Kenya looks to privatise state assets to draw private-sector investments: Ruto
The government plans to start with listing the Kenya Pipeline Company via an IPO on the Nairobi Securities Exchange this year, Ruto said.
"We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation," he said.
Ruto also said that well-functioning domestic capital markets could reduce reliance on external debt.
Kenya has been seeking new sources of funding since deadly nationwide protests last summer forced it to pursue austerity measures and scrap planned tax hikes worth more than 346-billion Kenyan shillings (R46.77bn).
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IOL News
2 days ago
- IOL News
CBEX Crypto Scam: Africa's AI-Hyped Ponzi Nightmare and the Urgent Call for Real Regulation
Logos of different cryptocurrencies are displayed during the Token2049 conference in Dubai. Beneath the glittering promises of the cryptocurrency world, where AI hype shines brightest, lies a sinister truth: CryptoBridge Exchange (CBEX). This AI-powered Ponzi scheme has shattered and embittered countless African investors. Edwin, a Kenyan government worker, is just one of many victims, having lost $16,000—borrowed money, shattered dreams, and bruised dignity. His isolated story is a symptom of a broader crisis: a digital swindle spreading unchecked across Africa's vulnerable investment landscape. CBEX initially presented an enticing opportunity: an AI trading system guaranteeing monthly returns and attractive referral bonuses. Its appearance of legitimacy was crafted through a complex network of corporate identities and fraudulent certificates. The platform employed "brandjacking," using the acronym of China's Beijing Equity Exchange, a deceptive tactic designed to instill a false sense of security in investors. The unfortunate reality is that these schemes exploit both the lack of technological awareness and the financial aspirations of ordinary Africans seeking to improve their economic standing. The Anatomy of a Modern Ponzi Scheme Africa is no stranger to Ponzi schemes, but CBEX marks a disturbing new phase: the combination of cryptocurrency's lack of transparency with the enticing appeal of artificial intelligence. Crypto scams globally siphoned off an estimated $9.9 billion last year alone, according to blockchain analysis firm Chainalysis—a staggering sum that underscores the profitability and prevalence of these fraudulent activities. CBEX operated a sophisticated, yet classic, Ponzi scheme. Investors observed fabricated "growth" in their accounts, while their actual investments were covertly drained. These funds were funneled through intricate TRON blockchain transactions, distributed across numerous wallets, and converted into various cryptocurrencies to obscure their origin. This digital illusion led investors to believe their capital was expanding, even as it was silently pilfered. Such schemes flourish where financial regulation is lax and populations are financially desperate. CBEX exploited these vulnerabilities in Kenya and Nigeria, its primary operational hubs. Large segments of the populations in these countries are financially underserved, lack financial literacy, and are keen for alternative income. CBEX capitalized on these gaps by inundating messaging apps like Telegram with alluring, yet ultimately unrealistic, promises. Why Africa? Why Now? With a burgeoning youth population, over 60% of whom are under 25 according to a 2023 African Development Bank report, Africa is seeing its young people increasingly embrace cryptocurrency. This adoption is driven by the desire for economic opportunity amidst limited formal employment and unstable local currencies, reflecting a growing demand for digital financial solutions. The rapid adoption of cryptocurrency in Africa has unfortunately outpaced the implementation of adequate safeguards, leading to a precarious situation. Instead of proactive measures, governments have largely reacted after the fact. For instance, Kenya's Capital Markets Authority only issued investor alerts once significant harm had already occurred, and Nigeria's EFCC has been compelled to reactively pursue scammers and recover funds. These isolated responses are insufficient for a crisis that urgently requires a holistic and forward-looking regulatory framework. CBEX's acquisition of an anti-money laundering certificate—even if only for consultancy services—highlights a concerning blend of scammer ingenuity and institutional oversight. This loophole in governmental and institutional diligence emboldens fraudsters, who expertly exploit bureaucratic gaps and insufficient cross-border regulatory collaboration. What Must Be Done? The Imperative for Stronger Regulation and Education African governments need to abandon their current reactive and fragmented regulatory approach. While Nigeria's new Investments and Securities Act, which criminalises Ponzi schemes, is a welcome development, robust and immediate enforcement, coupled with enhanced cross-border collaboration, is crucial. Warnings and investor alerts from regulators are no longer sufficient. There's a pressing need for dedicated crypto regulatory bodies. These bodies must be equipped to comprehend and supervise digital asset markets, with the authority to vet platforms, enforce transparency, and implement stringent Know-Your-Customer (KYC) protocols. Public education on crypto risks is crucial and should be integrated into financial literacy initiatives. Many are drawn to the allure of "guaranteed returns" from AI-powered trading bots, often unaware of the volatile and speculative nature of digital assets. Governments, NGOs, and community organizations should collaborate to provide clear and accessible information on identifying scams. Telegram and other similar technology platforms need to enhance their scam-detection systems. While Telegram has started to ban problematic users and identify scam groups, CBEX's ongoing activity on the platform underscores the critical need for more proactive surveillance and collaboration with law enforcement. Closing Thoughts: Never Again For victims such as Edwin and Abby, "never again" is more than a personal promise; it's a demand for systemic change. While the CBEX scandal may account for billions lost worldwide and millions domestically, the real price is the erosion of hope and the shattering of trust. This cannot be Africa's crypto epitaph. Rather, it must be the point at which we declare an end to hollow pledges and AI fantasies. The urgent need for responsible regulation, investor education, and institutional responsibility is upon us—before another CBEX rises from the depths, poised to exploit aspirations once more. By Sesona Mdlokovana UAE & African Specialist Associate at the BRICS+ Consulting Group ** MORE ARTICLES ON OUR WEBSITE ** Follow @brics_daily on X/Twitter & @brics_daily on Instagram for daily BRICS+ updates
TimesLIVE
2 days ago
- TimesLIVE
Kenya looks to privatise state assets to draw private-sector investments: Ruto
Kenya is planning to privatise some state assets via initial public offerings in order to bring in more private sector investment, President William Ruto said at the London Stock Exchange on Wednesday. The government plans to start with listing the Kenya Pipeline Company via an IPO on the Nairobi Securities Exchange this year, Ruto said. "We are committed to a structured, time-sensitive programme that identifies and prepares a robust pipeline of key government assets to be privatised through the stock exchange or improved through private sector participation," he said. Ruto also said that well-functioning domestic capital markets could reduce reliance on external debt. Kenya has been seeking new sources of funding since deadly nationwide protests last summer forced it to pursue austerity measures and scrap planned tax hikes worth more than 346-billion Kenyan shillings (R46.77bn).
