A key suspect has been arrested in connection with a fraudulent gold syndicate that defrauded a foreign investor of Sh34 million. Detectives from the Directorate of Criminal Investigations (DCI) apprehended the individual, marking a significant step in the probe that has been ongoing since 2024.
The syndicate is accused of luring a foreign investor with fake gold purchase contracts for over 1,080 kilograms, backed by false promises of secure delivery, guaranteed collateral, and forged legal documents. The investor transferred $265,200 in the belief that the deal was legitimate. However, investigations revealed that the “gold” was merely a mixture of copper, zinc, and tin.
This arrest follows the earlier capture and arraignment of another suspect on December 7, 2024, for the same scheme. Authorities have confirmed that the current suspect is undergoing police processing and is set to be arraigned. Meanwhile, a manhunt is underway for two additional suspects believed to be part of the same criminal enterprise.
This case adds to a growing list of fake gold fraud incidents reported in Kenya this year. In January, detectives arrested 14 suspects in a separate scam involving a $1.35 million fraud targeting an American investor. That operation culminated in arrests along Chalbi Drive in Lavington, Nairobi, after weeks of forensic surveillance and intelligence gathering.
In February, a suspect was charged at Jomo Kenyatta International Airport in a case involving a $120,000 fraud targeting Romanian and Swiss businessmen. April saw another crackdown in Spring Valley, Nairobi, where 11 suspects were arrested, and 305 kilograms of fake gold, a weighing machine, and a gold tester were seized. The fraud in that case involved losses of at least Sh70 million.
In May, four additional suspects were arrested during a police raid in Runda. They were implicated in conning a foreign national out of Sh25 million through yet another fake gold scheme.
Authorities continue to warn foreign investors to exercise caution when dealing with gold traders in Kenya, especially in cases where documentation and product verification are lacking. Detectives say they are intensifying efforts to dismantle the criminal networks orchestrating these sophisticated scams.
