By Susan Anyangu
Co-operative Development Minister Joseph Nyaga has unveiled a taskforce that will investigate collapsed pyramid schemes that swindled Kenyans off billions of shillings.
Mr Nyaga launched the nine-member taskforce that will be chaired by Mr Francis Nyenze, on Monday.
Speaking during the launch, Nyaga said the taskforce would have a three-month mandate to establish who were behind the schemes.
"The taskforce will go around the country, especially the crisis regions which include Nairobi, Mount Kenya and Western province. They will seek to establish how we can resolve the problem and prosecute those involved," Nyaga said.
In 2006 and 2007, there was an influx of organisations luring innocent Kenyans to invest cash with a promise of quick returns. The market regulator, Central Bank of Kenya issued a warning that the schemes were operating against banking regulations, as they were not allowed to collect cash deposits.
How investors lost
When the Government started a crackdown on suspected pyramid schemes, the owners panicked and went underground with billions of shillings invested by innocent Kenyans. The taskforce is expected to establish the number and nature of pyramid and other related schemes and the identities of their directors.
"They will investigate the amount and whereabouts of funds invested into the schemes. They will also formulate and recommend strategies to apprehend operators with a view of prosecution," said Nyaga.
At the end of three months, the taskforce will present a report, which will include recommendations and mechanisms for recovery of funds invested.
