Detectives from the Directorate of Criminal Investigations (DCI) have arrested a Nairobi-based lawyer over allegations that he fraudulently diverted KSh49.4 million entrusted to him for the purchase of a parcel of land in Nairobi.
The suspect, identified by the DCI as Ally Ahmed Ally, was arrested by detectives from the DCI Nairobi Regional Office within Kilimani Sub-County and is under investigation for the offence of stealing by agent, contrary to Section 283(b) of the Penal Code.
According to investigators, the lawyer, who practises under the firm Rasheed Rage and Nassir Advocates, is accused of unlawfully converting money that had been entrusted to him to facilitate a land transaction.
Money allegedly diverted
The DCI said investigations established that the complainant entrusted the advocate with KSh49,400,500 on various dates between November 16, 2023, and January 3, 2024 to facilitate the purchase of a parcel of land in Nairobi.
However, detectives allege that instead of applying the funds to complete the intended transaction, the suspect diverted the money and converted it to his own use.
“The complainant entrusted the suspect with Sh49,400,500 on diverse dates between 16th November 2023 and 3rd January 2024 to facilitate the purchase of the land. However, instead of applying the funds for the intended transaction, the suspect allegedly diverted the money and unlawfully converted it to his own use,” the DCI said in a statement.
Awaiting court appearance
Police confirmed that the advocate is currently in lawful custody as investigators complete processing before arraigning him in court.
Authorities did not indicate whether any of the money had been recovered or whether additional suspects were being pursued in connection with the alleged scheme.
The DCI said investigations remain ongoing.
Growing scrutiny of property transactions
The arrest comes amid increased scrutiny of fraudulent land transactions and alleged misuse of client funds within Kenya’s property sector.
Land fraud remains one of the most common forms of economic crime investigated by the DCI, with disputes often involving forged ownership documents, double sales, fraudulent transfers and the alleged misappropriation of purchase funds by individuals entrusted to facilitate transactions.
Legal experts have consistently advised buyers to carry out comprehensive due diligence before purchasing land, including verifying ownership records at the Ministry of Lands, confirming the authenticity of title deeds and using reputable advocates to handle conveyancing transactions.
Lawyers bound by fiduciary duty
Under Kenyan law, advocates who receive money on behalf of clients are required to hold those funds in trust and apply them strictly for the purpose for which they were received.
Failure to properly account for client funds may expose an advocate to both criminal prosecution and disciplinary proceedings before the Advocates Disciplinary Tribunal, depending on the circumstances of the case.
The latest arrest is expected to renew debate over accountability in high-value property transactions as investigators continue pursuing economic crimes involving land purchases and alleged breaches of professional trust.
The DCI has urged members of the public with information relating to economic crimes or fraud to report the matter through the nearest police station or anonymously via its toll-free hotline and WhatsApp reporting channels.