A man has been arrested in Nairobi after allegedly defrauding a Pakistani national of Ksh4.5 million in a fraudulent gold deal.
The suspect, identified as Stephen Magero, was apprehended at Sultan Suites, Ngong View Estate, following a joint operation by law enforcement officers. His arrest came after a foreign national reported being duped of USD 34,800 (about Ksh4.5 million) in exchange for what later turned out to be counterfeit gold.
Investigations revealed that the suspect presented the complainant with 500 grams of fake gold and received the payment in cash. When the metal was tested, it was confirmed to be counterfeit, prompting the victim to file a formal complaint.
A search of the suspect’s office uncovered ten bars of suspected fake gold, several business cards under the name “John Mbalaka,” and a MacBook Pro laptop. Authorities also seized smelting machines, a weighing machine, plastic boxes filled with sand, a mining certificate under the name Chawanda Minerals, and assorted documents believed to be linked to the fraudulent activities.
The suspect is currently in custody and will be arraigned in court once investigations are complete.
The case highlights how fake gold scams continue to target unsuspecting investors and foreign nationals in Kenya. Just days before this incident, another complainant testified virtually from Italy, recounting how he was deceived in a separate gold scam involving a purported 150-kilogram consignment.
According to the testimony, the fraudsters presented him with ownership certificates dated April 2024 and an export permit bearing his name and passport details. At Jomo Kenyatta International Airport, he was instructed to check in and wait for the consignment, only for the men to later claim that the Kenya Revenue Authority had imposed a penalty of USD 1.62 million—about 20 percent of the cargo’s value. He was told the gold would be released only after the fee was paid.
Despite his doubts, he was persuaded by one of the accused to proceed, but the deal never materialized.
These incidents underscore the persistence of elaborate gold scams in Nairobi, often involving forged documents, counterfeit minerals, and high-pressure tactics aimed at extorting large sums of money from victims.
