Al-Mizaan Sacco Ltd has become the subject of an increasing range of social media promotion, especially by Kenyan Twitter/X influencers. The firm markets itself as a seasoned financial institution, claiming to have started operations in 2011. However, in-depth probing brings its legitimacy and credibility into question.
Company Background and Claims
On its official website (https://al-mizaan.com), Al-Mizaan Sacco asserts that it was founded in 2011, initially to provide savings and credit with the aim of later diversifying into digital financial products, including indeed fixed deposit options. Supposed milestone timelines indicated on their site demonstrate an apparent growth and established reputation. However, contrary evidence from domain registration revealed that Al-Mizaan’s registration was only made 10 months ago, in stark contradiction to the stated long history.
Red Flags and Concerns
There are many red flags surrounding Al-mizaan Sacco, indicating an increased probability that it is a scam:
1. Recent Domain Registration
Despite claims of continuous existence since 2011, the website was registered only in the last year (as of April 2024). A genuine company with more than ten years in business would have built a strong online presence. There lies a blatant contradiction in the stated old history of the company and a verifiable domain age.
2. Negative User Reviews and Reports of Fraud
There are multiple reports of users who allegedly lost money while trying to withdraw their money on Al-Mizaan Sacco. The complaints allege that the system blocks users’ cash for the longest time possible and does not respond once the user submits a request for withdrawal. Some users claimed to have lost funds ranging from Ksh 2825 to Ksh 5000.
3. No Regulation
One of the most disheartening aspects is that Al-Mizaan Sacco seems not to be regulated by any financial authority in Kenya such as Sacco Societies Regulatory Authority (SASRA) or the Central Bank of Kenya (CBK). For any proper savings and credit cooperative in Kenya, they must be registered and regulated to protect the members’ funds. Without regulation, there is no guarantee regarding the safety of members’ funds.
4. Recruitment Model Based on Referrals
Advertising on social networks such as Facebook is done by Al-Mizaan Sacco through referral links, almost enticing the people to sign up so that they can “earn more.” Such tactics are usually used in Ponzi and pyramid schemes so that instead of the new investments coming from legitimate financial activities, they mainly pay out mainly to earlier investors. An authentic Sacco would not employ aggressive recruitment methods by using referrals as an incentive.
5. Blocking and Censoring Negative Reviews
The company and those promoting it tries very hard to silence critics. Those who have openly branded Al-Mizaan Sacco a scam have said that their comments were deleted and that they have been barred from interacting with the social media pages of people promoting it. Legitimate institutions rather address the problems of disgruntled clients than muzzle their voices.
Verdict: Is Al-Mizaan Sacco Legit?
In evidence, however, Al-Mizaan Sacco Ltd carries almost all the hallmark traits of scams from fraud marketing, unverifiable historical claims, complaints by users over loss of funds, lack of a regulatory presence, and Ponzi-like recruitment model. The financial risk in getting involved with Al-Mizaan Sacco is serious, and thus would-be investors or savers should be extremely careful.
Final Recommendation
Do not deposit with Al-Mizaan Sacco Ltd. One should instead look for a Sacco with proven track records of integrity in finance that can be registered with SASRA or the CBK. Verify financial institutions before investing to avoid getting ripped off.
