There is nothing like free lunch, don't confuse gambling for investment

The allure of quick wealth through flashy apps and online schemes is increasingly becoming tempting particularly to the urban youth. The promise of doubling money overnight, with minimal effort, is hard to resist. Yet, history and experience teach us that genuine wealth is built over time.

Platforms like the Aviator game have captivated users with the promise of quick returns. This virtual betting experience allows players to wager on a simulated aircraft’s flight, with rounds lasting only seconds and promising instant payouts.

Tragically, we have heard of incidents like suicide, after the loss of substantial funds underscoring the severe consequences of such digital gambling platforms.

Similarly, thousands of more Kenyans have found themselves trapped in the rubble of collapsed online investment platforms. These platforms promise daily returns, easy withdrawals, and a path to financial freedom. In reality they are sophisticated Ponzi schemes or digital gambling systems masquerading as economic tools.

The line between investing and gambling has become dangerously blurred. Real investments are built on sound business models, regulatory oversight, and risk disclosure. What we are seeing today is something else entirely.

With these schemes, early users are shown inflated returns to build confidence and trust. Then comes the viral multi-level marketing recruitment-driven growth. Artificial intelligence (AI) is also being exploited to open up avenues for scams. While AI has revolutionised the financial sector positively, it is being exploited to open up avenues for sophisticated scams. Fraudsters often use these tools to suggest legitimacy to fraudulent schemes, but which are rarely verifiable. Once withdrawals exceed deposits, the platform freezes or disappears, leaving users stranded.

I have often wondered if these platforms truly offer a legitimate opportunity, why are new users told to keep it to themselves? It’s a glaring contradiction for a model that depends on constant recruitment to also demand silence. Even as some users may still be cashing out from newer platforms, they need to recognise that it is just a bait to attract more unsuspecting users.

As you consider investment options and before committing your hard-earned money, always take time to understand the business model behind any platform. A legitimate investment should have a clear and transparent way of generating income, be licensed or regulated, and offer returns tied to real economic activity.

You should also be able to verify who is behind the platform. Traditional financial institutions operate on clear models. Saccos, for instance, earn by lending to members and charging interest. Banks invest in treasury bonds and other instruments, generating income through interest and dividends.

In contrast, many modern digital platforms lack clarity. They often rely on user deposits to pay returns, a model unsustainable in the long run. Without a clear source of income, such schemes are bound to collapse, leaving investors in distress. The same way you wouldn’t hand over Sh10,000 to a stranger on the street promising to triple it in a week, in the same way you should not trust an anonymous app making the same claim.

It has become increasingly clear that chasing flashy returns often distracts us from smarter, simpler financial strategies. There are safer, tested alternatives such as low-risk bonds accessible through your phone, backed by the government, and even unit trusts and money market funds that offer liquidity, transparency, and consistent reporting.

With 4.7 million Kenyans facing substance abuse issues and a growing number turning to online gambling, the government has stepped in rolling out a multi-sectoral response including public awareness campaigns, rehabilitation coverage, and mental health support. It’s a commendable step.

However, government intervention alone is not enough. As citizens, we must also take responsibility for protecting ourselves and others. This begins with vigilance and informed decision-making.