Businessman Charged With Sh75M Fake Sugar Fraud

A Nairobi businessman is facing serious fraud charges after allegedly swindling investors out of Sh75 million in a fake sugar importation scheme that promised lucrative returns from Brazilian sugar deals.

Abdirizak Kasim Bare, 46, appeared before Trial Magistrate Robinson Ondieki on Tuesday after a warrant of arrest was issued when he failed to appear for his scheduled court hearing. The magistrate noted this was not the first time Bare had absconded from court proceedings.

Despite appearing in court two hours after the warrant was issued and requesting its lifting, Bare was denied bail restoration and ordered to remain in custody pending the court’s ruling on his application.

According to court documents and the Directorate of Criminal Investigations (DCI), Bare operated as part of a criminal syndicate that targeted investors with promises of importing sugar from Brazil. The scheme allegedly defrauded multiple victims between May and October 2023 in Nairobi.

The charges detail how Bare and his co-accused obtained:

• Sh45,150,100 from Raise Mohamed
• Sh18 million from Sadia Abdi Mohamed
• Sh5,786,000 from Halima Abdulahi Afe
• Sh6,700,000 from Wariyo Godana Kalicha

All transactions were reportedly made under the false pretense that the accused could successfully import sugar from Brazil for resale.

Bare faces charges alongside Abdi Khani Gedi and Noor Hassan. However, two other suspected members of the syndicate, Mary Muthoni Gitonga and Grace Mwarania Waiguma, remain at large according to DCI investigators.

The DCI has described Bare as the prime suspect in what they characterize as an elaborate criminal operation. Investigators report that the syndicate’s activities resulted in losses exceeding Sh100 million, affecting at least four business persons who invested in the fraudulent scheme.

The case highlights a troubling pattern of investment fraud targeting Kenya’s business community. The alleged scheme exploited investors’ trust by presenting what appeared to be legitimate import opportunities in the sugar trade, a commodity with significant demand in the Kenyan market.

The suspects allegedly used their positions to gain credibility with potential investors, convincing them to part with substantial sums based on false promises of profitable sugar importation deals from Brazil.

The case represents part of ongoing efforts by Kenyan authorities to crack down on investment fraud schemes that have plagued the country’s business sector. The DCI continues to investigate the full extent of the syndicate’s operations while searching for the remaining suspects.

Bare’s next court appearance will determine whether his bail will be restored or if he will continue to be held in custody as the case proceeds.