Fake Gold Merchant Arrested in Nairobi After Defrauding Pakistani National

 

A man suspected to be at the center of a high-level gold fraud syndicate has been arrested in a joint operation conducted by detectives from the Directorate of Criminal Investigations (DCI) and officers from the Kenya Police Service (KPS), Lang’ata Sub-County.

The suspect, identified as Stephen Magero, was apprehended at Sultan Suites, Ngong View Estate, following a detailed investigation into a complaint lodged by a Pakistani national who claimed he was defrauded of USD 34,800 in a fake gold deal.

According to police reports, the suspect had presented the foreign investor with 500 grams of what appeared to be gold. After receiving the cash payment, the victim later discovered—following professional testing—that the metal was counterfeit, leading him to report the incident at Karen Police Station.

A follow-up search at the suspect's premises yielded damning evidence. Among the items recovered were:

• Ten (10) bars of suspected fake gold
• Business cards bearing the alias John Mbalaka
• A MacBook Pro laptop
• Smelting machines and related equipment
• A mining certificate under the name Chawanda Minerals
• A weighing scale
• Two plastic boxes filled with sand
• Several assorted files and documents linked to gold trading activities

Authorities believe the suspect may be part of a wider network of fraudsters targeting unsuspecting foreign investors through elaborate gold scams—a crime that has significantly tarnished Kenya's reputation in the international mineral trade market.

The suspect is currently in police custody and is expected to be arraigned in court as investigations continue.

The DCI has urged the public, especially international investors, to verify the authenticity of mineral dealers with the Ministry of Mining and other relevant government agencies before engaging in any transactions.