Directorate of Criminals Investigation is now warning Kenyans of a pyramid scheme which has over time pooled thousands of unsuspecting investors who are now crying foul.
In a statement on Thursday, detectives said the suspicious company running the pyramid scheme was registered in 2021 and has seven directors.
Detectives said one of the directors is also the sole director and signatory of a sister company which is also under investigation for allegedly defrauding Kenyans through a pyramid scheme.
"The companies are located in the city of Nairobi in two different buildings," detectives said.
Detectives said the DCI's Serious Crime Unit has received numerous complaints from victims who ventured into the scheme.
"The victims are laying claims that nothing is left of their thousands and millions of investment after the directors fell out and the key suspect holed up," detectives said.
Over 5,000 investors were hoodwinked to enter into a 6 months contract with the suspicious firm each investing a minimum of Sh50,000, detectives said.
The investors were told their money would accrue a redeemable monthly interest of 15 per cent, or a similar percentage of compounded interest redeemable at the end of the 6 months.
The company went further to offer car hire services by leasing vehicles from unsuspecting members of the public, which it then hired out to individuals and agencies.
Car owners allegedly received 30 per cent of the proceeds from the company. Other ventures included off-plan properties.
"Investors are reporting to have lost millions of money from the investment and payments made for off-plan houses, while some of those who leased out their vehicles have no track of them," detectives said.
DCI said the two firms are under active investigation and called on Kenyans to exercise caution and due diligence before engaging in any ventures.
