NAIROBI, Kenya — The Directorate of Criminal Investigations (DCI) has ramped up its war on international gold scam syndicates that have been bleeding unsuspecting foreign investors of hundreds of thousands of dollars. In a coordinated crackdown, detectives have arrested a prominent Nairobi advocate and several high-profile suspects linked to elaborate fake gold schemes that span across continents.
The latest suspect in custody is Michael Otieno Owano, an advocate of the High Court of Kenya and proprietor of Otieno M.O. Law Advocates. Detectives from the Operations Support Unit (OSU) accuse Owano of playing a key role in a multi-million-dollar scam that defrauded a Canadian investor of USD 618,000 (approximately KSh 80 million) in a meticulously planned fake gold export deal.
How the $618K Scam Was Orchestrated
According to DCI reports, the Canadian victim was promised 250 kilograms of pure gold for export to Dubai. The deal was presented as legitimate and high-value, involving transportation aboard a private jet to give the illusion of exclusivity and security.
On April 15, 2025, a Proforma Invoice worth USD 318,400 was issued by a company identified as EAI Logistics. Trusting the authenticity of the transaction, the investor wired the funds directly to Owano’s law firm account, believing it to be an escrow arrangement for the gold shipment.
However, the scheme did not end there. The victim was later instructed to make an additional payment of USDT 300,000 to a cryptocurrency wallet controlled by the fraudsters. This second payment, they claimed, was necessary to clear “urgent logistical and customs requirements” before the gold could be shipped.
Despite the hefty payments, no gold was ever delivered to the investor. The elaborate promises, luxury arrangements, and legal assurances turned out to be a sophisticated con.
DCI Arrests the Alleged Mastermind
Owano’s arrest came just days after detectives apprehended Francis Talla Ouafo, also known as Allain, a Cameroonian national believed to be the mastermind of the syndicate. Ouafo is accused of running a well-organized network of fraudsters targeting wealthy foreign investors seeking to purchase gold from Africa.
He was arraigned at the Milimani Chief Magistrate’s Court on July 31, 2025, facing multiple charges of conspiracy to defraud and obtaining money by false pretenses. DCI sources say his arrest marked a turning point in dismantling the syndicate’s operations in Kenya and neighboring countries.
Parallel Case: Gabonese Investor Targeted
In a separate but strikingly similar gold scam, DCI detectives are investigating Lupemba Lorenzi Olivier, a Congolese national, accused of conning a Gabonese investor in another fake gold export scheme.
Olivier appeared before the Milimani Law Courts, where detectives successfully secured a seven-day custodial order to conclude their investigations. His case is scheduled for mention on August 13, 2025.
According to investigators, Olivier’s modus operandi mirrors that of the first case: presenting fake documentation, luring the victim to supposed high-profile meetings, and convincing them to deposit large sums into controlled accounts.
The Role of ‘Kevo Sonko’ in the Syndicate
The crackdown also led to the arrest of Kelvin Otieno Onyango, popularly known as Kevo Sonko, alleged to be the director of SwiftTaxis Logistics Ltd. DCI claims Onyango played a crucial role in legitimizing the fraudulent transactions by providing office space where victims were brought in for negotiations and the signing of contracts.
In one instance, the complainant in his case was persuaded to transfer USD 140,000 into an escrow account for gold that never existed. The professional setting, complete with branded company documents and uniformed staff, was allegedly designed to lower the victim’s suspicion.
Inside the World of Kenya’s Gold Scammers
Kenya has, over the past decade, become a hotbed for sophisticated gold scams targeting wealthy investors from across the globe — particularly from Dubai, Europe, Asia, and North America.
These scams typically follow a calculated pattern:
- The Hook — Fraudsters identify and target high-net-worth individuals or companies seeking to buy gold from Africa.
- The Illusion — The victim is flown into Kenya or contacted remotely and introduced to a network of “officials” posing as customs agents, logistics experts, or lawyers.
