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Estonian investor among 7 to testify in trader's Sh400m fraud case

Investors pumped in cash with businessman Desire Muhinyuza registered as bank signatory.

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by Peter Obuya

News08 November 2023 - 09:58
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In Summary


  • Muhinyuza is the director of Stay Online in Rwanda and the mission was to expand the firm's operations into Kenya.
  • Senior principal magistrate Ben Mark Ekhubi allowed the trial to be both physical and virtual to accommodate witnesses from outside the country.
Kirimi Koome before chief magistrate Lucas Onyina at the Milimani law courts in Nairobi where he was charged with conspiracy to defraud on October 17, 2023

An Estonian millionaire and a Dutch investor are among seven witnesses the state has lined up to testify in a case where a Kenyan businessman is charged with conspiracy to defraud an online company of Sh400 million.

Kirimi Koome was three weeks ago charged with conspiracy to defraud Stay Online Limited of $2,619,583.27 (approximately Sh400 million) being funds that belong to Merchants by falsely representing himself as the owner of the cash.

He was also charged with stealing some Sh14.9 million from from the firm, cash that had been entrusted to him to make payment for the provision of taxes.

Koome  denied the charges and was released on a Sh500,000 bail.

When the matter came up for pre-trial on Tuesday, the state through prosecutor James Gachoka said the defence team had been supplied with all the required documents and witness statements.

Among those to testify are an Estonian millionaire and a Dutch investor who pumped in the cash that was in the company's accounts through their Rwandan subsidiary.

Senior principal magistrate Ben Mark Ekhubi allowed the trial to be both physical and virtual to accommodate witnesses who will be testifying from outside the country.

The matter was scheduled for hearing on November 24.

The probe by the Directorate of Criminal Investigations has since unearthed that Koome was approached by a Rwandan investor to register the firm's subsidiary in Kenya.

That is partly because of the bureaucracy that makes it difficult for foreigners to register new companies in Kenya.

Stay Online was 100 per cent registered under Koome's name as the owner.

Then the investors pumped in cash with Rwandan businessman Desire Muhinyuza registered as a bank signatory.

Muhinyuza is the director of Stay Online in Rwanda and the mission was to expand the firm's operations into Kenya.

After three months of operations in Kenya, Desire asked Koome to hand over the firm to him so he could appoint a director who understands its operations.

"He then resigned and was paid his dues," court documents show.

The state however claims Koome wrote to the bank seeking to withdraw funds in the accounts of Stay Online 'because he was still the director and owner'.

That move heralded another court case that resulted in orders freezing the accounts until the criminal case against Koome is heard and determined.

Koome's arraignment last month followed a warrant of arrest issued by a Nairobi magistrate after police failed to locate his residence with detectives saying his phone was always off and on.

He was finally arrested arrested at an Air BnB in Westalnds on October 11, two days after the arrest warrant was issued.

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