- Seven men are accused of pulling off a massive Sh449 million Fuliza loan scam, using 123,000 SIM cards to siphon funds and then disconnecting the lines
- Investigators discovered they bought luxury cars and motorbikes with the stolen money, yet none had filed tax returns in the last four years
- In one case, a suspect’s bank account handled 97,240 mobile money transfers from over 10,000 different numbers, siphoning over KSh 380 million
Seven men appeared before the High Court for allegedly orchestrating a heist that siphoned Ksh 449.6 million from a popular mobile-based loan platform, Fuliza, in a case that has left the public stunned.
These suspects reportedly manipulated the digital lending system using thousands of unsuspecting Kenyans’ phone numbers, leading to massive withdrawals and flashy lifestyles financed by what investigators call “proceeds of crime.”
The High Court, presided over by Justice Patrick Otieno, ordered that high-end vehicles and motorcycles purchased by the suspects be forfeited to the government.
In a decisive move, the judge mandated that the seized assets be transferred to the Asset Recovery Agency (ARA), marking a strong stance on asset repossession in criminal cases.
This suspected fraud operation unraveled after NCBA Bank, the co-owner of Fuliza, flagged irregular patterns involving over 123,000 SIM cards, each used to take out loans before being deactivated.
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Authorities believe the suspects forged 19,000 fake identities, using real Kenyan ID numbers to facilitate the fraud.
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The suspects, identified as Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech, were nabbed in Nakuru and Kitale and charged with various offenses, including fraud and money laundering.
They allegedly registered numerous phone numbers in different names, then transferred borrowed money to secondary accounts, which would eventually funnel funds into their personal bank accounts and M-Pesa wallets.
One of the suspects, Kipkirui, reportedly had a bank account with only Ksh 70 before deposits of up to Ksh 100,000 started pouring in from Fuliza loans. Investigators traced over 90 transactions to his account in a single day, with cash withdrawn at multiple M-Pesa agents.
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Kipkirui’s spending was lavish: records show he splurged Ksh 1.4 million on a Subaru Forester, made numerous hefty withdrawals, and ran transactions totaling Ksh 35 million in just one year.
Kipkemoi, another suspect, displayed similar financial activity, including buying a Toyota Mark X with Ksh 3.2 million cash after rapid deposits into his KCB account.
Kamau, meanwhile, was believed to have the largest share of the illicit funds, receiving a staggering Ksh 323.8 million wired through his mobile phone.
Despite their audacious spending and multiple luxury vehicle purchases, the suspects had little to show in terms of tax returns, leaving authorities with more questions than answers.
Each defendant attempted to justify the source of their wealth, often citing agricultural ventures, family support, and small businesses. However, when pressed, they failed to produce any valid receipts or bank records to corroborate their claims.
