The Bill states a person commits an offence if he or she knowingly promotes a pyramid scheme.
It is also an offence to participate in a pyramid scheme or induce another person to participate in it knowing that any benefit gained is entirely or substantially derived from the introduction to the scheme of new participants.
"A person who commits an offence under subsection (1) or (2) is liable on conviction to a fine not exceeding ten million shillings or to imprisonment for a term not exceeding ten years, or both," the Bill states.
Directors and partners of illegal firms fleecing Kenyans will also have no excuse that they were in the dark about the activities.
The Bill provides for the liability of a relevant person of a body corporate or unincorporated body the firm or a person as a member of the unincorporated body commits an offence.
The draft law proposes perpetrators of the schemes are further made to pay compensation, which is recoverable as a civil debt.
"If a person is convicted of an offence under this Act, the court may, in addition to passing any sentence that may otherwise be passed by law, order the person to pay an amount of compensation that it thinks reasonable to any person who has suffered financial loss resulting from that offence," the Bill says.
The proposed law will not interfere with pending claims filed by victims against owners of pyramid schemes that have since collapsed.
"This Act does not limit, restrict or otherwise affect any rights or claims a person would have had if this Act had not been enacted," it notes.
Attorney General Githu Muigai has since intervened to help victims trace their lost billions. The AG directed individuals, groups or organisations that have filed claims in court to forward written submissions and all supporting documents to his office.
Some Sh5 billion is reportedly held by the Central Bank of Kenya and other commercial banks in âfrozenâ accounts, according to the Taskforce report.
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