NAIROBI, Kenya — Bidco Africa Chairperson Vimal Shah has told a court how the company lost about Sh102.4 million in a failed foreign exchange transaction during a dollar shortage in Kenya in 2023.
Shah said Bidco was looking for US dollars to pay for imported raw materials when his longtime friend and business associate, Nicholas (Nik) Nesbitt, offered to help the company access the currency.
He told the court that Bidco had previously conducted two unsuccessful transactions with Nesbitt in March and April 2023.
“Ultimately what he did was, after not being successful, he sent us some dollars for some shillings, and the rest he gave us the shillings back to say, ‘Fine, here’s your shillings back,’ and that was returned to us,” Shah said.
Nesbitt offered to source dollars
According to Shah, Nesbitt approached him again on May 18, 2023, saying he had found a reliable source that could provide the dollars within 24 hours of receiving the Kenyan shillings.
Shah said Nesbitt introduced him to his business associate, Bulent Boytorun, whom he described as a 50-50 partner and cryptocurrency expert.
“He said Bulent Boytorun is the expert on crypto and how to convert foreign currency through stable coin and through cryptocurrencies. And if you give the shillings today, tomorrow your dollars are in, and it’s all legitimate, it’s all okay, and they’re doing it regularly,” Shah told the court.
The proposed arrangement involved using cryptocurrency and stablecoins to facilitate the conversion of the Kenyan shillings into US dollars.
Shah says he trusted Nesbitt
Shah said he agreed to the transaction largely because of his longstanding relationship with Nesbitt.
He told the court that the two had known each other for between 15 and 20 years and had worked together at IBM and through business organisations including the Kenya Private Sector Alliance (KEPSA) and the East African Business Council.
Shah said he did not know Boytorun personally and that his confidence in the transaction came from his trust in Nesbitt.
“I did not know who this Bulent Boytoun is, I don’t even trust him, I don’t even know him. And I knew Nik Nesbitt because I’ve known him for the last 15–20 years since IBM, and of course since our association in KEPSA and East African Business Council,” Shah said.
Bank relationship reinforced confidence
Shah also told the court that his confidence was strengthened after Nesbitt informed him that both parties used Standard Chartered Bank.
He said he contacted a bank official to verify whether Nesbitt and his associates had accounts at the institution.
According to Shah, he was informed that Nesbitt was a customer and that BNB Kenya Limited also maintained an account with the bank.
“Yes, and I trusted him because he’s a friend, not only a friend but also an acquaintance in business,” Shah said.
He emphasised that it was his relationship with Nesbitt, rather than any direct relationship with Boytorun, that persuaded him to proceed.
“We had a full trusting relationship with him, and therefore it was him that I trusted, not anyone else, and that friendship,” Shah told the court.
Bidco expected $745,000
Shah said the parties agreed on an exchange rate of Sh137.50 for every US dollar.
Under the agreement, he said, Bidco was supposed to receive $745,000 in its dollar account on May 24, 2023.
The company needed the funds urgently to purchase imported raw materials, according to Shah.
He said the agreement provided for the entire amount to be deposited in Bidco’s dollar account after the transaction was signed.
“On the 24th nothing arrived, no money was sent to our account,” Shah told the court.
The failure to receive the dollars left Bidco without the funds it had expected to use for its raw-material purchases, Shah said.
Dollar shortage heightened urgency
Shah’s testimony places the transaction against the backdrop of a foreign exchange shortage in Kenya in 2023, when businesses faced challenges accessing US dollars for imports and other international payments.
He said the urgency of securing foreign currency was known to Nesbitt because Bidco needed to make regular payments for raw materials and any disruption could affect its manufacturing operations.
The court is hearing evidence surrounding the disputed transaction.