- The Paper Trail — Fake contracts, invoices, and even export licenses are produced to prove the legitimacy of the deal.
- The Payment — Funds are wired into Kenyan bank accounts or cryptocurrency wallets under the guise of escrow or logistical requirements.
- The Disappearance — Once payments are made, communication is cut, and the syndicate vanishes.
DCI’s Tough Stance
The DCI has vowed to dismantle these transnational crime networks and bring all culprits to justice. The agency has urged foreign investors to conduct thorough due diligence before committing to gold purchases in Kenya.
“This is part of our broader strategy to safeguard Kenya’s reputation and protect investors from organized criminal enterprises,” said a senior detective involved in the operation.
Why Foreign Investors Keep Falling Victim
Experts say that part of the reason these scams succeed is the high global demand for gold coupled with Africa’s reputation as a gold-rich continent. Criminals exploit the desire for high-profit, direct-source deals by offering gold at prices slightly below the international market rate.
For unsuspecting buyers, the promise of quick profits and tax-free exports is too tempting to resist. Unfortunately, these “too good to be true” deals often end in massive financial losses.
High-Profile Victims in the Past
This is not the first time gold scammers have made international headlines in Kenya. Over the years, several diplomats, businessmen, and celebrities have reportedly fallen prey to similar schemes:
- In 2019, a UAE royal was allegedly conned in a KSh 400 million gold scam.
- In 2021, a European businessman lost over USD 1 million in a Nairobi-based fake export deal.
- In 2023, West African traders raised alarm over fake Kenyan gold dealers operating in Nairobi’s high-end offices.
Kenya’s Legal Framework on Gold Trade
Gold trading in Kenya is regulated under the Mining Act, 2016, and licensed dealers must meet stringent requirements, including holding valid export permits. However, scammers exploit legal loopholes and forge documents to create an appearance of legitimacy.
Law enforcement agencies, including the DCI and the Kenya Revenue Authority (KRA), have intensified vetting processes for exporters, but criminals adapt quickly by shifting tactics, using cryptocurrency payments, and setting up shell companies.
What Happens Next for the Suspects
All suspects arrested in the ongoing crackdown remain in custody as detectives finalize their investigations. Prosecutors are expected to press multiple charges, including:
- Conspiracy to defraud
- Obtaining money by false pretenses
- Forgery
- Money laundering
If found guilty, they could face lengthy prison sentences, hefty fines, and asset forfeiture under Kenya’s anti-money laundering laws.
How to Protect Yourself from Gold Scams
The DCI has issued the following guidelines for investors considering gold purchases from Kenya:
- Verify licenses — Ensure the seller holds a valid export permit from the Ministry of Mining.
- Avoid upfront payments — Use verified escrow services.
- Inspect the goods — Engage independent experts to authenticate gold before shipping.
- Beware of private jets — Criminals use luxury travel as bait.
- Be cautious with cryptocurrency payments — These are harder to trace and recover.
Global Impact of Gold Scams
Gold scams do more than rob individual investors — they tarnish the reputation of legitimate African gold exporters, scare away genuine investors, and lead to increased scrutiny of all transactions from the region.
According to the Interpol Financial Crimes Unit, gold-related fraud accounts for a growing percentage of cross-border scams in Africa, with Kenya, Ghana, and Uganda being the most cited hotspots.
Conclusion: A Clear Warning
The ongoing arrests signal a clear message from the DCI — Kenya will not be a safe haven for gold fraud syndicates. With international cooperation and improved surveillance, authorities hope to root out the criminal networks tarnishing the country’s mining sector.
For now, Michael Otieno Owano, Francis Talla Ouafo, Lupemba Lorenzi Olivier, and Kelvin Otieno Onyango will remain behind bars as investigators work to gather more evidence. Their high-profile arrests could mark the beginning of the end for one of East Africa’s most notorious gold scam.
