A Machakos County employee and a primary school teacher are in court accused of duping members of the public to invest in their stocks through a company not authorised by the Capital Markets Authority (CMA).
The two were charged between January and September 17, 2026, they induced members of the public to invest in stocks and carry out an investment scheme business without a licence from the CMA.
Both Ms Ruth Mueni Kimeu, an employee of the Machakos County and Ms Mary Katuma Mwangangi, denied two counts of carrying out business of collecting investments and fraudulent inducing investment in securities contrary to the CMA Act.
They allegedly carried out the illegal business between January 1 and September 17,2026.
They were accused of deceiving members of the public to subsribe and invest in securities.
Ms Kimeu and Ms Mwangangangi denied the charges filed against them by the Director of Public Prosecutions (DPP) claiming that “no money was lost.”
Defense lawyers Japheth Mwalimu and Douglas Muumbi told Milimani chief magistrate Alfred Gethi Kibiru that “the accused persons came up with an investment idea but no one has lost any money.”
Applying for their release on bond, the lawyers informed the court that besides the case against the two, other suspects were charged before a Kitui Court on September 7, 2026, and were released on bond.
“The two accused persons cooperated with Police and CMA personnel during investigations,” Mr Mwalimu told the court.
He added that the duo were not a flight risk as their work stations and residences are known both to Police and CMA officers.
Mr Mwalimu further informed the magistrate that the other suspects before the Kitui Court were freed on a bond of KES 100,000 each with an alternative cash bail of KES 50,000
“Even though the decisions of a court of concurrent jurisdiction are not binding to this court, it is a pointer the nature of case before this court,” stated Mwalimu
The two lawyers urged the two accused persons to be freed on reasonable bail terms.
Prosecuting counsel Hilary Isiaho did not oppose bail, but urged the magistrate to consider the gravity of the case and “grant bond terms commensurate with the weight of the matter before court.”
Isiaho asked the court to mention the case in two weeks for pre-trial directions.
In a brief ruling, Mr Kibiru released each of the accused on a bond of KES 200,000 with an alternative cash bail of KES 100,000.
The magistrate directed the prosecution to supply the defense with witness statements exhibits.
The matter will be mentioned on October 7,2026 for pre-trial directions.
Ms Kimeu and Ms Mwangangi are jointly charged with carrying out business investments business of collecting investments scheme without a license contrary to Section 23(2) as read with Section 34 (A)(i)(a) of the Capital Markets Authority (CMA).
They were accused that on diverse dates between January 1 and September 17,2026 at an unknown place within the Republic of Kenya carried out a business of an Investment Scheme to wit Quant Vest Stock Exchange Limited (QVSE)/Global Investment Group (GIG) without a licence from CMA.
The second indictment against the duo is that of fraudulent inducing trade in securities contrary to the CMA Act.
They denied that they induced members of the public to subscribe and trade in securities through QVSE and GIG by publishing statements and making promises which were deceptive.
The accused paid cash bails and were released from custody. The case will be mentioned on October 7, 2026 for further directions.
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