Capital Chicken Saga: Why Would Ugandans throw billions into a ‘non-existent’ investment scheme?

Why would you just invest in a venture that you are not sure about its sustainability plan?

This is the question that people who invested in Capital Chicken, a poultry farm investment scheme operating in Kampala could have failed to answer in detail.

“We are an agribusiness contract farming partnership enterprise who rear poultry on behalf of individuals who wish to earn an income out of poultry farming but are limited by a number of factors including but not limited to limited skills, no access to land, insufficient capital, lack stable market and time,” Capital Chicken’s website reads.

Capital Chicken was headquartered at Plot 74, Kanjokya Street in Kamwokya, and another branch at Nyumba Kubwa on Ben Kiwanuka Street all in Kampala.

Information on its website indicates a carefully thought-out mission and vision.

It also indicates reputable media houses and other corporate companies listed as partners in the business.

The company reportedly told investors they had a farm in Mukono from where they allegedly reared the chicken and to prove this, they would throw around photos depicting a chicken farm.

It welcomed investments between Ugx1 million to infinity for individuals whereas there was also an allowance for investing as a group by pooling resources where at the end of every month one would get profits amounting to 15% of their total investment.

The fake investment scheme operated in such a manner that made its members trust it by signing contracts that were binding for both parties.

The amount would be paid at the end of five months since this was the expiry of each contract and a member had the liberty to choose whether to get only the profit and the initial capital stays to make another profit according to an article by the Nile Post, an online blog under Next Media.

A few days ago, media outlets were awash with reports that the company had closed shop, leaving many ‘investors’ hurt.

The Capital Markets Authority (CMA) distanced itself from the company’s operations.

Uganda Police’s Latest Statement on Capital Chicken Scam

October 4, 2023, Investigation Update – Alleged Fraud Involving CAPITAL CHICKEN.

“The territorial Police at Kira Road would like to provide an update on an ongoing investigation into alleged fraudulent activities involving a company known as CAPITAL CHICKEN.

It is alleged that between the years 2021 and 2023, CAPITAL CHICKEN operated an office along Kanjokya Street in Kampala Central Division, where individuals entrusted their money for investment, with the promise of returns. Initially, this operation appeared to run smoothly, but recently, concerns arose as some members encountered unusual behavior from the management.

Reports indicated that members were being asked to “come back later” when visiting the office for transactions. On September 29, 2023, the situation escalated when individuals arrived at the office to find it unexpectedly closed. In light of these developments, concerned citizens promptly reported the matter to the police.

The Kira Road Police Central Police initiated investigations under case numbers GEF 38/2023 and GEF 39/2023. Statements have been recorded from 41 victims, shedding light on transactions totaling approximately 1,641,376,000 Ugandan Shillings. Furthermore, relevant documents pertaining to these transactions have been recovered to aid in our ongoing investigation.

Currently, the primary suspects in this case are identified as; Wamanga Pius, Sempebwa Ernest, and others.

We want to assure the public that this matter is being treated with utmost seriousness. Our investigators are diligently working to uncover the facts surrounding this alleged fraud. We understand the concerns of the victims and the public, and we are committed to bringing this investigation to a swift and just conclusion.

We encourage anyone who has been affected by the company or has information related to this case to come forward and cooperate with our investigators.

As the investigation progresses, we will continue to provide updates to keep the public informed – Police Statement Ends.

Media Reports

Media houses have recently picked interest in this story and published reports to set the agenda as authorities continue with the investigations.

In this link, https://nilepost.co.ug/2023/10/03/capital-chicken-how-ugandans-lost-billions-in-non-existent-poultry-rearing-investment-scheme/ the Nile Post captures the pain of some of the victims that could have failed to answer the question that forms the intro of this article.

Executive Watch will publish the latest developments on this story as it happens.

Disclaimer: Some content in this article was directly picked from the Nile Post.