Nyeri, Kenya — In a poignant address during a public session on proposed regulatory changes, a 65-year-old retiree from Nyeri shared his unfortunate experience of losing Sh1.8 million to unregulated investment ventures.
According to Kenya News Agency, Moses Munyori, who worked with the Kenya Post and Telecommunications Company for 27 years before his retrenchment in 2008, a lack of due diligence and a rush to invest his golden handshake led to significant financial losses. Munyori detailed to attendees that he had invested in a variety of schemes, including company shares and savings programs, which resulted in the depletion of his funds.
Munyori recounted the major loss of Sh 380,000 to the Fountain Enterprise Programme (FEP), which subsequently shut down its offices, leaving him with no recourse for recovery. Beyond FEP, he described losses from investments in entities like Kenya Airways shares, a Cooperative Society, and even alleged deception by his former employer that cost him Sh 1.5 million.
Reflecting on the cumulative impact, Munyori lamented the potential value of the principal and interest over 15 years, which he estimated at over Sh 5 million — a sum that would have significantly aided in supporting his grandchildren’s education.
The retiree pointed to the absence of stringent government oversight at the time of his investments, which allowed unmonitored schemes to operate and exploit investors. Munyori noted that during his investment period, there were no regulatory bodies to protect members’ funds, often leaving them with no evidence to present in court against fraudulent schemes.
However, he acknowledged the progress in the current financial landscape, crediting government-implemented regulations for bringing order to investment schemes. Munyori cautioned younger investors to be vigilant and only commit to registered and regulated schemes to avoid similar misfortunes.
Data from the Retirement Benefits Authority (RBA) indicates that there are now 1,076 registered schemes with a membership of 7.1 million. The RBA also oversees 26 fund managers charged with advising trustees on investments, associated risks, and expected returns, marking a significant advancement in investor protection since Munyori’s investment era.