Complex sentence: The Tokeloshe is feared in rural areas of South Africa inhabited by the Zulu's, and is in fact, so feared that villagers who witness the creature, refuse to admit that they ever saw it, (through fear that the Tokeloshe will seek retribution).
Split into simpler sentences: The Tokeloshe is feared in rural areas of South Africa inhabited by the Zulu's. In fact, the Tokeloshe is so feared that villagers who witness the creature refuses to admit that they ever saw the creature, (through fear that the creature will seek retribution).