Court Detains Suspect for 7 Days Over Sh58 Million Investment Fraud Probe

A Nairobi court has ordered the detention of a suspect for seven days as investigations continue into an alleged investment fraud scheme involving over Sh58 million.

Milimani Principal Magistrate Carolyne Nyaguthii Mugo directed that the suspect be held at Kilimani Police Station to allow detectives from the Directorate of Criminal Investigations (DCI) to complete ongoing inquiries.

In granting the orders, the court noted that large sums of money had already been received through the suspected scheme and that, alarmingly, members of the public were still sending in funds, unaware of the ongoing investigations through the currently running platform.

According to the DCI, the scheme allegedly operated through mobile applications and WhatsApp groups, where individuals were lured with promises of unusually high daily returns, creating the illusion of a legitimate and profitable investment opportunity.

Police told the court that victims, some investing their savings in hopes of quick returns, were directed to deposit money through bank accounts, paybill numbers and other digital channels.

Part of the funds has since been traced to accounts linked to the suspect, with authorities indicating that the total amount involved so far exceeds Sh58 million and could rise as more victims come forward.

The suspect, Dickson Ndege Nyakango, however, told the court that he trades in cryptocurrency and that the said money is a result of the trade.

He was arrested on May 4 at a Nairobi bank branch while allegedly attempting to withdraw some of the funds believed to be proceeds of the scheme.

The court heard that the case involves multiple bank accounts, digital platforms, and a growing number of complainants, many of whom are yet to record statements.

Detectives warned that releasing the suspect at this stage could jeopardise investigations, citing the risk of interference with evidence, withdrawal of funds from accounts that have not yet been frozen, and possible contact with accomplices.

The case will be mentioned on May 13 for further directions.