Regulators should improve their surveillance role to protect Kenyans from unscrupulous individuals taking advantage of gaps and limited financial literacy to rob the masses.
The public should also be sensitised on safe and legal investment options available in the market.
Effective public awareness campaigns can reduce the risk of people making rushed decisions with dire financial consequences.
It is disheartening that Kenyans have lost a lot of money by investing in unregulated products that are hawked by unscrupulous individuals.
Kenyans have lost Sh1 billion buying into unregulated investment products marketed by entities promising high returns.
Victims have lost savings and retirement benefits to fraudulent and unregulated schemes which only emerge after millions of shillings have been lost.
The Capital Markets Authority (CMA) on Thursday told Parliament that about 500 investors have complained of loss of funds through online forex frauds, illegally pooled funds, cryptocurrency, real estate and ponzi schemes, ordered refunds and instituted criminal charges.
In light of this, regulators including the Central Bank of Kenya (CBK) and the CMA should improve their surveillance role to protect Kenyans from unscrupulous individuals who are taking advantage of gaps and limited financial literacy to rob the masses.
The capital markets regulator takes action against entities that sell products that require regulation, but lack a licence or approval from the watchdog. There is a rising need to strengthen their capacity in intelligence gathering to stop further loss of money.
Also, individuals engaged in the illegal activities should face the full force of the law for their actions.
Unfortunately, failure to prosecute past ponzi scheme masterminds has given some individuals confidence to continue robbing Kenyans in broad day light under the noses of a long list of regulators .
The public should also be sensitised on safe and legal investment options available in the market.
Victims of ponzi schemes fall prey because of lack of information on investment ideas in the capital markets.
Many Kenyans invest based on the promise of better returns.
Effective public awareness campaigns can reduce the risk of people making rushed decisions with dire financial consequences.
It is incumbent upon the agencies to regularly educate the masses since it is the duty of the government to provide security.
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