Desperate Kenyans Lose Billions to Cunning Fraudsters

The Kenyan investment community has been rocked by the recent arrest of businesswoman Pascaline Peter, also known as Passy Matravor.

She stands accused of orchestrating a Sh350 million fraud through her company Pafrim Investment Limited, leaving over 200 investors in financial distress. Ms Peter is scheduled to appear in court to face charges of obtaining money under false pretenses, among others. This case has brought to light a broader issue of investment fraud in Kenya with over 200 individuals investing in plots sold by Pafrim Investment. However, only 106 have officially filed complaints, highlighting the challenges victims face in seeking justice. Many find themselves embroiled in protracted legal battles, often with little hope of recovering their lost funds.

The Pafrim Investment case is not an isolated incident but rather part of a troubling pattern of fraudulent schemes in Kenya. One of the most notorious examples is the Ekeza Sacco scandal, orchestrated by politician David Kariuki, known as Gakuyo. Charged with defrauding the public of over Sh1 billion through false claims of real estate and money market investments, Gakuyo's ongoing trial has left many victims feeling disillusioned with the justice system. Despite being granted a Sh10 million cash bail, the case's slow progress has raised concerns about accountability for those in positions of power.

Other fraudulent enterprises that have caused significant financial distress among Kenyans include Suraya Housing Scheme, Lesedi Developers, Banda Homes, Gifford Agencies, and Worthstart. These schemes have not only affected property investors but have also targeted job seekers, exacerbating an already challenging employment market. In a related case, First Choice Recruitment and Consultancy Agency, run by Judy Jepchirchir, has been ordered to refund Sh1 billion to over 8,000 victims who paid for nonexistent job placements abroad. Despite intervention from the Senate committee, the refund process remains stalled, leaving countless hopeful job seekers in financial limbo.

Many of these victims hail from regions already grappling with high unemployment rates, such as Uasin Gishu, Trans Nzoia, Nakuru, and Elgeyo Marakwet counties. The workings of Ms. Peter's fraudulent scheme involved operating as a shylock and soliciting investments in her purported real estate business. She lured victims with promises of a 30 percent monthly return on their deposits. To add credibility to her operation, she directed clients to deposit large sums into various bank accounts linked to established institutions like Equity Bank and Cooperative Bank. Once payments were received, she would abruptly cease communication and disappear.

Investigations have revealed that Ms. Peter's fraudulent activities extended to several real estate projects, including Imani Gardens and Neema Gardens. She falsely claimed that all plots in these developments had been sold and enticed investors with promises of smart home designs and expedited title deed processing. The rising prevalence of such scams has prompted many Kenyans to call for stricter regulations in the investment and job recruitment sectors.