In a landmark ruling, the High Court has ordered seven suspects involved in a KES 449.6 million digital loan fraud to surrender luxury vehicles and motorbikes, deemed to be proceeds of crime, to the government. The assets are to be transferred to the Asset Recovery Agency (ARA) as part of ongoing efforts to tackle sophisticated financial crimes.
Justice Patrick Otieno’s decision follows an extensive investigation by the ARA into a fraudulent scheme targeting NCBA Bank’s Fuliza loan service. The suspects, identified as Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech, allegedly used over 19,000 fake identities to register SIM cards, securing loans through multiple mobile wallets and bank accounts. These funds were then funneled for personal expenses, including the acquisition of high-end vehicles and motorcycles.
Among the key suspects, Gideon Kipkirui was linked to large sums of illicit deposits, amassing millions through mobile accounts. His bank accounts showed significant inflows, with one transaction involving the purchase of a Subaru Forester using KES 1.4 million from his account. Similarly, Kipkemoi Isac used illicit funds to purchase a Toyota Mark X after depositing over KES 1.7 million into his bank accounts.
The ringleader, Nelson Kamau, is reported to have received over KES 323.8 million in mobile transfers, with funds routed through his Family Bank account for high-value purchases, including another Subaru Forester. ARA’s investigation revealed that despite these substantial funds, none of the suspects had filed tax returns from 2018 to 2021, raising further suspicions of their financial activities.
Despite claims of legitimate business earnings, including from farming and electronics, the suspects failed to provide adequate documentation to support their explanations. This discrepancy, along with evidence of financial irregularities, led to the forfeiture order.
