A joint operation consisting of DCI and NPS officers drawn from Langata Sub-county has led to the arrest of Stephen Magero in connection with a fraudulent gold scam involving a Pakistani national.
The fake gold dealer was arrested at Sultan Suites, Ngong View Estate, following investigations into a complaint filed by the foreign national who reported being defrauded of USD 34,800 (Ksh4.5 million).
Investigations revealed that the suspect presented the complainant with 500 grams of counterfeit gold and received the payment in cash.
Subsequent testing of the gold revealed it to be fake, prompting the complainant to report the matter at Karen Police Station.
A search conducted at the suspect’s office resulted to the recovery of ten (10) bars of suspected fake gold, business cards bearing the name John Mbalaka, and a MacBook Pro laptop.
Other recovered items include smelting machines and related apparatus, a mining certificate under the name Chawanda Minerals, a weighing machine, two plastic boxes containing sand and several assorted files and documents.
The suspect is currently in custody pending arraignment.
The incident comes a few days after a complainant testifying virtually from Italy on September 4, 2025, told a Nairobi court how he was duped into a fraudulent gold deal involving a purported 150-kilogram gold consignment.
He said the suspects showed him certificates of ownership dated April 9, 2024, and a mineral export permit allegedly issued by the Mining Department on February 9, bearing his name and passport number.
Although the men declined to hand him the documents, he managed to take photographs of them.
At Jomo Kenyatta International Airport (JKIA), the complainant recounted, he was instructed to check in, proceed to the lounge, and wait for the supposed exporters.
“We waited, but as departure time neared, they told us they were trying to sort out some issue,” he testified.
According to him, the men later claimed the Kenya Revenue Authority (KRA) had imposed a penalty of USD 1.62 million—about 20 percent of the consignment’s value—and warned that unless it was paid within seven days, the gold would be confiscated.
He was told that once payment was made, the consignment would be cleared and exported within three days.
Despite expressing doubts, he said he was persuaded by one of the accused, identified as Frank, who assured him he would “take responsibility.”
