A dramatic twist has emerged in the Alphonce Collins Odowo Osewe gold fraud case, after the Nairobi-based advocate’s hospitalization disrupted court proceedings in what prosecutors describe as a “high-stakes economic crime.”
The development occurred at the Milimani Law Courts, where the court was expected to proceed with plea taking in a case involving allegations of false pretenses, money laundering, and obtaining millions through a fake gold sale scheme.
Court Session Disrupted by Advocate’s Illness
Presiding magistrate Selesa Okore directed that the ailing advocate, Alphonce Collins Odowo Osewe, must present himself for plea taking without further delay, despite reports of his ongoing treatment at Aga Khan Hospital.
Osewe’s defense team had requested a 30-day adjournment, citing medical reasons and the need for overseas treatment for what they termed a “delicate medical procedure.”
However, the prosecution strongly opposed the application, arguing that no verifiable medical records had been provided to substantiate the illness. The state termed the 30-day request “excessive” and an “attempt to stall proceedings.”
“The accused has been attending all previous mentions and is aware of the serious charges he faces. However, the court must balance compassion with the public interest in expeditious justice,” the magistrate observed.
The High-Profile Charges
According to charge sheets filed by the Office of the Director of Public Prosecutions (ODPP), Osewe and his co-accused, Patroba Odhiambo Tobias Allen Ishmael, are facing multiple charges of obtaining money by false pretences contrary to Section 313 of the Penal Code, alongside offences under the Proceeds of Crime and Anti-Money Laundering Act.
The prosecution alleges that between 1st and 9th May 2023, the accused fraudulently obtained USD 260,400 (approximately KSh 35.7 million) from Bernard Shicundu Aete, pretending they could supply 400 kilograms of gold bars — a deal they knew to be fictitious.
In a related count, Advocate Osewe is accused of obtaining KSh 26.1 million from Adeyeye Enitan Ogunwusi, using the same fraudulent gold scheme.
Investigators claim the accused used their professional and social connections to gain trust from victims, promising quick returns through gold exports to international buyers.
Money Laundering and Proceeds of Crime Allegations
The charge sheet further indicates that both accused persons used and acquired the funds while knowing they were proceeds of crime.
The inclusion of money laundering charges marks an escalation in Kenya’s enforcement of financial crime laws. Prosecutors view this case as a demonstration of the government’s tougher stance on illicit financial flows and fraudulent investment operations disguised as legitimate trade.
If convicted, the duo could face lengthy prison terms, asset seizures, and permanent disbarment for the advocate under Law Society of Kenya (LSK) disciplinary procedures.
Defense: “Osewe is Not a Flight Risk”
Defense lawyers told the court that Osewe, being a licensed advocate of the High Court of Kenya with a known practice and address, poses no flight risk.
They emphasized his consistent attendance at all five previous mentions and maintained that his current hospitalization is legitimate and not a ploy to evade justice.
“Our client has cooperated fully with investigators and the court. His medical condition is genuine, and we only seek fair accommodation for his recovery,” the defense counsel argued.
The court, however, maintained its position that Osewe must appear for plea taking the following day, warning that failure to appear could result in revocation of bond.
Prosecution Pushes for Swift Proceedings
The prosecution has vowed to expedite the case, citing the growing number of cross-border gold fraud cases that have tainted Kenya’s financial image internationally.
Prosecutors argue that such scams not only defraud investors but also risk placing the country on international financial watchlists due to increased cases of money laundering.
“The fake gold trade has become a national embarrassment,” said one prosecutor off-record. “It is no longer a local crime — it has global implications.”
The Broader Context: Kenya’s Gold Scam Epidemic
Kenya has, in recent years, witnessed a string of gold-related fraud schemes involving lawyers, businesspeople, and foreign investors. These cases often involve fake export documents, forged customs clearances, and bogus mineral certificates purportedly from government agencies.
The Osewe gold fraud case is now being viewed as a litmus test for how effectively Kenya’s legal system can handle complex white-collar crime that straddles multiple jurisdictions and uses professional enablers.
What Happens Next
The court has ordered that Osewe’s existing bond terms remain in force, while his co-accused Patroba Odhiambo Tobias Allen Ishmael will remain in custody pending bond determination.
The plea taking is expected to proceed in the next session, after which the prosecution will outline its witness list and documentary evidence.
The outcome of this case could set an important precedent for future prosecutions under Kenya’s anti-money laundering laws, particularly when legal practitioners are implicated.