At least 1,500 Kenyans are now staring at a possible loss of billions in another suspected farm investment scam in Nairobi.
Investors who channeled their money into the E-Firm have been left stranded not knowing what to do after the company closed down following a series of squabbles within the board members.
In a report by the Standard, E-Firm chairman Wallace Mwaura said the society had collapsed and the offices closed following a misunderstanding between the board and among investors.
“Operations of the society have been crippled so we are now closed,” said Mwaura.
Mwaura explained that the firm’s operations could not continue after the government barred it from venturing into agribusiness even after investing millions in the construction of greenhouse structures.
“We were told to stop agribusiness since we were only licensed to operate as a housing cooperative,” said Mwaura.
Asked on how much had been invested into the firm, Mwaura said he could not remember.
One of the investors, Patrick Kibe who invested his last KSh 100,000 into the firm is now staring at a possible loss of his savings despite having been promised KSh 400,000 in profits within a year.
“Mwaura told us that E-Firm had partnered with an Israeli company specialising in agribusiness. I believed he could pay us good returns,” Kibe said.
Kibe who is leading the group of investors who are trying to recover their money said one of the largest investors in the group would lose his KSh 5,000,000 should investigators fail to take action against Mwaura and his team.
Another investor, Timothy Okworo, claimed he invested KSh 450,000 under the impression that E-Firm would get him a parcel of land in Thika.
“I was promised a plot in Malaa, Machakos. Then I was told that I was being considered for land in yet another place,” he said.
Notably, this is the second agribusiness scam after the Goldenscape Greenhouse investment that came crumbling with investors billions.
Administrators of Goldenscape Greenhouses including the firm’s founder, Peter Wangai, have been arrested and are set to face suspected of fraud charges.
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