Hearing of Sh500m Fuliza fraud case set for July 17

Eight suspects accused of defrauding over Sh500 million from Safaricom's Fuliza overdraft facility appeared at the Milimani Law Courts on July 2, 2025, for a scheduled hearing of their case.

They appeared before Senior Principal Magistrate Robinson Ondieki.

However, the case did not proceed after the suspects informed the court that their lawyer was absent.

The prosecution also did not have witnesses in court and made an application to adjourn the matter.

Magistrate Ondieki directed the accused persons to ensure their legal counsel is present during the next court session.

He also ordered the prosecution to ensure its witnesses are available.

The court adjourned the case to July 17, 2025, for hearing and further directions.

 Isaack Kipkemoi, Gideon Rono, Maxwell Ributhu, Gideon Kirui, Moses Rono, Collins Kipyegon, Edwin Cheruiyot and the alleged mastermind, Peter Gitahi, are believed to be members of a well-coordinated fraud syndicate that operated between 2022 and 2023.

According to detectives from the Directorate of Criminal Investigations (DCI), the suspects were arrested in different locations across Nakuru and Trans-Nzoia counties.

Seven were apprehended at an apartment in Kiamunyi, Nakuru, while Gitahi was arrested in Kitale.

DCI investigations revealed that the suspects used fraudulently generated national ID numbers to register SIM cards, which were then used to borrow funds from Fuliza. They would then default on repayment.

Police recovered thousands of Safaricom and Airtel SIM cards from the suspects’ possession.

The DCI said a report was filed at the Banking Fraud Investigations Unit (BFIU) in August 2022 after Fuliza managers noted an abnormal surge in loan uptake with no repayments.

Detectives discovered that in January 2022 alone, over 123,000 mobile numbers registered under Fuliza took loans and later became unreachable after the SIMs were deactivated.

The investigations linked Gitahi to the fraudulent registration of SIM cards using fake credentials, which he allegedly sold to the other suspects for use in the fraud.

Detectives believe Gitahi may have accessed the National Registration Bureau (NRB) database to create fake identities.

Some of the SIM cards were registered as M-Pesa agent lines. Borrowed funds would be deposited into personal accounts disguised as float transactions.

To build trust and creditworthiness, the suspects initially borrowed and repaid small amounts before maxing out limits and abandoning the lines.

Police noted that one identity card was used to register up to five SIM cards.

Proceeds from the scheme were allegedly used to acquire two Subaru vehicles, one Toyota Mark X, a Toyota Probox, and two motorcycles, all of which were  seized.

Detectives also recovered 14 M-Pesa phones used in M-Pesa registration, six laptops, over 40 mobile phones, seven routers, more than 1,000 Safaricom registration forms, over 200 ATM cards from various banks, and car sale agreements.