By Kenyan prosecutors on Wednesday charged two women with running an unlicensed collective investment scheme and fraudulently inducing the public to trade securities, in a case linked to Quant Vest Stock Exchange Ltd (QVSE) and Global Investment Group (GIG).
Ruth Mueni Kimeu and Mary Katuma Mwangangi appeared before the Chief Magistrate’s Court at Milimani Law Courts in Nairobi, according to a charge sheet filed by the Office of the Director of Public Prosecutions (ODPP) on behalf of the Capital Markets Authority (CMA).
The two face two counts. The first accuses them of carrying out the business of a collective investment scheme without a licence, contrary to Section 23(2) as read with Section 34(A)(1)(a) of the Capital Markets Act. The second charges them with fraudulently inducing trading in securities, contrary to Section 32H of the same Act.
According to the charge sheet, the offences occurred “on diverse dates between 1st January 2026 and 17th September 2026” at an unknown place within Kenya. Prosecutors allege the two women, “jointly with others not before court,” ran the QVSE/GIG scheme without a licence issued by the CMA and induced members of the public to subscribe for and trade in securities “by publishing statements and making promises which were deceptive.”
Police records listed in the document show the case was registered under Police Case No. 141/13/2026. The accused were arrested without a warrant on September 22 and were presented to court the following day. The charge sheet lists their bond status as “in custody,” with no application made for summons to issue.
The document names four prosecution witnesses, including Lawrence Mumina of the CMA and a police corporal identified as James Aswani. Kimeu, whose address is listed as Machakos, and Mwangangi, listed as being from Kitui, are both identified as adult Kenyan nationals.
The charges follow a public warning issued by the CMA on September 11, when the regulator named 15 entities it said were soliciting money from Kenyans without the required licences.
The Capital Markets Authority named 15 entities it said were collecting money from Kenyans through fake investment schemes without a license, issuing the caution on Friday, September 11, and saying the firms lacked the approval required to offer investment services in the country.
The list included Global Investment Group (GIG) and QVSE, among others such as Kore Exchange, Abacus Wealth Management and Bitblock Capital Limited.
The regulator said the Directorate of Criminal Investigations was probing the 15 firms alongside the CMA and other law enforcement agencies, and warned Kenyans against dealing with entities and persons who disguise fraud as investment opportunities.
The caution added to a string of warnings the CMA had issued during the year over unlicensed online platforms promising quick returns through forex trading and cryptocurrency products.
The case adds to a series of prosecutions in Kenya targeting unlicensed collective investment schemes, an offence the CMA has pursued with increasing frequency as online platforms promising high returns have proliferated.
In a separate case cited by Kenyan prosecutors, an online influencer and a co-accused were charged at Makadara Law Courts with obtaining more than 80 million shillings from the public through a similarly structured unlicensed scheme.
Under Kenyan law, running a collective investment scheme ; a pooled fund that invests contributions from multiple members of the public without CMA authorisation is a criminal offence.
Fraudulent inducement to trade securities is a separate offence carrying its own penalties under the Capital Markets Act.
The CMA has repeatedly urged investors to verify a firm’s licensing status through its official registry before committing funds, warning that unlicensed platforms often promise unrealistic returns to attract deposits before collapsing or disappearing with investors’ money.
