A new Bill proposes tough penalties to curb bogus get-rich-quick pyramid schemes.
This follows a report released after an inquiry in 2010 unearthed how thousands of Kenyans lost Sh8.2 billion in pyramid scheme thefts.
Ikolomani MP Boni Khalwale is sponsoring the Prohibition of Pyramid Schemes Bill 2012. The draft law also empowers the court to order a convict to pay compensation to the victims. Ikolomani MP Boni Khalwale. He has sponsored the Prohibition of Pyramid Schemes Bill 2012. Photo: File/Standard
Ikolomani MP Boni Khalwale. He has sponsored the Prohibition of Pyramid Schemes Bill 2012. Photo: File/Standard
It follows an investigative report tabled in Parliament that detailed nearly 148,784 investors lost Sh8.2 billion in two years to the profiteers, some of whom were claimed to be prominent individuals in society.
The 10 most egregious swindlers took away Sh7.3 billion, according to the Task Force report presented to the House by Co-operatives Minister Joseph Nyagah.
Last week when he appeared before the parliamentary committee on Agriculture, Nyagah raised the red flag over the re-emergence of the phony schemes.
The minister warned Kenyans against involving themselves in such schemes especially given politicians are seeking to raise campaign funds.
Committee chairman John Mututho claimed he had received a text message from unknown persons requesting him to mobilise people to join the scheme.