyans after concerns were raised over a pyramid scheme that has duped and robbed thousands of unsuspecting Kenyan citizens.
In a statement released on Wednesday, the investigators revealed that they had received numerous complaints from investors who were now crying foul after losing millions of Kenyan Shillings to NMK Capital Investment Limited.
According to the DCI, NMK Capital Investment Limited is believed to have been registered in Kenya in 2021. It has seven directors, including a Kenyan.
“Lately, the DCI’s Serious Crime Unit has received numerous complaints from victims who ventured into the scheme, laying claims that nothing is left of their thousands and millions of investment after the directors fell out and the key suspect holed up,” the statement read.
Investigators further uncovered that the main pyramid scheme had close ties to another sister company, Bidsworth Autorents Capital Limited. The two companies are located in Nairobi City’s Central Business District (CBD).
Substantial losses and loss of assets
Over 5,000 investors were enticed into six-month contracts with the scheme, with each individual contributing Ksh50,000, according to the DCI.
“This would accrue a redeemable monthly interest of 15 %, or a similar percentage of compounded interest redeemable at the end of the contract period (6 months),” DCI explained.
The investigation also revealed that the company had expanded its operations to offer car hire services by leasing vehicles from unsuspecting members of the public, which were then rented out to individuals and agencies.
“Car owners also allegedly received 30 % of the proceeds from the company. Other ventures included off-plan properties.” the DCI added.
As the scheme unraveled, investors reported substantial losses from their investments and payments made for off-plan houses.
Additionally, some of those who had leased out their vehicles could not locate them. The DCI issued a stern warning, emphasizing that the two companies were currently under active investigation and posed a significant financial risk to the public.
“We call on Kenyans to exercise caution and due diligence before engaging in any such ventures whose proprietors’ sheer greed for riches is founded on fraudulence,” cautioned the DCI.