I went visiting my aunt and in the course of our talks she brought up the topic of FEP. Introducing me to it.

I told her I have heard about it but its said to be a scam.Appperently she has invested about 100k in it.

Someone please tell me exactly what the issues are so that I share with her.
Meanwhile she received her certificates yesturday and to her that is proof that all is well.

I have read the whole thread but it has nothing specific.It has the "If it walks like a duck......"cautious statements but nothing saying this is what is wrong.

I have seen some of their investments like Kisima estate,their mobikash and hotel in Embu.That they are not yet making money does not mean they are a scam.

NB.I wont invest in them though.I met one of their managers and was not impressed.

At the end of every financial year, every legitimate business including a kiosk will show their financial statements - Balance sheet, and income statement. Even when they are making losses due to capital expenditure. Has your aunt received any of these since she joined?

Kisima estate. The last time I heard that they were building a housing estate--that was in 2010 or there about...Have they sold any? Have you seen any house sold in Lukenya? What guarantee do you have about Tai housing?

Yes.

I managed to attend the FEP AGM at Hotel Suntec - SAGANA

The AGM business started 3hrs late and the CEO and Chairman read through their entire written report.
-Job Kihumba of STANDARD INVESTMENT BANK (SIB) will be responsible for the OTC market which will be operational by August 2014.
-A rights issue is on the works and 420million ordinary shares will be offered to investors via a PRIVATE private offer. SIB are the lead transaction advisers and are working on the information memorandum. If the existing shareholders cannot take up all the 420mn shares on offer, other shareholders will be INVITED to participate. To be eligible to participate you will first and foremost be a CHRISTIAN.
-All FEP shareholders will get shares in fountain DTM once the license is issued.... there will be another AGM to ratify the same.
-FEP shareholders should visit any FEP office 7 days post AGM to verify their details before the share certificates are printed or fill in some shareholder details forms available at the AGM venue
-The net profit arising from operations was 22.7mn from 16.9mn last year. However the total comprehensive income reported is 1.17bn as a result of value gain in investment property.
-Shareholder funds grew from 1.62bn to 3.71bn this year
-What made shareholders happy was the two bonus share for every share held. The annual report and financial statements were provided during the meeting which was an ambush as we did not have time to go through them. Likewise the articles of association which only the management knew about.

I will post the photos of the hotel in due course.