Why foreigners are losing millions in gold scandals

Despite the fact that Kenya does not produce much gold, the government’s concerted efforts to curb the vice  and reports in the media, foreigners are still losing millions of dollars to gold scammers.

In the last five days, the Directorate of Criminal Investigations (DCI) has arrested six suspects for defrauding foreigners.

Alaska Express Freight Group Ltd, located along Kirichwa Road in Kilimani, has been identified by at least two foreign victims in these frauds.

A report by an investigative agency indicates that most suspects are West Africans who have stayed in the country for long. It adds that the ‘old known’ gold fraudsters have become so sophisticated that it has become very difficult linking them to these frauds.

At least seven lawyers have also been reported to be involved in these fraudulent transactions where they are said to dupe and assure the foreigners that the deals are above board.

Yesterday, detectives from the DCI’s Operation Support Unit (OSU) arrested a Cameroonian national, Francis Talla Oufa, aka Allain, said to be the mastermind behind a sophisticated fake gold scheme that swindled a Canadian investor of $618,000 (about Sh80 million.

“In November 2024, while still in Canada, the victim was drawn into an enticing deal involving the purchase of 250 kilograms of gold. Lured by the promise of hefty returns, he traveled to Kenya in April 2025 to seal the deal,” the DCI said.

High-end offices

Upon arrival, he was ushered into plush, high-end offices by an alleged business partner, an elaborate front designed to project the illusion of a thriving, legitimate gold enterprise.

The victim was then introduced to a network of well-rehearsed con artists, and convinced of their credibility, he paid the $618,000.

The matter was reported to the police and investigations launched before the detectives, through forensic leads, trailed and arrested the suspect.

Following a search in his Dagoretti residence, detectives recovered gold transaction-related documents and seals, a staff card for Sunshine Minerals Ltd bearing the suspect’s name with the designation “Engineer Mining”, two laptops, three mobile phones and other items linked to the scheme.

In another case on Monday, OSU detectives also arrested four suspects accused of perpetrating elaborate gold scams that have robbed unsuspecting victims of millions of shillings.

Patroba Odhiambo Tobias, Isaac Forkay Sleyon, Omong Ekoume Louis and Wadja Bangsi Tang, were arrested at their residence along Whispers Avenue in Gigiri.

“A thorough search of the premises uncovered a trove of incriminating evidence, including a gold smelting machine, an array of rubber stamps bearing the names of companies such as Alaska Express Freight Group Ltd, Longcrane Logistics Limited, and Kakan Traders and Company, numerous plastic seals,” the DCI said.

Also recovered were a weighing machine, and a cache of documents bearing stamp impressions from the East African Community, among other items.

“Preliminary investigations have revealed that Alaska Express Freight Group Ltd has also been linked to a recent complaint involving two Canadian nationals who were recently defrauded of $37,500,” the DCI added.

According to the report, the lawyers –two based within the CBD and three others based in Westlands, Kilimani and Upper Hill –are said to perpetuate gold scamming by, among other things, opening escrow accounts where once payment is made the money is immediately withdrawn.

The DCI has also said Kenya is ranked position 16 globally when it comes to organized crimes including money laundering and ‘wash wash’ businesses where unsuspecting foreigners have lost billions of shillings.

When he visited the country in June last year, the former Federal Bureau of Investigations (FBI) director, Christopher Wray, said it was important for businesspeople to conduct a good background check of the people they are dealing with, and be conversant with the laws and regulations that guide the type of business they come to conduct.

Wash wash business

“It is also a fact that the wash wash business has become one of the most prevalent transnational crimes, more often than not being orchestrated by non-Kenyans in the initial stages,” Wray said.

According to the DCI, Kenya, and most specifically Nairobi, comes into play due to its strategic placement as a key transit route for gold from Congo and other African countries to the United Arab Emirates and the rest of the world.

Detectives have said the lawyers should be held criminally culpable if they knowingly dupe such buyers during the transactions.

In August 2023, the Law Society of Kenya (LSK) agreed to report suspicious transactions by their clients to the Financial Reporting Centre (FRC), becoming a reporting entity.

Section 2(c) and section 14 (b) of the Proceeds of Crime and Anti-Money Laundering Act (POCAMLA) make the advocates and their employees, including accountants, clerks and cleaners, reporting agents of the FRC.

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