Two Women Charged With Running Unlicensed Investment Scheme in Nairobi

Two women have been charged at the Milimani Law Courts in Nairobi with operating an unlicensed investment scheme.

The suspects were arrested on Tuesday and appeared in court the following day. They are accused of managing a collective investment scheme without approval from the Capital Markets Authority (CMA).

Prosecutors allege that between January and mid-September this year, the two women encouraged members of the public to trade in securities by making misleading claims and promising returns. Both denied the charges and were released on a bond of Ksh200,000 each.

The case follows a joint investigation by the CMA, the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecutions (ODPP).

In a statement, the CMA confirmed that the suspects had been presented in court for plea-taking. It said the charges relate to alleged fraudulent investment activities.

The prosecution comes days after the CMA warned the public about 15 entities offering financial products without the required regulatory approval. The entities were involved in areas including cryptocurrency, foreign exchange trading and money market funds. The investment scheme linked to the two suspects was among those named in the regulator's advisory.

The CMA has repeatedly advised investors to check whether financial intermediaries are licensed before committing their money. The regulator's online portal provides information on approved market participants.

CMA chief executive Wyckliffe Shamiah has also warned that unregulated investment schemes can expose members of the public to significant financial risks. He has noted that digital platforms have made it easier for operators to solicit funds from investors across borders.

The suspects will remain subject to court proceedings as the case moves forward. The prosecution forms part of the CMA's efforts, alongside law enforcement agencies, to address investment operations that are conducted without the required regulatory approval.