Detectives have arrested a key suspect linked to a multi-million-shilling gold scam that defrauded an American investor of Ksh29 million. The sophisticated scheme, which dates back to April 2024, involved fake contracts, staged demonstrations, and fraudulent financial transactions.
According to investigators, the foreign investor had travelled to Kenya to finalize the purchase of 3,370 kilograms of gold. Upon his arrival, he was received by individuals posing as legitimate dealers and escorted to an office in Nairobi’s upscale Lavington area. To convince him of the deal’s authenticity, he was made to sign a Sales and Purchase Agreement and even witnessed a purported gold smelting process.
The plot thickened when the investor was introduced to a supposed insurance broker tasked with covering the gold during transit. An addendum was added to the contract, requiring him to pay insurance fees. Shortly after, an invoice was issued for the charges. On April 29, 2024, the investor wired Ksh29.18 million to a bank account believed to be linked to the broker. However, once the funds cleared, the promised gold consignment never materialized. All attempts to reach the sellers failed, confirming the investor had fallen victim to a well-coordinated fraud.
Following months of investigations, detectives managed to track down one of the individuals connected to the account that received the funds. The suspect, identified as a signatory to the bank account, was apprehended in a coordinated operation and is currently in custody. Authorities confirmed that he will be arraigned in court on Monday, August 18, 2025.
This arrest comes just a day after another scam was uncovered involving two investors from Dubai, who were lured into a fake gold deal worth Ksh7 million. In that case, the fraudsters went to great lengths to appear credible, even deploying individuals posing as customs officers, mining officials, and private jet operators.
Authorities have since urged both local and international investors to exercise caution when engaging in gold transactions within Kenya. They warn that fraudsters often create elaborate networks, complete with convincing paperwork and staged operations, to lure unsuspecting buyers. Investors are advised to seek proper verification through official government channels before committing funds to such deals.
The recent arrest highlights ongoing efforts to dismantle gold scam cartels that continue to tarnish Kenya’s reputation as a regional trade hub.
