In May 2023, Kenya was gripped by a crippling shortage of US Dollars. Commercial banks were rationing greenbacks, importers were scrambling to settle international bills, and corporate balance sheets across the country were under severe strain.
When formal banking channels freeze up, even the largest industrial conglomerates are forced to look beyond traditional finance. That desperation created a high-stakes scenario—one that led iconic Kenyan manufacturer Bidco Africa Limited into a digital currency deal that ultimately collapsed into a major legal dispute.
Following significant public interest and media coverage surrounding the recently published Final Arbitration Award (dated February 11, 2025), along with courtroom testimony from Bidco founder Dr. Vimal Shah, here is a look at what actually transpired behind closed doors—and how personal trust interacted with institutional risk.
The Genesis: A Home Visit and a $745,000 Pitch
On May 18, 2023, as Bidco struggled to secure dollars to import raw materials, former Capital Markets Authority (CMA) Chairman Nik Nesbitt visited Dr. Vimal Shah at his home. Accompanying Nesbitt was his business associate, Mehmet Bulent Boytorun.
The two pitched a solution: their firm, Bee ‘N Bee (KE) Limited (BNB), could convert Kenyan Shillings into US Dollars within 24 hours by leveraging cryptocurrency and stablecoin arbitrage rails.
The terms were drawn up under a Trade Finance Support Agreement dated May 23, 2023:
The Exchange: Bidco transferred KES 102,437,500 to BNB.
The Promise: BNB committed to convert the funds into USD 745,000 at an exchange rate of 137.50 and remit the full amount to Bidco’s bank account the following day.
The Pitch: BNB claimed to possess a proprietary, digitized method for sourcing dollars outside traditional banking corridors—a trade secret they promised could bypass the banking bottleneck.
The Personal Element: Why Vimal Shah Transacted
Why did a seasoned corporate leader hand over KES 102 million to an intermediary firm?
In testimony before the tribunal, Dr. Vimal Shah made it clear that the transaction rested entirely on his long-standing relationship with Nik Nesbitt, whom he had known for nearly two decades:
“I did not know who this Bulent is. I don’t even trust him, I don’t even know him. Without the trust [in Nesbitt], I would not have given this sort of money to a Mr. Bulent.”
Despite Nesbitt not being a formal signatory on the final contract or listed as an active director at the time, his presence and personal assurances served as the primary bridge of trust. Without Nesbitt’s involvement, the deal would never have taken place.
What Went Wrong: Siphoned Funds and Fraud Allegations
The promised USD 745,000 was not delivered on May 24, 2023. BNB eventually remitted USD 300,000 in two partial installments, leaving an unpaid balance of USD 445,000.
┌─────────────────────────────────────────────────────────────┐
│ THE $745,000 FOREX FLOW │
│ │
│ [Bidco Africa] ──( KES 102.4M )──> [Bee 'N Bee (KE)] │
│ │ │
│ ( KES Sent ) │
│ ▼ │
│ [Bidco Africa] <──( USD 300k )─── [Pershing VC Group] │
│ │ (Defaulted & │
│ Missing $445k Alleged Fraud) │
└─────────────────────────────────────────────────────────────┘
During the arbitration proceedings before Sole Arbitrator Njeri Kariuki, the mechanics of the deal were exposed:
Unregulated Arbitrage: BNB did not hold dollar reserves itself. Instead, BNB acted as a broker and transferred Bidco’s funds to an unvetted third-party vendor, Pershing VC Group Limited.
The Default: Pershing promised to supply the dollars but defaulted, offering various excuses before absconding with the funds. BNB subsequently lodged a criminal complaint with the Banking Fraud Investigations Unit (BFIU).
The Defense: Facing a claim for breach of contract, BNB argued frustration and force majeure—claiming they were victims of an unforeseen third-party fraud that rendered performance impossible.
The Ruling: Privity, De Facto Agency, and Accountability
Arbitrator Njeri Kariuki rejected BNB’s legal arguments:
Privity of Contract: Bidco was not a party to BNB’s agreement with Pershing. A third party’s default does not relieve a primary contractor of its obligations.
No Frustration: Commercial hardship or being defrauded by one’s own vendor does not constitute legal frustration of a contract.
De Facto Agency: The tribunal held that while Nik Nesbitt was not a formal shareholder or signatory on paper, he acted as a de facto agent/representative whose active involvement induced Bidco to enter into the transaction.