eNCA
5 days ago
- eNCA
CBEX crypto scam - AI-hyped Ponzi scheme defrauds African investors
NAIROBI - Embarrassed and in debt, Edwin was left reeling after losing $16,000 to CryptoBridge Exchange (CBEX), one of the crypto-trading platforms preying on investors in Africa. Edwin, a Kenyan government worker who only gave his first name out of shame, first encountered CBEX on Telegram, a messaging app. He was lured with promises of guaranteed monthly returns made possible by AI-powered trading systems, with lucrative referral bonuses -- classic hallmarks of Ponzi schemes. "I had very big plans. But I was conned both by the platform and an agent who lied he could help recover my money," Edwin told AFP. When he began investing last August, there were initial returns, leading him to invest more despite lacking prior cryptocurrency trading experience. In total, he believes he lost roughly 2.1 million shillings ($16,000), mostly from a bank loan he is now worried about needing to repay. Blockchain analysis firm Chainalysis says some $9.9 billion was lost to crypto scams globally last year. Such scams are not new in Africa, but their scale and sophistication has grown as cryptocurrency spreads. CBEX collapsed in April, leaving scores of investors like Edwin ruined, mainly in Kenya and Nigeria, according to media reports. But AFP has confirmed from accessing messages on CBEX's private Telegram groups that it has since rebooted its operations despite ongoing investigations and warnings by authorities. - 'I'm broke' - Abby, another Kenyan investor, carries the guilt of introducing 25 family and friends to CBEX. "(They) invested so much, and it all disappeared," he told AFP. "I would really love to help them recover but I'm broke." In Nigeria, news of CBEX's collapse led to attacks on CBEX-affiliated offices, which have since closed. Adeoye, a Nigerian victim, lost N700,000 (about $450). "The offer was juicy," he said. "I knew it was a risk, but I thought I would be lucky to cash out before anything happened." CBEX used the "brandjacking" tactic, adopting an acronym similar to the China Beijing Equity Exchange to give it legitimacy. The platform claimed to be licensed in the US and said ST Technologies International was responsible for the AI trading signals, allowing it to operate in Nigeria under the corporate identity of ST Technologies International Ltd (Smart Treasure/Super Technology). It even obtained an anti-money laundering certificate from Nigeria's Economic and Financial Crimes Commission (EFCC) this January, though the EFCC has clarified that this was only for "consultancy services", not for currency exchanges. - 'Build trust' - To add further legitimacy, CBEX claimed it was established a decade ago and the ST team eight years ago. In reality, it began operations in Nigeria last July, according to local media, before spreading to Kenya. "If you check CBEX wallet addresses on-chain, they were only operating for about a year before the collapse," Kenyan cryptocurrency investigator Wycklife Sewe told AFP. While pretending to actively trade, CBEX actually moved funds out of investors' wallets via TRON (a decentralised blockchain network), said Sewe. The assets then underwent complex routing through multiple wallets and cryptocurrency conversions to obscure the audit trail. "They have designed their system using code to fool you that your money is still there and you can see it growing. But your money is moved immediately after you deposit," Sewe said, adding that CBEX was also running other scams. CBEX has changed its website domain several times to avoid attracting attention. AFP found at least four registered by it. - International warnings - In April 2024, the Hong Kong Securities and Futures Commission, an independent market regulator, issued a public alert against "CBEX Group". A recent investigation by crypto analyst Specter linked CBEX's withdrawal wallets to darknet marketplace Huione Guarantee, a Cambodia-based platform known for providing illicit tools to facilitate crypto crime. The US Treasury's Financial Crimes Enforcement Network (FinCEN) designated Huione Group a "primary money-laundering concern" in May, saying that it had facilitated more than $4 billion in illegal transactions between August 2021 and January 2025. Following CBEX's collapse, Kenya's Capital Markets Authority issued an "Investor Alert" about unregulated platforms, and parliament is discussing a bill to regulate virtual assets. - 'Never again' - Nigeria's EFCC says it has arrested two people and put out warrants for eight others in Nigeria and Kenya. A new Investments and Securities Act expressly prohibits and criminalises Ponzi schemes. But investigations are lengthy and expensive. In May, the EFCC said a "reasonable sum" of lost funds had been recovered, without stating the amount, highlighting the complexity of converting cryptocurrencies back to national currency. A Telegram spokesman told AFP that "scam content is removed when discovered and offending users banned". AFP found some CBEX Telegram groups were now labelled as scams on the platform. On June 10, CBEX, which had previously blamed hackers for the missing funds, claimed on its Telegram channels to have "compensated" the lost money. But it asked affected users to complete "verification" by paying a fee -- a common re-scamming tactic. For victims like Abby, the way forward is easy. "Never, ever again! I am done," he said. by Peris Gachahi with Oluseyi Awojulugbe in Lagos
