Nairobi, Kenya – Detectives from the Directorate of Criminal Investigations (DCI) have arrested a suspected fake gold dealer in Nairobi in connection with an international fraud case that left a Pakistani investor swindled out of USD 34,800 (KSh 4.6 million).
The suspect, identified as Stephen Magero, was nabbed at Sultan Suites, Ngong View Estate, during a sting operation involving officers from the DCI and the Kenya Police Service (KPS), Lang’ata Sub-county.
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How the Scam Worked
According to investigators, Magero lured the foreign investor with a promise of supplying 500 grams of gold. Once payment was made in cash, the gold was subjected to tests which later confirmed it was counterfeit.
Realizing he had been duped, the Pakistani national reported the matter at Karen Police Station, prompting detectives to launch a swift manhunt.
What Detectives Recovered
A raid on the suspect’s office uncovered items linked to a suspected gold scam syndicate, including:
10 bars of suspected fake gold
Business cards under the alias John Mbalaka
A MacBook Pro laptop
Smelting machines and related apparatus
A mining certificate registered to Chawanda Minerals
A weighing machine
Plastic boxes filled with sand
Several files and documents tied to gold transactions
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Investigators believe the equipment was being used to stage elaborate scams aimed at foreign investors seeking to buy gold in Kenya.
A Growing Syndicate
This case comes amid increasing reports of fake gold scams in Nairobi, where unsuspecting foreigners are lured with promises of lucrative mineral deals. Authorities have repeatedly warned investors to verify transactions with the Ministry of Mining or consult the DCI Serious Crimes Unit before committing funds.
Security experts say the latest arrest highlights Nairobi’s struggle with sophisticated fraud rings that tarnish Kenya’s reputation as a safe investment hub.
What’s Next
Magero remains in police custody and will be arraigned once investigations are complete. Detectives have hinted at possible more arrests, suggesting that the suspect may be part of a wider cartel.
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