A major fake gold syndicate has been busted in Nairobi, with two key suspects arrested over a sophisticated scheme that allegedly conned a Swiss investor more than Sh18 million in a deal that never existed.
The suspects, Seth Steve Okute and Kelvin Otieno Onyango, were picked up by detectives following a complaint filed by Swiss national Stephane Pierre Harder through his agent Ulrich Kenney. Investigators say the duo is part of a well-organised network that has been targeting foreign investors with fake high-value gold deals.
According to findings, the victim was lured into the transaction on April 14, 2025, after being promised the purchase and shipment of 20 kilograms of gold to Dubai. The deal appeared legitimate on the surface, complete with paperwork and assurances, but it quickly turned into a costly trap. The investor was instructed to pay USD 140,000, equivalent to over Sh18 million, in what was described as logistics and clearance fees.
The money was allegedly channelled through a law firm, Kandiki & Advocates, giving the deal an appearance of credibility. But once the funds were transferred, the gold never arrived. The shipment never existed.
Detectives say the scheme followed a familiar pattern seen in many of Kenya’s fake gold scams, where fraudsters use elaborate documentation, legal fronts, and staged processes to convince victims that they are engaging in legitimate trade. By the time the truth emerges, the money is gone.
The Office of the Director of Public Prosecutions has since approved multiple charges against the suspects, including conspiracy to defraud and obtaining money by false pretences. Authorities believe the two were not acting alone.
Two more individuals, Benold Okoth and Esther Bituku Kandiki, have also been linked to the scheme. Kandiki is reportedly still at large, with detectives intensifying efforts to track her down.
Investigators have further revealed that Onyango, also known as “Sonko,” has previously faced similar fraud-related charges, raising fresh concerns about repeat offenders operating within these networks and slipping through the cracks of the justice system.
The case adds to a growing list of fake gold scams that continue to tarnish Kenya’s reputation internationally. Foreign investors, often attracted by promises of lucrative deals, are repeatedly falling victim to well-coordinated fraud rings that exploit legal loopholes and weak enforcement.
Authorities say investigations are ongoing, with efforts underway to recover the stolen funds and dismantle the wider network behind the operation.
For now, the arrests mark a significant breakthrough.
But the bigger question remains.
How many more syndicates are still out there, running the same script, and waiting for the next victim.
