A Detectives from the Directorate of Criminal Investigations (DCI) officer has given a detailed account in court on how businessman Jared Otieno and his alleged accomplices orchestrated a complex gold scam that defrauded a foreign investor millions of shillings.
The case, which has reignited debate on Kenya’s fake gold trade, centers around a scheme involving counterfeit gold bars and forged documents designed to trick unsuspecting investors.
Inside the Alleged Gold Scam Operation
The DCI officer told the court that Otieno and his co-accused used Nirone Safe Keeping, a front company based in Nairobi, to stage what appeared to be a legitimate gold export business.
“They lured the investor by showing him boxes filled with what looked like real gold bars,” the officer said. “The office setup, the branding, and even the weighing equipment were all designed to make the deal appear genuine.”
According to the prosecution, Otieno and his associates claimed they could supply 200 kilograms of gold detained at Jomo Kenyatta International Airport (JKIA). The investor, identified as Mr. Chanthavong, believed he was engaging in a legitimate business and transferred over Sh180 million for the purchase.
The Elaborate Deception: Gold-Coated Iron Bars
Court records show that the accused presented heavy metal boxes packed with gold-coated iron bars to the investor. The boxes were identical to those used by licensed gold traders, adding to the illusion of authenticity.
The DCI officer narrated how the syndicate carefully controlled every stage of the “inspection” — from lighting and security to documentation — to ensure the victim never suspected foul play.
It was only after the gold was tested that the investor discovered the bars were fake, made of steel coated with gold paint.
Police Raid in Kileleshwa Exposes the Operation
Weeks after the fraud, detectives raided a luxurious house in Kileleshwa, allegedly owned by Jared Otieno, in connection with the scam. The raid exposed the extent of the operation, with police seizing:
- 28 steel boxes used to store fake gold
- Gold-coated metal bars resembling bullion
- Seven desktop computers used for communication and document forgery
- Dozens of mobile phones linked to the operation
- Sledgehammer heads and molds believed to be used in creating fake bars
During the operation, 15 suspects were arrested and linked to the fraudulent syndicate.
The Co-Accused and Court Proceedings
Otieno was charged alongside Philip Nashon Aroko, Robert Ouko Owiti, Ricky Okoth Ochieng, Peter Omondi, Michael Ochieng, and Paul Otieno, among others.
Other accused include Alice Nzisa, Joyce Akinyi, Julie Kathambi, Seinim Boukar, Abuona Temoua, and Albert Lokunda Lokole.
They all appeared before Chief Magistrate Francis Andayi at the Milimani Law Courts, where they denied charges of conspiracy to defraud and obtaining money by false pretences.
The DCI officer’s testimony is among several pieces of evidence presented by the prosecution to demonstrate how the accused worked together to orchestrate the elaborate fraud.
Kenya’s Ongoing Battle With Gold Fraud
The Jared Otieno case is part of a wider pattern of gold-related scams that have plagued Nairobi for years. Syndicates posing as legitimate exporters often target foreign investors by presenting fake gold bars, forged documents, and phony customs clearances.
In recent years, authorities have intensified crackdowns on fake gold rings, but the scams continue to evolve, often involving new players and sophisticated digital trails.
A senior DCI official noted, “These criminals are well-organized, with access to forged paperwork, rented high-end offices, and even security detail. Investors must verify every transaction with the Ministry of Mining or KRA before proceeding.”
Conclusion
As the case proceeds, the testimony from the DCI officer adds weight to the prosecution’s argument that Jared Otieno and his co-accused ran one of Nairobi’s most elaborate gold scams.
The trial continues, with additional witnesses expected to testify in the coming weeks. The case highlights Kenya’s ongoing struggle to curb high-value financial fraud and the need for tighter oversight in the precious minerals trade.