10 arrested in Sh449 million scam targeting Fuliza loan platform

At least 10 individuals have been apprehended in Nakuru and Kitale in connection with a Sh449 million fraud scheme targeting the NCBA Bank's Fuliza mobile lending platform.

The suspects allegedly used an extensive network of SIM cards to secure loans that were never repaid, impacting tens of thousands of mobile accounts.

The Asset Recovery Agency (ARA) told the court on Tuesday, that it had identified seven key suspects; Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech who allegedly led the scheme by registering over 123,000 lines to draw loans before abandoning them.

The suspects are facing charges at the Anti-Corruption High Court, with the court case also involving entities like Nakuru Equipment Supplies Ltd, Rensas Investments Ltd, My Credit Ltd, and NCBA as interested parties.

ARA officer Peter Mutisya explained that the agency began investigations after receiving a tip last year about an intricate fraud scheme exploiting NCBA's digital loan service.

According to Mutisya, the group employed over 19,000 fake identities to acquire loans from Fuliza, using identification details of unsuspecting Kenyans.

Funds were moved across multiple accounts before being withdrawn in bulk or redeposited in bank accounts, in a tactic designed to mask their origin.

The court heard that Kipkirui, one of the key suspects, received substantial sums from loans secured through multiple SIM cards.

Large transactions

ARA investigations revealed that his accounts were active in large transactions, at times receiving deposits as high as Sh100,000 from various mobile numbers.

Kipkirui would then withdraw the funds from M-Pesa agents quickly.

For instance, on March 9, 2023, he made 23 separate withdrawals in a single day, with amounts between Sh130,075 and Sh172,085 each.

Data presented in court indicated that one bank account associated with Kipkirui saw Sh3.1 million funnelled from 97,240 wallets over 2021-2022.

From this, Sh11.7 million was transferred to over 35,000 M-Pesa agent outlets.

Additional accounts linked to Kipkirui and others in the group received millions of shillings, which were allegedly used to purchase luxury items, including a Subaru Forester.

Another key player, Kamau, reportedly received the largest amount, with Sh323.8 million in mobile deposits attributed to him.

Investigators confirmed that he had purchased assets, including a Subaru Forester, through proceeds from these transactions.

Further court documents showed that suspects attempted to justify their wealth through various business claims.

Kipkirui claimed his money was from a family business and farming, while Kipkemoi stated he earned his income from an electronics shop and potato farming.

However, the ARA noted that these explanations were unsubstantiated, with no proof provided for the alleged earnings.

The ARA also contested arguments by Nakuru Equipment Supplies Ltd, which requested to be removed from the case, citing that assets, including motorcycles allegedly linked to the fraud, remained under its name.

The suspects face serious charges as authorities pursue asset recovery and potential forfeiture of their properties.