Kenya, July 12 -- A new investment platform, Linitext, has sparked widespread interest across Kenya, promising high returns for as little as KES 1000 investment via M-Pesa.
Promoted heavily on social media, Linitext claims investors can earn 5% to 130% daily returns with minimal effort, drawing thousands to its platform.
However, concerns about whether Linitext is a scam or legit are growing, prompting questions about its credibility and safety.
The platform's allure of investing with M-Pesa Kenya has ignited both excitement and doubt in equal measure.
Linitext markets itself as an accessible way to start investing in Kenya, allowing users to deposit funds via M-Pesa and track earnings through a sleek online interface.
People claim investors can turn KES 1,000 into KES 1050 in a day, as 5% ROI, touting Linitext high returns as a game-changer. The platform's promise of instant M-Pesa withdrawals and no trading skills required has attracted young Kenyans seeking passive income in Kenya.
As investment scams Kenya often uses similar tactics, promising unrealistic returns to lure unsuspecting investors.
Experts warn that Linitext's legitimacy concerns stem from its lack of transparency. Unlike Ziidi MMF, a Capital Markets Authority (CMA)-regulated fund offering modest returns via M-Pesa, Linitext's regulatory status remains unclear.
The CMA has not listed Linitext among approved investment schemes, and its absence from the Financial Conduct Authority (FCA) or similar registers fuels doubts.
According to MoneyHelper, investment scams often promise high returns with low risk and use aggressive marketing on social media, mirroring Linitext's approach. Investors are urged to verify platforms with the CMA before committing funds.
The Linitext investment platform may exhibit hallmarks of a Ponzi scheme Kenya, where early investors are paid with funds from new ones, creating an illusion of profitability.
Current investors report small withdrawals being processed to build trust, a common scam tactic noted by Moneysmart.gov.au. Attempts to withdraw larger sums often result in excuses or demands for additional fees, a red flag for Kenya online investment scams.
As Kenyans explore how to invest with M-Pesa, caution is advised. The Securities Commission Malaysia highlights that legitimate investments rarely guarantee high returns without risk.
Those considering Linitext should seek CMA-regulated investments in Kenya, request independent financial advice, and report suspicious platforms to Action Fraud Kenya or the CMA.
Until Linitext provides verifiable credentials, its promise of smart investing in Kenya remains under scrutiny, with potential investors urged to tread carefully.
Published by HT Digital Content Services with permission from Bana Kenya.