The Award Directives:
Principal Balance: BNB ordered to pay Bidco USD 445,000.
Default Interest: 3% monthly interest on USD 445,000 backdated to May 24, 2023, until paid in full.
Costs: BNB ordered to cover Bidco’s legal costs and the Tribunal fees of KES 1,392,500.
Key Takeaways for the Market
Macro Bottlenecks Drive Liquidity Risks: Severe forex shortages can push even well-established firms toward alternative, over-the-counter liquidity providers.
Personal Trust Is Not Corporate Governance: High-level social capital and long-standing personal relationships cannot replace independent due diligence, escrow arrangements, and formal background checks.
“Digitized Forex” Rails Carry Third-Party Counterparty Risk: Promised off-market exchange rates utilizing digital assets often rely on underlying netwo
Beyond Bidco: A Multi-Million Dollar Corporate Dragnet
Newly surfaced official documents from the Banking Fraud Investigations Department (BFID) reveal that Bidco Africa was not the sole corporate giant caught in this parallel forex web. The police memo—submitted to the Central Bank of Kenya’s Director of Bank Supervision—exposes a much wider scheme involving several prominent blue-chip firms across the region desperate for foreign exchange during the 2023 greenback crunch.
The investigative filings outline the broader scope of funds credited to Bee ‘N Bee (KE) Limited (BNB) by companies seeking off-market forex solutions:
Bidco Kenya Limited: KES 102,437,500
Car & General Tanzania: KES 175,000,000
Tiles & Carpet Center (Mombasa Road): KES 45,000,000
Together, these transactions represent over KES 322 million funnelled through BNB and its related entity, BNX Partners.
┌─────────────────────────────────────────────────────────────────┐
│ BFID INVESTIGATION: CORPORATE FUNDS FLOW │
│ │
│ [ Bidco Africa ] [ Car & General ] [ Tiles & Carpet ]│
│ ( KES 102.4M ) ( KES 175M ) ( KES 45M ) │
│ │ │ │ │
│ └──────────────────────┼─────────────────────┘ │
│ ▼ │
│ [ Bee 'N Bee / BNX Partners ] │
│ │ │
│ ┌────────────────────────┼────────────────────────┐ │
│ ▼ ▼ ▼ │
│ [ Pershing VC Group ] [ Shayans Jewelry ] [ Trelisa Holdings ]│
│ ( KES 102.4M ) ( KES 14.4M ) ( KES 45M ) │
└─────────────────────────────────────────────────────────────┘
Shared Ownership and the Unlicensed Remittance Web
The BFID documents explicitly connect the corporate structure of BNB directly to Nicholas Alexander Nesbitt. According to official registration details in the memo, BNB was incorporated on January 5, 2022, with three equal directors and shareholders holding a 33.3% stake each:
Mehmet Bulent Boytorun (British)
Benjamin Joseph Mann (British)
Nicholas Alexander Nesbitt (Kenyan)
Furthermore, the police report notes that BNB is tied by common ownership to BNX Partners (co-owned by Boytorun and Nesbitt) and CLAMANTIS (solely owned by Nesbitt).
Siphoned Funds and Regulatory Offenses
The investigation details how BNB and BNX took in local currency from corporate clients while transferring funds out to various third-party accounts—including Pershing VC Group (Credit Bank), Shayans Jewelry & Watches (Equity Bank), and Trelisa Holdings / Trevor Mwendwa (National Bank)—under the premise of sourcing foreign currency.
Critically, the BFID memo recommends prosecution for statutory offenses under the Penal Code and Central Bank regulations, specifically citing:
Stealing by Directors (Section 282 of the Penal Code)
Operating a Money Remittance Business Without a License (Regulation 4 read with Regulation 43(1)(a) of the Money Remittance Regulations, 2013 under Cap 491 Laws of Kenya)
The findings confirm that what initially appeared as an isolated contractual dispute between Bidco and BNB was in fact part of an unlicensed, multi-million dollar remittance network operating across East Africa’s corporate sector.
About Boardlot Africa Research
Boardlot Africa is a premier financial intelligence and corporate governance publication dedicated to unpacking the mechanics of capital, market strategies, and structural shifts across East Africa’s corporate landscape. By bridging the gap between raw economic data and actionable market intelligence, we deliver deep-dive research, independent corporate analysis, and policy insights designed for institutional investors, boardrooms, and sharp market observers.
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