An American businesswoman narrowly escaped losing USD 5.6 million (about KSh 730 million) after exposing a fake gold syndicate in Nairobi.
The Directorate of Criminal Investigations (DCI) said two suspects — Michael Otieno Onyango and Andrew Clifford Otieno — were arrested after a well-coordinated operation that uncovered a smuggling and smelting racket.
The woman was reportedly approached with what seemed to be a legitimate offer to purchase 70 kilograms of gold.
Suspicious of the deal, she requested official testing and verification from the Ministry of Mining before making any payment.
Her caution is said to have frustrated the suspects, who failed to appear for the scheduled testing, prompting her to work closely with detectives to trap them.
DCI reports that during a second meeting arranged under the guise of continuing negotiations, one of the suspects picked her up from Yaya Centre and drove her to Rose Villa Estate.
There, the two attempted to persuade her to finalise the transaction. Detectives had already laid a trap nearby.
When the suspects sensed danger and fled in a blue Mazda CX-Z, registration number KDP 336R, investigators swiftly pursued and arrested them.
A follow-up search at the estate revealed two smelting machines and nineteen smelting moulds, believed to have been used to produce fake gold for unsuspecting buyers.
DCI officials said the incident highlights how organized criminal groups continue to exploit the gold trade to defraud foreign investors.
The agency commended the victim’s vigilance and urged potential investors to conduct background checks and confirm deals through the Ministry of Mining before making payments.
The two suspects are in police custody awaiting arraignment as investigations continue.
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