DCI nabs man in Ksh29M gold scam targeting US investor
By William Muthama, August 15, 2025Detectives from the Directorate of Criminal Investigations (DCI) have arrested a person of interest linked to an elaborate gold scam that defrauded an American investor of Ksh29 million (USD 225,968.64).
The arrest was announced by the DCI on Friday, August 15, 2025, in a statement posted on X.
“Detectives from the Operations Support Unit have today arrested a key suspect in a gold scam that swindled a US investor of over KSh29 million,” the DCI said.
Investigations reveal the incident dates back to April 2024, when the investor travelled to Kenya to finalise the purchase of 3,370 kilograms of gold.
Upon arrival, he was taken to an office in Nairobi’s Lavington area, where he signed a Sales and Purchase Agreement.
To make the deal appear legitimate, the investor was shown a smelting process purportedly involving the gold he was buying.
Payment and disappearance
Later that month, he was introduced to an insurance broker tasked with covering the gold during transit. An addendum was added to the contract to include insurance charges, and an invoice was issued.
On April 29, 2024, the investor wired Ksh29.18 million to a bank account linked to the broker. The gold never arrived, and all attempts to reach the sellers failed.
Arrest and caution to investors
The DCI said the person of interest was arrested in a coordinated operation and is a signatory to the bank account that received the funds.
“The suspect is in custody and will be arraigned in court on Monday, August 18, 2025,” the statement added.
The investigative agency has urged both local and foreign investors to remain vigilant when engaging in gold transactions in Kenya, warning that fraudsters often use elaborate setups to appear credible.
The arrest comes a day after a duo was nabbed in another gold scam. The case traces back to September 2024, when two investors from Dubai lodged a complaint. Lured by the promise of a lucrative deal to purchase 35 kilograms of gold, the investors flew to Kenya after days of negotiations.
On arrival at JKIA, they were chauffeured to a plush Kilimani hotel and introduced to an elaborate network of accomplices, some posing as KRA Customs officers, Ministry of Mining officials, and even licensed private jet operators.
Before they realised they were being conned, the scammers had already fleeced them of Ksh7 million (USD 54,300).