A Nairobi businessman has been taken to court after being accused of defrauding an American of more than Ksh.223 million in a fake gold deal.
David Onyango Ochanda stood before Magistrate Dolphina Alego where he was charged with conspiracy to defraud and obtaining money by false pretences. He denied both charges.
According to the charge sheet, the incident happened between March 31 and May 30, 2024. During this period, in Nairobi County, Ochanda together with others who are already facing charges, are said to have tricked American national Tanner Caldwell Cook. The court was told that the accused claimed he was able to sell 2,820 kilograms of gold to Cook, yet he knew this was not true.
The amount involved in the deal was huge. Court papers showed that Cook sent USD 1,271,200, which is about Ksh.223.7 million. That is the money prosecutors say was lost in the scam.
In the second count, Ochanda was accused of obtaining the same money by false pretences. This charge was brought under Section 313 of the Penal Code, which makes it a crime to receive money through lies.
When the case came up for hearing, Ochandaβs lawyer asked the court to release him on bail. The lawyer argued that other suspects facing similar charges had already been given bail and so his client should not be treated differently.
The prosecution did not oppose the request. Prosecutors confirmed that the other suspects in the gold fraud case had been freed earlier. They were released on cash bail of Ksh.400,000 or a bond of Ksh.1 million.
After listening to both sides, Magistrate Alego agreed to grant Ochanda the same terms. He was released on cash bail of Ksh.400,000 or, if he chose, a bond of Ksh.1 million. The court also ordered him to return for trial once the hearing dates are set.
This case is one of many that have exposed how fake gold deals continue to hurt Kenyaβs image. Over the past few years, foreign nationals have been lured with promises of gold shipments, only to lose millions of shillings to fraudsters. The scams often involve elaborate stories, fake documents, and even staged offices to convince victims that the deals are real.
The arrest of Ochanda shows how such cases are now being pursued in court. Prosecutors are keen to show that Kenya will not allow criminals to hide behind fake mining claims and target foreigners with promises of quick profits.
For the victim, American national Cook, the loss is massive. More than one million dollars is a painful hit for any investor. His name now joins a long list of foreigners who have walked into Nairobi chasing gold dreams, only to leave with empty pockets.
The court proceedings will now decide whether the evidence against Ochanda proves the case beyond doubt. If convicted, he faces serious punishment under Kenyan law. But for now, he remains out on bail as the trial moves forward.
Featured image via Screengrab