Police in Migori County, on Wednesday arrested a manager working for a microfinance firm accused of defrauding its members of Ksh10 million.
The arrest which was made at the institution's Migori branch, came after residents of the town raised alarm over the company’s failure to fulfil its obligations to them.
“Three thousand or more residents of Migori were defrauded by a Microfinance within the town. They defrauded the members of the public an amount totalling to Ksh10 million, in the pretence that they would be paid dividends almost three times more,” the Migori Police Commander stated.
He further revealed that the suspect who was arrested had been arraigned at a Migori Court and charged with fraud and forgery.
According to the company’s website and social media handles, the microfinance has been operating in various parts of the country and has been in operation since 2014.
The company stated that it offers several loan facilities to its members ranging from personal to business loans.
“(Name of Microfinance) offers flexible loan products for all kinds of uses. These loans range from individual loans for personal emergencies to large-volume loans for financing business enterprises”, the website read.
The microfinance was accused of defrauding its members who have been saving with the institution, and also dodging loan disbursement to the members who had applied.
A comment from one distraught member from Rongo revealed that the institution had not disbursed funds for a loan applied for in October 2023.
“I applied for my loan in October, but I have not received it to date. On Monday I will head there to get a refund of my money”, the comment read
In previous reports recorded four days ago, the microfinance shut down its operations in Rongo citing insecurity of its employees after members threatened to storm the offices.
In screenshots seen by Kenyans.co.ke, the financial institution sent a text message to its clients in Rongo stating, “Following threats from clients to storm our offices and injure our employees. The company has decided to close office shortly to work on refund of interest before we reopen. We ask you to remain calm as we sort it out. Sorry for the inconvenience.”
Investigations into the case are still ongoing.
