Detectives have arrested two individuals suspected of orchestrating a massive Ksh.720 million gold fraud scheme that targeted a foreign investor in Nairobi. The suspects, identified as Michael Otieno Onyango and Andrew Clifford Otieno, are accused of luring an American businesswoman into a fake gold deal involving 70 kilograms of purported gold bars.
Investigations reveal that the two fraudsters approached the investor with a promise of delivering the consignment after full payment. However, the cautious businesswoman requested an official test of the gold through the Ministry of Mining before completing the transaction. The suspects initially agreed to the verification process but failed to appear for the scheduled testing, raising her suspicions.
In an attempt to salvage the deal, a second meeting was arranged. The investor was picked up from Yaya Centre in Kilimani by a man posing as an associate of the traders. Pretending to take her for a casual coffee meeting, he instead drove her to Rose Villa Estate, where the two main suspects were waiting. Once inside, the fraudsters tried to convince her to finalise the transaction without the verification process.
According to police reports, the victim’s persistent refusal to proceed with the unverified deal unsettled the suspects, who abruptly ended the meeting and attempted to flee the scene. Detectives who had been monitoring the situation swiftly launched a chase and intercepted the suspects before they could escape.
The two men were taken back to the Rose Villa Estate premises, where a search was conducted. During the operation, police recovered two smelting machines and nineteen smelting moulds believed to have been used in the illegal operation. The items were seized as evidence to aid in the prosecution of the case.
Authorities say the arrests mark significant progress in the ongoing crackdown on sophisticated gold fraud networks operating in the city. Kenya has in recent years witnessed a surge in fake gold scams targeting both local and international investors, with criminals posing as licensed dealers.
The suspects are currently in custody and will be arraigned in court to face charges related to fraud and obtaining money by false pretences. Detectives have also launched investigations to identify other accomplices and determine whether the group is linked to similar scams reported in the region.
