Police in Hola, Tana River County have arrested 15 people suspected to have duped residents by using their phones to take Safaricom's M-Shwari and Fuliza loans.
The suspects, who included 10 women and five men allegedly operated their illegal activities in the heart of Hola town.
They have been allegedly luring innocent locals by promising them free laptops and phones after they surrender their M-Pesa pins, which they later use to take loans without consent.
Speaking after the arrest, Tana River Sub-county Police Commander Daniel Kitavi said the suspects will be charged in court after investigations.
He said police had received complaints from the public that the suspects were luring town dwellers into losing their money.
They were apprehended in lodges as they prepared to carry their illegal businesses after being tracked down.
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"We have arrested them and holding them at Hola police station cells waiting for the investigations to be completed. We will take them to court," Kitavi said.
Hola community policing chairman Soud Omar, who was among the victims appealed to the police to intervene.
Another victim Ibrahim Wayu claimed he had lost over Sh9,500 that has been loaned to them from their phone through KCB and Mshwari.vvv