Detectives from the Directorate of Criminal Investigations (DCI) have busted a high-profile gold scam in Nairobi, arresting two suspects accused of defrauding a foreign investor of USD 5.6 million (approximately KSh 860 million) in a fake gold deal.
According to a statement from the DCI, the suspects — identified as Michael Otieno Onyango and Andrew Clifford Otieno — were nabbed after attempting to swindle an American businesswoman through a carefully orchestrated scheme that promised her 70 kilograms of gold.
The con artists reportedly presented themselves as legitimate dealers and convinced the investor that the gold was genuine and ready for export. However, the woman insisted on verifying the authenticity of the gold through testing by the Ministry of Mining before making any payments — a move that quickly exposed the fraudulent operation.
DCI reports indicate that while the scammers initially agreed to the verification, they failed to show up for the scheduled gold testing, prompting the businesswoman to alert authorities.
Undeterred, the woman played along to help investigators gather more evidence. A second meeting was arranged at Rose Villa Estate in Nairobi, after she was picked up from Yaya Centre by one of the suspects’ associates under the guise of having a coffee meeting.
Once at the estate, the suspects attempted to pressure her into finalising the fake deal. However, their plan crumbled when they realised something was wrong. In a panic, they fled the scene in a blue Mazda CX-7, registration number KDP 336R.
Their escape was short-lived. DCI detectives, who had been tracking the operation closely, pursued and intercepted the vehicle, arresting both suspects.
A search conducted at House No. 27, Rose Villa Estate led to the recovery of crucial evidence — including two gold smelting machines and nineteen smelting moulds — items believed to have been used to convince victims of the legitimacy of their fake operations.
The DCI has in recent years intensified its crackdown on fake gold rackets, many of which have tarnished Kenya’s reputation in international trade circles. Authorities have urged foreigners and local investors to verify the authenticity of dealers through the Ministry of Mining and the DCI’s Serious Crimes Unit before engaging in any precious metal transactions.
The two suspects are expected to face multiple charges, including conspiracy to defraud and obtaining money by false pretences, once arraigned in court.
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