This archive report was first published on 9 July 2021.
Friday, July 9, 2021, marked a day of reckoning for Kenyans who had invested in unregulated investment products, with the Capital Markets Authority (CMA) revealing that they had lost a staggering Sh1 billion.
The CMA's CEO, Wyckliffe Shamiah, told the National Assembly Finance Committee that approximately 500 investors had complained of loss of funds through online forex frauds, illegally pooled funds, cryptocurrency, real estate, and Ponzi schemes.
Shamiah explained that the entities in question lure unsuspecting investors across the country with promises of huge returns of up to 20 percent, but fail to deliver.
The CMA has taken action against entities that sell products that require regulation but lack a licence or approval from the watchdog.
Some of the entities under probe include Iforex time, Trends Forex Traders, AutoTrade Markets, Everjoy Forex Institute, Interweb Global Fortune, and Thika Forex Trading Lounge, all of which operate online forex trading services without a licence.
Shamiah also highlighted the case of Mr. Charles Kibue Mwaura, who operates from Nakuru and collects funds of between Sh5,000 and Sh20,000 from clients, promising them a daily return of 10 percent.
The CMA has established a whistle blower portal on its website that enables members of the public to anonymously report any suspicious activity within the market.
