Hundreds of Kenyans Lose Over Ksh.300 Million in Investment Scam

In what has become an all-too-common trend in Kenya, hundreds of unsuspecting investors in Nairobi, Machakos, and Kajiado counties have fallen victim to a large-scale investment scam, losing over Ksh.300 million. The scheme, orchestrated by businesswoman Pascaline Peter, promised high returns through a money-lending operation but has instead left a trail of financial devastation.

Pascaline, who is now on the run and being sought by police, lured her victims with the prospect of earning a 30% interest on their investments, which were purportedly loaned out to unknown borrowers. Initially, the scheme appeared legitimate, with interests being paid on time. However, as the scam progressed, investors began experiencing delays and receiving empty promises instead of their expected returns.

One victim, who chose to remain anonymous, recounted her experience: "I started with 100k, then added another 100,000, and another 100,000. I was receiving interest for a while, but then I decided to reinvest it. Now, after eight months, I've lost over Ksh.5 million to someone I thought was a friend."

Another victim, who lost nearly a million shillings, shared his story of initial skepticism turned into regret. "I got back some money, about Ksh.94,000, and felt confident enough to invest more. But last week, a friend called me, warning me about rising pressure, and that's when I realized something was wrong."

A group of eight investors from Machakos County, who traveled from Ruaka and Kitengela in search of Pascaline, were met with disappointment when they learned she had not been seen in the area for a week. Lynne Magai, one of the group members, expressed her frustration: "We were in regular contact until this week. I never imagined it was a scam, especially after being referred by friends."

Magai, who invested over Ksh.500,000 just this month, explained the allure of the scheme: "The policy was simple—give her money, and she pays you with interest. If you needed money as an investor, you could borrow without interest since she already had your funds. It seemed like a win-win."

Ruai Police Commander Patricia Yegon confirmed that investigations are underway, with several reports already filed by the victims. "We have received reports from some members of the public who were conned online. The DCIO is currently investigating the matter," Yegon stated.

Efforts to reach Pascaline have been unsuccessful, as her phones remain switched off. Meanwhile, more victims, both in Kenya and abroad, continue to come forward, demanding the return of their hard-earned money.