A Machakos County employee and a primary school teacher have been charged with allegedly operating an investment scheme without a Capital Markets Authority (CMA) licence and fraudulently inducing members of the public to invest in securities.
Ruth Mueni Kimeu, an employee of Machakos County, and Mary Katuma Mwangangi denied two counts brought under the Capital Markets Act when they appeared before Milimani Chief Magistrate Gethi Kibiru.
The prosecution alleges that the two, jointly with other persons who have not been charged, operated an investment scheme between January 1 and September 17, 2026, at an unknown location in Kenya. They are accused of using the scheme to induce members of the public to subscribe for and trade in securities.
Kimeu and Mwangangi are jointly accused of carrying out the business through Quant Vest Stock Exchange Limited (QVSE)/Global Investment Group (GIG) without a CMA licence.
They also face a separate count of fraudulently inducing members of the public to subscribe for and trade in securities through the two entities by allegedly publishing deceptive statements and making false promises.
The charges were opposed by the two women, whose lawyers, Japheth Mwalimu and Douglas Muumbi, sought their release on bond. Mwalimu argued that no investors had lost money in the alleged scheme.
“The accused persons came up with an investment idea but no one has lost any money,” Mr Mwalimu told the court while seeking their release on bond.
The defence further argued that the accused had cooperated with investigators from the police and CMA and were not flight risks because their places of work and residences were known to the authorities.
The lawyers also referred the court to a related case before a Kitui court, where other suspects were released on September 7 on a Sh100,000 bond or Sh50,000 cash bail.
Mwalimu acknowledged that the decision was not binding on the Milimani court but argued that it was relevant to the bail application.
“Even though decisions of a court of concurrent jurisdiction are not binding on this court, it is a pointer to the nature of the case,” Mr Mwalimu said.
Prosecuting counsel Hilary Isiaho did not oppose the application for bail but asked the magistrate to take into account the seriousness of the charges when setting the terms.
Mr Isiaho also requested that the matter be mentioned after two weeks for pre-trial directions, with the prosecution expected to advance its case against the two accused.
In his ruling, Mr Kibiru granted each accused a Sh200,000 bond or an alternative cash bail of Sh100,000. He further directed the prosecution to provide the defence with witness statements and exhibits.
The two paid the cash bail and were released from custody. The case will be mentioned on October 7, 2026, for pre-trial directions.
According to the charge sheet, the first count relates to operating the investment scheme without the required CMA licence. The charge is brought under Section 23(2), read with Section 34A(i)(a), of the Capital Markets Act.
The second count concerns the alleged fraudulent inducement of members of the public to subscribe for and trade in securities through QVSE/GIG. The prosecution alleges that the accused made deceptive statements and promises that were intended to persuade members of the public to invest through the entities.
The alleged offences are said to have been committed between January 1 and September 17, 2026, at an unspecified location within Kenya. The charges were filed by the Director of Public Prosecutions (DPP).
The case will now proceed to the pre-trial stage, with the prosecution required to supply the defence with the relevant statements and exhibits before the October 7 mention.
