Kenyan industrialist and billionaire Vimal Shah testified in court detailing how his company lost Ksh102.4 million in a foreign exchange arrangement intended to secure US dollars for raw material imports.
The Failed Transaction
While taking the witness stand on Monday, September 15, 2026, Shah revealed that the company transferred Ksh102,437,500 from its account in 2023 after entering an agreement to facilitate access to foreign currency.
According to bank records presented during the proceedings:
- The full Ksh102.4 million was transferred to a third-party recipient company on the same day the agreement was finalized.
- Shortly thereafter, Ksh96.4 million—representing nearly 99% of the deposited funds—was redirected from that recipient entity to another firm.
Key Revelations in Court
During cross-examination, Shah clarified critical aspects regarding the transaction and the accused individual in the case:
- No Direct Transfer to the Accused: Shah acknowledged that no funds were remitted directly to the individual facing charges. Bank trails showed money flowing strictly between corporate entities.
- Lack of Corporate Linkage: He confirmed that the accused was neither a shareholder nor a director of the secondary entity that received the bulk of the redirected funds, making it impossible to confirm from available documents if the individual personally benefited.
- No Proof of Written Collusion: Addressing the charge of conspiracy to defraud, Shah conceded that no documentary evidence or written communications existed demonstrating collusion or prior coordination among the accused parties to defraud his firm.
- Institutional Arbitration: Shah stated that the primary ongoing arbitration arising from the failed transaction is between his company and the recipient institution, rather than against the individual directly.
- Procedural Oversight: The defense noted that Shah’s company had not submitted a formal board resolution authorizing the court proceedings, though Shah maintained that the board was fully aware of the legal action.
Broader Context: Kenya’s Forex & Investment Landscape
The court proceedings unfold against a backdrop of heightened regulatory scrutiny by Kenyan financial authorities regarding unlicensed currency trading and high-risk financial instruments:
- CMA Crackdown: On September 11, 2026, the Capital Markets Authority (CMA) issued an official warning flagging 15 unlicensed investment platforms operating illegally within the country.
- Online Forex Losses: According to the CMA’s 2026 annual performance report, retail online foreign exchange traders recorded gross losses totaling Ksh7.12 billion in 2025.
- Declining Market Participation: Active retail trading accounts in Kenya plunged by 46.2% year-over-year, dropping to 152,110 as investor caution increased across the market.
Never Miss a Story: Join Our Newsletter
