Pyramid scheme architect is dead

The founder of one of the pyramid schemes that defrauded Kenyans of millions of shillings five years ago has died.

Mr George Donde was the founder of Deci, which was the largest of the unregulated financial schemes that consigned thousands of Kenyans into financial turmoil after it collapsed.

Deci went underground with an estimated two billion shillings of more than 94,000 investors.

Some 140,000 Kenyans had invested over eight billion shillings in 270 pyramid schemes between 2006 and 2007 across the country.

It is alleged that some five billion shillings is still being held by Central Bank in frozen accounts following the collapse of the schemes.

Most directors of the schemes lived lavishly with offshore accounts in tax havens such as Panama.

The collapse of the schemes led to loss of earnings, family and matrimonial break-ups, depression, and even suicide and development of illnesses such as high-blood pressure.

A taskforce commissioned by Cooperative Development and Marketing minister Joseph Nyaga and chaired by a former minister for the Environment, Francis Nyenze, said Deci and other pyramid schemes thrived on the common man’s desire for economic empowerment, lack of knowledge and greed.

At one point, Mr Donde was held at gunpoint by irate investors in Kiambu, the taskforce reported.

“His release was only secured after payment of Sh20 million to the investors. How this money was obtained in the wee hours of the night still remains a mystery,” states the Nyenze report.