Kenya’s Directorate of Criminal Investigations (DCI) has arrested over 31 suspects involved in an elaborate scam targeting foreign investors.
The operation, conducted across Nairobi’s affluent areas of Runda, Ridgeways, and Industrial Area, followed complaints from two Dubai-based businessmen who lost USD 39,900 (approximately Sh5.1 million) to the fraudsters. The sophisticated scheme unraveled when the Dubai investors, who had been enticed to purchase 35 kilograms of gold through three separate transactions, became suspicious after their ordered shipments repeatedly failed to materialize. The suspects had meticulously crafted an illusion of legitimacy, operating from an office decorated with gold-adorned walls, golden beverage jars, and official-looking flags.
During the raid, DCI officers seized substantial evidence including four vehicles, metal boxes containing counterfeit gold nuggets and bars, radio communication equipment, and an array of forged government documents. The suspects had also equipped themselves with counterfeit stamps, authorization certificates from various government ministries, branded reflector jackets, and flags bearing Kenyan and East African emblems. The investigation identifies Nashon Otieno Angudha as the alleged kingpin of the operation. Angudha, already facing two active court cases, stands accused of conspiracy to defraud under Section 317 of the Penal Code.
One of his pending cases escalated to include robbery with violence charges following an incident involving assault and sexual violence perpetrated by his associates. The syndicate’s longevity appears to have been sustained through powerful connections within government circles which previously helped shield them from law enforcement action. However, the DCI’s Operations Support Unit has now successfully penetrated these defenses. In response to this incident, the DCI has emphasized the crucial importance of proper due diligence in gold transactions.
They strongly advise potential buyers to work directly with embassies, police authorities, or the Ministry of Mining to verify the legitimacy of gold dealers and avoid falling victim to similar schemes. The seized evidence has been properly documented and secured at a police exhibit store, as the DCI continues its broader campaign against fraud networks operating in Nairobi and beyond.
