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Scam “Capital Chicken” Defrauds Ugandans of Billions

Muwanga Ronald by Muwanga Ronald
October 3, 2023
in Business
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Scam “Capital Chicken” Defrauds Ugandans of Billions
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Ugandans have fallen victim to yet another fraudulent scheme, as the “Capital Chicken” investment ploy has swindled people out of substantial amounts of money.

Targeting primarily corporate investors looking to enter the poultry business without the hassle of direct involvement, Capital Chicken promised significant returns.

However, this seemingly legitimate venture turned out to be a sophisticated scam that duped countless individuals.

The Alluring Promise of Capital Chicken

Capital Chicken attracted investors by offering to manage poultry farming on their behalf.

This appealed to individuals and even groups, allowing them to earn income from poultry farming without needing specific skills, land access, or substantial capital.

The scheme invited investments ranging from one million shillings upwards, with a promise of 15% monthly profits.

For instance, a ten million shilling investment would yield 1.5 million shillings each month, accumulating to 6 million shillings over five months.

Trusted by Many: The Company’s Deceptive Charm

The scam instilled trust in its investors through seemingly legitimate contracts that bound both parties.

The company claimed to be registered and insured, which reassured its members.

Moreover, they shared photos of what they purported to be their poultry farm, further convincing investors of their legitimacy.

Red Flags and Warnings

Last month, the Capital Markets Authority (CMA) issued a red alert about Capital Chicken, stating that the company was not regulated.

The CMA emphasized the importance of investing in regulated opportunities and seeking advice from licensed investment advisors.

Despite this warning, many investors continued to place their trust in Capital Chicken.

Capital Chicken’s Response

In response to the CMA’s caution, Capital Chicken defended itself, asserting that it operated as a legitimate farming partnership company under the Companies Act of 2012.

The company claimed that its clients’ capital was secure, backed by Sanlam insurance and quality breeds.

Troubles Begin to Surface

As of August, Capital Chicken had started experiencing issues.

Investors were not receiving their promised returns, and when questioned, the company cited challenges with chicken suppliers.

However, it soon became apparent that something more sinister was afoot, as the company ceased communication with its investors.

Past Scams in Uganda: A Disturbing Trend

The Capital Chicken scam is the latest in a series of financial frauds that have plagued Uganda in recent years.

Notable schemes include BLQ, Telex Free, and Amazon Traders, each leaving countless victims without recourse.

As the country grapples with the aftermath of the Capital Chicken scandal, it serves as a stark reminder of the need for vigilance when it comes to investment opportunities.

Ugandans must remain cautious and prioritize regulated investments to avoid falling victim to future scams.

By shedding light on these fraudulent activities, we hope to prevent others from becoming victims of these deceitful schemes.

Tags: Capital Chicken
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Muwanga Ronald

Muwanga Ronald

Muwanga Ronald is editor in chief of the UGANDANZ news website. He was formerly editorial director of UGANDANZ.COM, overseeing the publication’s digital operations. Before joining UGANDANZ in December 2018, Ronald was managing editor of NILE HOST In 2014, he was a finalist for the UJA Awards for Young Journalists for his reporting on the women's emancipation. Under his leadership NILE HOST won Media Industry Newsletter's Best of the Web award in 2018. A graduate of Makerere University, Ronald speaks Luganda and French and lives in Kampala with his wife and two children.

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