At least 31 individuals connected to a fraudulent gold scam syndicate were arrested on Tuesday during a crackdown by detectives in the Nairobi areas of Runda, Ridgeways, and Industrial Area.
The operation, carried out by the Directorate of Criminal Investigations (DCI), led to the seizure of key evidence, including counterfeit gold, spray paint, and padlocks used to manufacture the fake gold.
The arrests followed an incident in which two foreign nationals were deceived into purchasing 35 kilograms of counterfeit gold, losing more than Sh5 million in the process.
Police confirmed that some of the suspects are repeat offenders with multiple fraud charges pending in court. They are expected to face additional charges related to this latest scam when they are arraigned on Wednesday.
According to investigators from the Operations Support Unit, the foreigners were lured to Kenya on September 4, 2024, by the scammers, who convinced them to buy 35 kilograms of gold through three separate transactions. However, after making payments, the victims were taken on a wild goose chase, and the gold was never delivered.
The suspects operated from an office designed to look legitimate, featuring gold-colored walls, a golden beverage jar, and flags—including the Kenyan and East African Community flags—meant to add an air of credibility to the operation. Among the items recovered was a Subaru vehicle equipped with a siren, which was allegedly used to escort unsuspecting clients from the airport before they were swindled.
Also seized were vital tools such as spray paint and padlocks, which were used to create the fake gold.
The suspects, known to be repeat offenders with ongoing fraud cases, are said to have influential connections within government circles, which have reportedly protected them from previous legal actions. The scammers, posing as legitimate gold dealers, had on various occasions in September 2024 presented coated metals as gold to deceive the two foreign nationals into entering the fraudulent deals. After making several visits to the scammers’ lavish office, the victims began to grow suspicious when the 35 kilograms of gold they had paid for failed to be exported to Dubai as promised, leading them to report the fraud to the DCI.
Investigations have since uncovered that some of the key suspects in the scam, including the alleged mastermind, are notorious figures in the illegal gold trade. One of the suspects, a serial offender with two ongoing court cases, is facing charges of conspiracy to defraud under Section 317 of the Penal Code. Another case against him involves robbery with violence, stemming from an incident in which an Australian man and his Ugandan wife were attacked, robbed, and sexually assaulted by his team.
The arrested suspects are scheduled to appear in court on Wednesday to face fraud charges.
Authorities have issued a warning to foreigners to be cautious of scammers in the gold business and advised them to consult their embassies, the police, or the Ministry of Mining before making any gold-related transactions.
