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{
    "id": 315051,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/315051/?format=api",
    "text_counter": 207,
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    "speaker_name": "",
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    "speaker": null,
    "content": "Madam Temporary Deputy Speaker, the issue of pyramid schemes has a very sad history in this country. It had been taking place at a very low key basis until about the year 2006/2007 when there was a sudden proliferation in the number of pyramid schemes. Unfortunately, after operating for two years, they quickly collapsed; they sank with billions of the pyramid schemes investors’ money. The respective investors suffered huge financial losses, ranging from as little as a goat, a cow, a bull that was sold to those who actually invested millions of Kenya Shillings. When this happened, it was followed, unfortunately, by sad instances of suicide and mob justice. I remember my own classmate of four years at Musingu High School, Elphas Mweresa, who was a perpetrator of one of these schemes, was mob-lynched and thrown down from one of the high buildings here in Nairobi. I also remember several investors who committed suicide, because their retirement benefits had gone up in smoke. As a result of this, I came to this House and filed a petition on behalf of the people who had lost their millions. Parliament took it up and a recommendation was made that a taskforce be formed. This taskforce on pyramid schemes was, indeed, formed and very good job was done by it under the Ministry of Co- operatives Development and Marketing. The sad thing was that as soon as this particular taskforce was in place, it started experiencing serious frustrations. Allow me just to bring the House up to speed on some of the frustrations that they faced. They invited some of the perpetrators of this particular crime but they refused to attend. It is important that the country knows that amongst the people who refused to attend was Mr. Njeru Ndwiga, who was the Minister for Co- operative Development and Marketing during the pyramid schemes saga. He just refused to appear! Mr. Andrew Ligale, then an Assistant Minister, was also reported by the people who lost their money as one of the main promoters of the scheme called Deci. Bishop Sseberekare from Uganda also refused to appear as did Esther Bongo of Deci in Kisumu and many others, not to leave out Bishop Peter Ndegwa. This prescription also included poor support from the Provincial Administration, the Criminal Investigation Department (CID) and even the National Security Intelligence Service (NSIS). Frustrated as they were, the taskforce succeeded to file a report, where they flagged out 12 top pyramid schemes that fleeced Kenyans. These 12 schemes had fleeced Kenyans to the tune of Kshs7.4 billion. Top on the list was Deci with Kshs2.4 billion, Clip Investments with Kshs1.9 billion, Kenya Business Community SACCO with Kshs780 million, Sasanet Investment with Kshs739 million, Jitegemee Investment with Kshs495 million and Circuit Investment with Kshs348 million. What is important and for the House to realize why we must have this statute is that all these frustrations and possible getaway by these perpetrators was because of lack of this kind of law. For this kind of business not to be repeated, we must pass this law so that we do not lose out on what we can salvage at the moment. At the moment, we can salvage some of the savings which are still held in accounts in financial institutions and some of the banks. We can also salvage some of the assets that were acquired as a result of these investments."
}