A number of Kenyan investors risk losing all their savings and investments after it emerged that a Nairobi tycoon allegedly disappeared with more than Ksh15 billion.
According to a report by People Daily, Maalin Group of Companies CEO Abdalle Mohamed Ali reportedly went missing on Sunday, March 18, abandoning his car at the Jomo Kenyatta International Airport.
A section of complainants who spoke to the publication claimed that the pyramid scheme, which was engaged in an online forex trading business in Nairobi, had promised them huge returns which were never to be.
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Some of the victims who held a meeting to contribute money to aide the tracking of the tycoon claimed that an unnamed Cabinet Secretary aided his escape and they suspect the tycoon flew to either Somalia or Mauritius.
The complainants also linked other powerful government officials in the saga, including a deputy inspector general of police, immigration officials, two prominent law firms and a senior politician from Northern Kenya among others.
The alarm was first raised by Senior Counsel Ahmednasir Abdullahi who announced on Twitter on Sunday, March 15 that a suspected ponzi scheme had gone under with billions of people’s investments.
“A huge ponzi scheme went under last week in Nairobi. Losses are conservatively estimated at between American USD 65 million (Ksh6.5 billion) and USD 80 million (Ksh8 billion).
“According to my sources, the Somali frontman was a commission agent,” he stated.
Among those affected include Somali lawmakers, lawyers, senior government officers as well as traders.
One of the victims identified as Sheikh Abdulla Kulow explained that he had sold three houses in Nairobi’s South C to make his investment of Ksh200 million.
“This is a huge blow to me and my family because this is what I have been depending on after I sold my apartments to invest in the scheme.
“The government must ensure the investor is brought back to the country and return our money,” he narrated noting that the promise was so good he convinced his friend to pour in Ksh55 million.