Kenya Directorate of Criminal Investigations said Sunday that detectives had arrested a woman accused of defrauding an American investor of more than $431,000 through a fake gold transaction in Nairobi.
The suspect, identified as Mildred Kache, also known as Sabreena Ayesha, was arrested in the affluent Kilimani district following an investigation into what police described as a sophisticated international fraud scheme linked to the illicit gold trade.
The case highlights growing concern over fake gold scams targeting foreign investors across East Africa. Fraudsters are increasingly exploiting soaring global bullion prices and weak cross-border verification systems to lure victims with promises of heavily discounted mineral deals. Authorities across the continent have intensified scrutiny following reports that gold smuggling from Africa to the UAE has surged amid rising global demand.
Suspects allegedly offered discounted shipment
According to detectives, Kache and several accomplices allegedly convinced the American national that they could supply what was presented as 400 kilogrammes of genuine gold bars at prices far below international market rates.
Recent global gold prices averaging around $145,000 per kilogramme would place the value of such a shipment at close to $58m.
Police said the suspects instead offered the consignment for slightly more than $431,000, presenting the deal as an exclusive investment opportunity requiring immediate payment. The DCI said the victim had been ‘hooked by the seemingly lucrative deal’.
The agency described the operation as highly organised, claiming the suspects prepared documents, conducted negotiations and staged meetings designed to make the arrangement appear legitimate.
Investor travelled to Nairobi
Authorities said the American businessman travelled to Nairobi after being persuaded the transaction was genuine.
According to the DCI, the victim later transferred millions of Kenyan shillings, converted from the dollar payment, into bank accounts allegedly controlled by the suspects after signing what he believed to be a formal agreement.
Police said the group disappeared shortly after the funds were transferred.
Officials alleged that phone calls and messages to the suspects went unanswered while no gold shipment was ever delivered.
The victim subsequently reported the matter after realising he had been defrauded, the agency added.
One suspect escapes police operation
The DCI said forensic intelligence and surveillance operations led detectives to Kache’s residence in Kilimani, where she was arrested.
However, one alleged accomplice, identified as Ibrahim Yusuf Mohamed, reportedly escaped during the operation and remains at large.
Authorities said Kache is undergoing processing ahead of her court appearance while investigations continue into the wider network behind the alleged scheme.
Under Section 313 of Kenya’s Penal Code, obtaining money by false pretences is punishable by up to three years’ imprisonment.
East Africa faces growing fraud concern
Fake gold schemes have increasingly become a concern in parts of Africa, particularly in regional trading hubs where criminal networks target foreign investors seeking access to mineral exports.
Security experts say many operations rely on forged export permits, counterfeit refinery documents and staged negotiations involving fake brokers posing as licensed dealers. The issue has drawn international attention after the UK and US sanctioned a British-Kenyan businessman over alleged illicit gold trading activities linked to wider regional smuggling networks.
Authorities across the region have repeatedly urged investors to conduct due diligence through recognised commodity regulators and government-approved export agencies before entering into high-value mineral transactions.
Analysts say rising global gold prices have intensified fraudulent activity as organised criminal groups seek to exploit international demand for precious metals.
The case is expected to increase pressure on Kenyan authorities to strengthen oversight of informal mineral trading networks operating in commercial centres such as Nairobi.
