(Nairobi) – The High Court of Kenya has ruled that several luxury vehicles and motorcycles, linked to a massive fraud scheme involving KSh 449.6 million, be forfeited to the state. Justice Patrick Otieno issued the directive after the suspects failed to provide satisfactory explanations regarding the origin of their assets, declaring that they were proceeds of crime.
The ruling transfers ownership of the vehicles to the Asset Recovery Agency (ARA), with specific instructions for the National Transport and Safety Authority (NTSA) to facilitate the transfer of registration. The case emerged after NCBA Bank flagged suspicious activity, noting hundreds of delinquent loans taken out through multiple SIM cards, which were later deactivated.
The fraud operation affected about 123,000 phone lines, prompting arrests in Nakuru and Kitale. The individuals facing charges in the Anti-Corruption High Court include Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech. Several companies, including Nakuru Equipment Supplies Ltd, Rensas Investments Ltd, My Credit Ltd, and NCBA, have been identified as interested parties in the case.
According to ARA investigator Peter Mutisya, the fraudsters established around 19,000 fake identities using authentic identification documents stolen from unsuspecting Kenyan citizens. The suspects then took out loans through digital platforms, transferred the funds to personal bank accounts using secondary mobile numbers, and converted the money into mobile wallet balances.
The investigation uncovered an elaborate scheme with multiple accounts involved in transactions across various platforms. For instance, Kipkirui’s mobile number alone received funds from seven different subscriber accounts within just ten days in January 2022. One of the suspects, Nelson Kamau, processed KSh 323.8 million through various accounts, using the funds to purchase a Subaru Forester. Kamau’s mobile number alone processed KSh 16.05 million.
Upon further scrutiny, it was revealed that the suspects had not filed tax returns for extended periods. When questioned about the source of their wealth, they failed to provide credible explanations. They claimed that their wealth stemmed from business activities, agriculture, and personal loans from friends, but none of these claims were backed by proper documentation.