A view of traffic near the Central Bank on Kenya offices in Nairobi. PHOTO'the-star.co.ke
Banking and Saccos regulators have warned that the public is likely to fall prey to re-emerging pyramid schemes as we head into the expensive political campaigns.
The Central Bank of Kenya (CBK) and the Sacco Societies Regulatory Authority (Sasra) on Friday warned that unlicensed deposit-taking companies and schemes were springing up.
The schemes which always come ahead of general elections usually lure unsuspecting investors with the promise of high returns on their investments within a short period.
“Such entities usually entice members of the public to place money with them and promise quick and abnormally high returns on their money or acquisition of non-existent properties,” said the two regulators in a joint statement.
“CBK and Sasra advise members of the public not to place their money with unlicensed entities.”
The warning came just a week after media reports showed that some 7,000 unsuspecting investors could have been fleeced of over Sh3 billion in the alleged fraudulent housing scheme by Ekeza Sacco.