Vimal Shah has detailed in court how a Ksh102.4 million foreign exchange transaction turned into a major financial loss for Bidco Africa, saying his long-standing trust in former Capital Markets Authority chairman Nick Nesbitt influenced his decision to enter the deal.
Shah, the Bidco Africa chairman and founder, told the Milimani Magistrate’s Court that he had known Nesbitt for between 15 and 20 years. Their long business relationship, he said, gave him confidence when Nesbitt introduced him to Bülent Boytorun as his business partner.
“I trusted him because he’s a friend,” Shah told the court.
According to Shah, Nesbitt presented Boytorun as an expert in cryptocurrency and stablecoin transactions who could help Bidco obtain US dollars.
The company needed a steady supply of dollars to pay for imported raw materials but was experiencing difficulties getting enough foreign currency through banks.
The proposed transaction appeared simple. Bidco would send Kenya shillings and receive the equivalent amount in US dollars in its account the following day.
Shah said Bidco agreed to buy USD745,000 at an exchange rate of 137.5, with May 24, 2023, set as the value date.
A Trade Finance Support Agreement was signed on May 23, requiring the dollars to be deposited into Bidco’s US dollar account the following day.Bidco then transferred Ksh102,437,500 to Bee N Bee Kenya Limited through RTGS.
But the promised dollars never arrived.
“On the 24th, nothing arrived,” Shah testified.
The failure meant Bidco did not receive the foreign currency it had paid for, despite having transferred more than Ksh102 million.
Shah said the money was important because the company needed the dollars to pay for imported raw materials and maintain its operations.
He told the court that he would not have given such a large amount of money directly to Boytorun because he did not know him. According to Shah, it was Nesbitt’s introduction and the trust built over many years that made the transaction possible.
“I can say very openly here that without the trust, I would never have given this sort of money to a Mr. Bulent, who I didn’t even know,” he said.
Shah further told the court that he later understood Nesbitt to be a one-third partner in the UK-based Bee N Bee company, which owned the Kenyan entity that received Bidco’s money.
That understanding, he said, reinforced his belief that Nesbitt and Boytorun were operating the business together.
The court also heard that Nesbitt was a signatory to accounts linked to the business and was involved in opening the accounts, according to Shah’s testimony.
Before making the transfer, Shah said Bidco also relied on the existence of Bee N Bee Kenya Limited and its banking relationship as signs that the transaction was genuine. He testified that he contacted Standard Chartered Bank and was informed that Bee N Bee Kenya Limited was an existing account holder.
The situation became more troubling for Shah after the transaction failed. He told the court that he later came across advertisements by Nesbitt promoting what appeared to be the same currency exchange business under the name BNX Partners Limited.
According to Shah, the advertisements offered customers the opportunity to exchange Kenya shillings for US dollars.
Shah said he confronted Nesbitt over the advertisements and asked him what had happened to Bidco’s money.
He told the court that Nesbitt responded, “I got to make money.”
Nesbitt has denied the charge of conspiracy to defraud. The case concerns claims that on May 24, 2023, within Nairobi County, he conspired to defraud Shah of Ksh102,437,500 by falsely pretending that he was in a position to convert the money into US dollars.
The charges arise from the same transaction.
The court is expected to continue hearing evidence on October 7, 2026.
Leave feedback about this