Woman in court over Sh108,000 chama fraud

The court granted the accused Sh30,000 cash bail pending trial  (Photo: AI/Gemini)                                                                

A Nairobi businesswoman has gone to court after allegedly losing Sh108,000 in a neighbourhood merry-go-round scheme run by a woman she trusted.

Gladys Njeri Mwangi says she contributed weekly for five months after her neighbour persuaded her to join the chama, only to miss out when members received their payouts.

According to the charge sheet, Margaret Muthoni Wangechi allegedly obtained Sh108,000 from Mwangi between April 3 and August 12, 2026, in Lunga Lunga, Makadara Sub-County, Nairobi.

Wangechi is accused of falsely presenting herself as the group’s treasurer and collecting contributions with intent to defraud. Mwangi, says she was required to pay Sh6,000 every Wednesday in cash.

On August 12, when other members reportedly received their shares, Mwangi was left out. When she demanded an explanation,

Wangechi allegedly asked for two weeks to refund the money, claiming she had already spent it. The promised refund never came, prompting Mwangi to report the matter at Lunga Lunga Police Station.

Wangechi denied the allegations. Her lawyer, Elvin Onsongo, sought leniency, saying she was a widow. The court granted her Sh30,000 cash bail pending trial.