Sh102 Million Forex Deal Unravels as Vimal Shah Takes the Stand in Nairobi Court

Bidco Africa chairman, Vimal Shah has told a Nairobi court how a foreign-currency transaction worth Sh102.44 million collapsed after his company was promised US dollars within 24 hours.

 Shah was testifying in the criminal case against businessman Nicholas “Nik” Nesbitt, who is charged with conspiracy to defraud and has denied the allegations. Nesbitt is out on Sh500,000 cash bail.

Bidco Africa chairperson Vimal Shah has told a Nairobi court how his company lost Sh102.4 million in a failed foreign exchange transaction…

 The dispute dates to May 2023, when Kenya was experiencing a shortage of US dollars. Shah told the court that Bidco needed dollars to pay for imported raw materials and that Nesbitt, whom he had known for 15 to 20 years through business and professional associations, offered to help source the currency.

 Shah said Nesbitt introduced him to Bulent Boytorun, described as a business associate with expertise in cryptocurrency and stablecoins. According to Shah, he was assured that Bidco would receive the dollars the following day.

 Under a trade finance agreement, Bidco transferred Sh102,437,500 to Bee N Bee Kenya Limited, expecting $745,000 at an agreed exchange rate of Sh137.50 to the dollar. The dollars, however, were not delivered as promised. Court testimony indicated that Bidco eventually received about $300,000, leaving $445,000 outstanding.

 The case has both criminal and civil dimensions. An arbitration process subsequently resulted in an award concerning the outstanding amount, while the criminal prosecution against Nesbitt continues.

 During cross-examination, the defence questioned Nesbitt’s connection to the transaction, noting that he did not sign the agreement. Shah also acknowledged that he could not establish whether Nesbitt personally benefited from the transferred funds.

 The prosecution alleges that Nesbitt falsely represented that he could facilitate the conversion of the money into US dollars. Nesbitt denies the charge, and the court has yet to determine criminal liability. The hearing is continuing.