Kenyans duped by pyramid scheme fail to get Sh8 billion from state

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Kenyans duped by pyramid scheme fail to get Sh8 billion from state

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Kenyans duped by pyramid scheme fail to get Sh8 billion from state

The court said it had noted that the state had gone an extra mile to warn the public in several press releases on the illegality of the pyramid schemes.

• “CBK advised the general public to conduct due diligence so as to verify the legitimacy and the sources of the handsome returns and warned them to beware of investments opportunities that promise high returns dividends,” the court said.

A total of 39,000 Kenyans who were duped out of more than Sh8 billion by different pyramid Schemes 15 years ago have lost a bid for compensation from the state.

They wanted the court to order the government to pay them the billions they lost for allowing the said pyramid scheme companies to operate in Kenya.

However, Justice James Makau on Thursday dismissed their petition ruling that it was an abuse of the court process and just an attempt to pressure the government to burden the taxpayers and pay them money lost to the pyramid schemes.

The judge further noted that the petitioners did not sue the said pyramid schemes that allegedly defrauded them.

“The petitioners herein entered into a contract between themselves and various institutions which they did not sue or join in this petition” the court ruled.

Judge Makau ruled that the state entities that were sued in the case were not party to the various contracts.

They had sued the Attorney General, PS Ministry of Cooperatives Development and Marketing, the Governor Central Bank, PS Ministry of Finance and PS Ministry of Interior.

The court ruled that the petition was filed in the wrong court as it should have been taken before the civil or commercial division not the constitutional court.

He also dismissed the allegations by the petitioners that the state was liable for breach of contract between them and the pyramid schemes.

“The court notes that the agreements and contracts relied upon by the petitioners reveal a common thread of voluntary creation of rights and obligations including payments made” the court ruled.

The judge further ruled that from the case it was clear they assumed the risk of their investment with the entities they entered into contract with.

The court said it had noted that the state had gone an extra mile to warn the public in several press releases on the illegality of the pyramid schemes.

“CBK advised the general public to conduct due diligence so as to verify the legitimacy and the sources of the handsome returns and warned them to beware of investments opportunities that promise high returns dividends,” the court said.

 

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Kenyans duped by pyramid scheme fail to get Sh8 billion from state Reviewed by on February 25, 2021 .

Kenyans duped by pyramid scheme fail to get Sh8 billion from state The court said it had noted that the state had gone an extra mile to warn the public in several press releases on the illegality of the pyramid schemes. • “CBK advised the general public to conduct due diligence so as to verify

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