KAMAU appeared in a market at Karatina and announced to the villagers that he would buy monkeys for 20,000/= each. The villagers seeing that there were alot of monkeys around, they went out to the forest and started catching them. The man bought alot of them at 20,000/- and as supply started to diminish, the villagers stopped. He again announced that he would now buy them at 30,000/- This motivated them and they started catching the monkeys again.
Soon the supply diminished even further and the people went back to their farms. The offer increased to 40,000/- each and the number of monkeys became even smaller making it harder to even see a monkey, let alone catching it!
The man now announced that he would buy monkeys at 100,000/-
However, since he had traveled to Nairobi on some business, he let his assistant buy on his behalf. In the absence of the man, the assistant told the villagers. “Look at all these monkeys in the cages that the man has bought from you. I will sell them to you at 80,000/- and when the man returns from the city, you can sell them to him at 100,000/- each.” The villagers rounded up all their savings and bought all the monkeys.
Then they never saw the man or his assistant again. Only monkeys were available everywhere! That’s how the stock market, quail farming and pyramid schemes work.