Two suspects have been arraigned at the Milimani Law Courts over allegations of running an unlicensed investment scheme that had been flagged by the Capital Markets Authority (CMA) for allegedly soliciting funds from Kenyans through fraudulent means.
The suspects appeared before the court on Wednesday, September 23, a day after they were arrested, according to the CMA.
Their arrest and subsequent arraignment followed a joint operation involving the CMA, the Directorate of Criminal Investigations (DCI) and the Office of the Director of Public Prosecutions (ODPP).
“The Authority, in conjunction with the DCI and the ODPP, today presented two suspects before the Milimani Law Courts for plea taking. The two are charged with operating fraudulent investment schemes,” CMA stated.
The two women are accused of operating a collective investment scheme without a valid CMA licence between January 1 and September 17, 2026.
Prosecutors further accused them of misleading members of the public into subscribing to and trading in securities by making false statements and promises.
The charge sheet did not specify the amount of money allegedly lost by investors.
The suspects denied the charges and were each released on a Ksh200,000 bond as they await further proceedings.
Their court appearance comes days after the CMA issued a public warning against 15 investment platforms that it said were operating without the required licences or regulatory approvals.
The investment operation allegedly linked to the suspects was among the entities identified by the regulator as being under investigation for suspected unlawful activities.
The CMA's warning covered platforms dealing in different financial products and services, including cryptocurrency, foreign exchange and money market funds.
The regulator has since urged Kenyans to confirm the licensing status of investment providers before depositing or investing their money.
CMA also provides an online portal through which members of the public can verify approved market intermediaries.
The arraignment has brought renewed attention to the regulator's warning as the two suspects face court proceedings over allegations relating to the operation of the flagged investment scheme.
