The High Court has ordered seven suspects in a Kes.449.6 million digital loan heist to surrender their luxury vehicles and motorbikes, deemed proceeds of crime, to the government.
Justice Patrick Otieno ruled that these assets be transferred to the Asset Recovery Agency (ARA), following an investigation into a sophisticated scheme targeting NCBA Bank’s Fuliza loan service.
The ARA investigation revealed that the suspects—identified as Gideon Kipkirui, Kipkemoi Isac, Edwin Kipkorir, Nelson Kamau, Gideon Kibet, Jonnes Kipkurui, and Gedion Kipkoech—allegedly used more than 19,000 fake identities to register SIM cards, which they used to secure multiple loans fraudulently.
The suspects would borrow funds, channel them through several mobile wallets and bank accounts, then withdraw them for personal purchases, including high-end vehicles and motorcycles.
One of the main suspects, Kipkirui, received a steady flow of deposits in his bank account ranging from Kes.22,000 to Kes.100,000, accumulating millions over time. These deposits originated from mobile numbers registered under the names of different individuals, indicating an extensive use of aliases to cover their tracks.
Kipkirui’s accounts showed he had also purchased a Subaru Forester using Kes.1.4 million from one account while making frequent withdrawals from M-Pesa agents. Investigators found that his M-Pesa account alone had received a staggering Kes.35 million throughout 2022.
Another suspect, Kipkemoi, opened his bank account in May 2021, receiving regular deposits labeled as pay bill credits. Records indicate that his account received 244 transactions, ranging from Kes.1,000 to Kes.87,866, which he reportedly used to buy a Toyota Mark X.
During the investigation, ARA discovered that Kipkemoi’s two bank accounts—one at KCB and the other at Family Bank—received a cumulative Kes.1.7 million from mobile money deposits, in addition to Kes.2.6 million in inter-account transfers and a Kes.70,000 agency cash deposit.
After amassing these funds, he made multiple withdrawals and transferred Kes.2.6 million to another account, using Kes.3.2 million to acquire the Toyota Mark X. His KCB account saw a total of Kes.12.3 million in deposits, nearly all of which he later withdrew.
Kamau, the alleged ringleader, was linked to the largest haul, receiving more than Kes.323.8 million through mobile phone transfers. These funds, sourced from 61 unique mobile subscribers, were routed through his Family Bank account, which was then used to make high-value purchases, including another Subaru Forester. His mobile number received Kes.16.05 million in deposits, further evidence of extensive, illicit financial activity.
The investigation uncovered that, despite their significant cash flow, none of the suspects filed tax returns from 2018 through 2021, a red flag that prompted further scrutiny of their financial histories.
The suspects tried to justify their wealth by claiming income from various businesses, such as farming, electronics, and even a petrol station. Kipkirui, for instance, asserted that his funds came from a food supply business and agricultural ventures, but he failed to provide any receipts or tax documents to support his claims. His explanation, along with those of the other suspects, was inconsistent, and they lacked documentation to substantiate their supposed sources of income.
ARA’s review of the suspects’ financial activities revealed an unusual pattern, including links to 97,240 mobile wallets—an indicator of an organized and large-scale fraud network. With this evidence, the court ruled that the luxury assets acquired through these funds were indeed illicit and ordered their forfeiture to the government.
Nakuru Equipment Supplies Ltd and other companies tied to the suspects sought to dissociate themselves from the accused; however, ARA argued that the vehicles in question were still registered under the suspects’ names, strengthening their case for asset seizure.
This case illustrates the sophisticated strategies employed by digital fraud rings and underscores the importance of asset tracing in fraud investigations. By following the financial footprints and analyzing transaction patterns, ARA and other authorities continue to crack down on complex financial crimes facilitated by digital platforms, ensuring that ill-gotten assets are returned to the state.
