This archive report was first published on 4 August 2020.
Pyramid Schemes in Kenya: A Growing Concern ¶
Published on August 4, 2020, investigations by Kenyans.co.ke revealed that pyramid schemes have been swindling unsuspecting individuals in Kenya, promising quick financial success.
These schemes span various fields, including digital marketing, affiliate marketing, network marketing, sales, beauty and cosmetics, finance and investment, entertainment, and sports betting.
While cases vary in terms of execution and amounts lost, a common thread among these schemes is the use of strategies that deceive and manipulate victims.
Recognizing the signs of pyramid schemes is crucial to avoiding financial losses and protecting one's well-being.
Common Signs of Pyramid Schemes in Kenya ¶
- Recruitment-based earnings: Many schemes promise large payments on the condition that you recruit others to join.
- Unnecessary fees: Schemes often require you to pay fees for add-ons that make no business sense.
- Grass-to-grace stories: Scammers use stories of success to encourage new recruits to sign up and pay registration fees.
- Selling low-value products: Some schemes involve selling products that are not in demand, such as promotional materials.
- Forced purchases: Members are often required to buy unnecessary items to maintain membership.
