Detectives Arrest Two in Sh720 Million Gold Scam Targeting American Businesswoman

Detectives have arrested two men linked to a Sh720 million ($5.6 million) gold scam that targeted an American businesswoman in Nairobi. The suspects — identified as Michael Otieno Onyango and Andrew Clifford Otieno — were nabbed following a sting operation by officers from the Directorate of Criminal Investigations (DCI).

According to a statement released by the DCI on Wednesday, the two had lured the businesswoman into a fake deal involving 70 kilograms of gold. The suspects presented the deal as a legitimate business opportunity, but the woman grew suspicious and insisted that the gold be verified by the Ministry of Mining before making any payment.

The scammers initially agreed to her request but later failed to turn up for the scheduled testing — raising further red flags.

Still playing along, the woman agreed to a second meeting. She was picked up from Yaya Centre by one of the suspects’ associates, who pretended they were going out for coffee. Instead, she was driven to Rose Villa Estate, where the two suspects were waiting to finalize the fake deal.

However, as negotiations started, the woman refused to proceed without verification. Detecting her caution, the suspects abruptly fled the scene in a blue Mazda CX-7.

“But their escape was short-lived. Detectives, hot on their trail, swiftly intercepted the vehicle and apprehended both occupants,” DCI said in its statement.

The two were later taken back to House No. 27 at Rose Villa Estate, where detectives conducted a search. During the raid, police recovered two smelting machines and nineteen smelting moulds, believed to have been used in the fraudulent operation.

Both suspects are in police custody and are being processed for arraignment in court.