NAIROBI, KENYA: Central Bank of Kenya has raised alarm over increasing pyramid schemes in the country.
Regulator says such entities entice members of the public to place money with them and promise quick and abnormally high returns on money or acquisition of non-existence properties.
“Members of the public should exercise caution and ensure they place their funds with credible and duly licensed deposit taking institutions,” reads a joint statement by Central Bank and Sacco societies regulatory authority (SASRA).
CBK and SASRA are sole licensing authorities for deposit taking institutions in Kenya. In particular, CBK licenses commercial banks under the Banking Act, and microfinance banks under the Microfinance act.
SASRA licenses deposit taking Sacco under societies act.
On Tuesday Standard online reported that 7,000 Kenyans could have been duped in yet another housing scam involving chairman of Ekeza Sacco and Gakuyo Real estate firm.