The High Court has ordered Sh10 million belonging to a company suspected to be involved in a pyramid scheme, forfeited to the government after the firm’s director failed to explain the source of the funds.
Justice Esther Maina ruled that the money linked to Kivaa Ventures Ltd be transferred to the Assets Recovery Agency (ARA).
The judge said the firm and its director Stephen Muchoki Kimenchu did not provide evidence to prove that he ran a business as alleged.
“One would have expected him to provide this court with documents evidencing registration of the business and also proof of the person he traded with so as to earn the sums deposited in the account. There is no proof at all,” the judge said.
The agency informed the court that the firm was involved in fraud, racketeering and obtaining money from people by false pretences.
After obtaining warrants to investigate the bank account, the ARA discovered that the firm had deposited Sh30 million in a span of six days from various individuals in a manner believed the funds were obtained by false pretences.
Further, within the said period there were massive cash withdrawals and transfers, ARA said.
The agency tabled in court bank statements showing the deposits and withdrawals.
