Capital Markets Authority (CMA) has cautioned the public against participating in any capital raising and public offer of shares by a women-targeted business organisation.
It said preliminary investigations show that Women Investing in Entrepreneurship (WIIE) Limited has been raising funds through a public share offer targeting women and also branding itself as ‘A women’s income and wealth incubator’.
CMA chief executive Paul Muthaura said the authority has noted discrepancies in the information provided in the firm’s website and information given to the authority.
“WIE Limited business model furthermore seems to have been endorsed by various women celebrities in the country in a bid to lure more women investors,” Muthaura said.
The CMA in collaboration with other law enforcement agencies has frozen the company’s bank account pending further inquiries.
It said that the nature and features of the capital raising by WIE is taking the form of a regulated activity, which has not been approved by the authority.
“Members of the public are therefore urged to exercise caution before participating in any public offer lacking regulatory sanction,” Muthaura added.
In an interview in local dailies in July, two of the initiators Tess Kariuki and Wanjiru Macharia said they planned to put up a mobile application to drive the business model to a wider mass market.
The platform was set to be launched this month after campaigns running from June and the members becoming shareholders.
“When it rolls out women will pay for the life mentorship that will last four months and the enterprise mentorship that will be continuous a minimum of Sh1,500 per month, the money will go into enterprises that will be presented on the platform for funding,” the two were quoted saying.
