Report Of The Taskforce On Pyramid Schemes

Report of the Taskforce on Pyramid Schemes

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REPUBLIC OF KENYA

MINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETING

Report of the

TASKFORCE ON PYRAMID SCHEMES

CHAIRMAN HON. FRANCIS NYENZE

PRESENTED TO:


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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

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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

……………………


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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


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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


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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


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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


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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.

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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


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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


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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


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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


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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


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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


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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


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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.


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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


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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


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(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


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(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.


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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


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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.


24

PART 1

INTRODUCTION AND HISTORICAL

OVERVIEW


25


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.


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.


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.


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.


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).


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


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.’


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.


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.


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.


45

PART 2

PYRAMID SCHEMES: A DETAILED

ANALYSIS OF THE KENYAN

PERSPECTIVE


46


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.


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.


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)


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


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.


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).


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.


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)


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


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.


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.


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.


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.


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


60

.Figure 4: Gender representation of investors (Nairobi province)


Notes:

From a sample of 56,234 victims drawn from Nairobi province, the female

investors were more than the male.


61

Figure 5: Amount invested as per gender


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.


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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;


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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


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.


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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.


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.


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.


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).


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.


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.


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.


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.


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.


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.


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


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


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


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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


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5.2.1.9. Kenya Business Community Sacco


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


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5.2.1.12. Smart Welfare Strategy Farm


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


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)


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).


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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)


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5.3.1.15 ACID: Kakamega Branch, A/C NO. Kakamega


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;


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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


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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.


85

5.3.3.2 Sylvia investment


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.


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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.


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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.


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.


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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.


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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


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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


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.


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.


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


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


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.


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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.


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


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


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.


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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


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.


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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


on 5.6.2007 and


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


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


on 17.3.2008 and


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


on 11.7.2007

Registration cancelled after inquiry

established that the society was carrying out

pyramid related activities.

Tujibebe

Investment

Ltd


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.


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Tujibebe

Sacco Ltd


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.


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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


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.


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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).


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.


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(iv) Enforcement Agencies

Law enforcement agencies to exercise vigilance in their duty to avert

occurrence of pyramid schemes operations in future.


109

PART III

THE WAY FORWARD


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


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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


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


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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.


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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


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


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


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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


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


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.


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


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.”


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.


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.


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


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.


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;


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


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.


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


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


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.


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.



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.


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.


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.


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.


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


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.


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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.


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


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


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


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



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 ,,


Festus Kizisa Clip Hon. Secretary


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


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


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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


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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


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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


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:


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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


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.


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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--


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.


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


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.


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.


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


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.


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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?


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?


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?


(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.


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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?


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?


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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?


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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


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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?


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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?


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?


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?


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.


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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.


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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.



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Hon. Francis Nyenze: Thank you, Rosemary. Were you dealing with the same

directors as Akinyi?


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.


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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?


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.


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.


187

Amb. John Mukuriah: Uh, Development House?


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.


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?


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.


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?


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?


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?


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.


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.


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?


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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?


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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.


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?


Hon. Francis Nyenze: After how many months?

Ms. Rosemary Wairimu: After one month.


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?


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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/-.


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.



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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.


Amb. John Mukuriah: And also for Mac Investment also through a colleague?


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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.


Hon. Francis Nyenze: Sorry, poor you.

Amb. John Mukuriah: And Circuit, Rosemary, through friends?


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


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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?


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


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?


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.


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.


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.


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.


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.


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.


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.


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.


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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?


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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


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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.


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,


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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.


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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


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.


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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


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.


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.


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%


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.


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.


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


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


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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


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.


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?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


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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,


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.


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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.


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.


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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


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/-.


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.


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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.


Mr. Charles Kibe: I invested in more than two schemes.


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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


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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?


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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


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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


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.


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


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


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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.


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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


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


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.

&&&&&&&&&


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VERBATIM REPORT


25TH FEBRUARY 2009


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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


Ms. Roseline -


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.


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(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


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?


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?


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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


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.


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.


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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?


Mr. Mwai Ruingi: Post Bank, Kenyatta Market?


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.


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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.


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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.


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.


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


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.


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?


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


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?


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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


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)


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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?


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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


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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.


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


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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


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.


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.


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: Where are they?

Mr. Joram Lunjalu: I have already given them.


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?


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


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


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?


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


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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.



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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.


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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.


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-


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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.


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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


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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


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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.


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


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.


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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.


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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.


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.


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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.


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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.


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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.


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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--


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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


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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--


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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


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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


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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


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(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


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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.


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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.


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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.


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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.


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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


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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.



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VERBATIM REPORT



299

26TH FEBRUARY 2009



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


Mrs. Roseline Ragama



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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.


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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


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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.


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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.


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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


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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


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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.


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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;


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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.


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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


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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.


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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


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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


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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.


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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


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


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


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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


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


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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


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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


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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.


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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.


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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.


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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


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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


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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.


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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.


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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.


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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


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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)


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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.


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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


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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.


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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.


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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--


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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.


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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.


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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


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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


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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


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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?


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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


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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.


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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,


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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.


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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.


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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.


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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.


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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.


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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


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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


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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.


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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.


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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


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‘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.


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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


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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.


&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&


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.


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


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.


360

EMBU PUBLIC HEARING HELD ON 5TH MARCH 2009

Sampled views

Name of

investor


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


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


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.


362

NYERI PUBLIC HEARING HELD ON 10.03.2009

Sampled comments

Name of

investor


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


363

Nyeri………….payments to investors thro’ Wireless Transactions Network. -Signatories were Bishop Ndegwa, Bishop

Wachira Karani and David Muchuki.

Name of

investor


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.


364

MURANGA PUBLIC HEARING HELD ON 11.03.2009.

Name of

investor


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


365

Thiongo proceeds in Deci. -Was introduced by Pastor Irungu and Bishop Kaniaru.

THIKA PUBLIC HEARING HELD ON 12.03.2009

Sampled comments


366

Name of

investor


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


367

Mugo registered.

KISII PUBLIC HEARING HELD ON 17.03.2009

Sampled comments

Name of

investor



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.


369

-Submitted write-up with recommendations.

KAKAMEGA PUBLIC HEARING HELD ON 18.03.2009

Name of

investor


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


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


371

BUNGOMA PUBLIC HEARING HELD ON 19.03.2009

Sampled comments.

Name of

investor


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.


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.


373

KISUMU PUBLIC HEARING HELD ON 20.03.2009

Name of

investor


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.


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.


375

NAKURU PUBLIC HEARING HELD ON 25TH MARCH 2009

Sampled comments

Name of

investor


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.


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


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.


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


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.


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


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


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


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


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