Nairobi’s fake gold cartels have once again been exposed after Italian investor Dr. Satninder Singh testified how he lost more than €2 million (Sh342 million) in a fraudulent gold deal.
The Multi-Million Gold Scam
Dr. Singh told Senior Principal Magistrate Robinson Ondieki that he was promised 150 kilograms of gold but instead fell victim to forged documents, staged officials, and false promises.
To make the deal appear legitimate, Singh was shown:
-
A certificate of ownership dated April 9, 2024
-
A mineral export permit dated February 9, 2024, bearing his name and passport number
Believing the documents were genuine, Singh proceeded with the deal.
How the Fraudsters Operated
When Singh arrived at Jomo Kenyatta International Airport (JKIA) for the supposed export, he was told the Kenya Revenue Authority (KRA) had imposed a sudden penalty of USD 1.62 million.
Fraudsters warned him that the gold would be confiscated unless the penalty was paid. To maintain the illusion, Singh was taken to Forodha House where he met a woman posing as a senior customs officer who confirmed the penalty.
This erased his doubts, and he wired €256,000 before making additional transfers totaling more than €2 million.
Each time, new obstacles emerged. At one point, Singh was told about a Congolese court order demanding USD 4.5 million before the gold could be released. The shipment never arrived.
Suspects in Court
Three suspects — Frank David Kateti, Alain Mwadia Nvita Lukusa, and Daniel Otieno Ogot — were later arrested and charged with:
-
Obtaining money by false pretenses
-
Forgery
-
Conspiracy to steal
They have all denied the charges.
Nairobi’s Fake Gold Syndicate Playbook
Experts say Singh’s case follows a well-rehearsed script that has ensnared dozens of foreign investors:
-
Victims are shown fake export permits and certificates
-
They are taken to real government offices where imposters pose as customs officials
-
They are asked for last-minute taxes or penalties
-
Payments are routed through law firms to appear legitimate
A senior DCI officer described the scams as “theatre,” with every fraudster playing a role until the victim realises the performance was staged.
Wider Impact on Kenya’s Reputation
This is not the first time Nairobi has been linked to fake gold scams.
-
In 2019, a scandal involving a Dubai royal triggered diplomatic tension after leaked calls tied the fraud to senior politicians.
-
A 2023 Global Initiative Against Transnational Organised Crime report detailed how syndicates use fake nuggets, counterfeit seals, and even scanners to deceive buyers.
Governance expert John Githongo previously warned that the persistence of such scams reflects a “toxic nexus” between cartels and corrupt insiders.
What’s Next?
Despite crackdowns, the syndicates often resurface under new names, leaving Kenya’s credibility as a trusted investment hub at risk.
Dr. Singh’s testimony has once again highlighted how Nairobi’s gold cartels operate with impunity, raising fresh questions about enforcement, accountability, and Kenya’s global image.