Kelvin Otieno Onyango, known as Sonko, and Seth Steve Okute have been linked to several gold-related fraud cases in Kenya over recent years.
These cases involve foreign investors who lost money in deals that did not lead to any real gold delivery. The men were arrested again in connection with a case involving a Swiss investor who lost around Sh18 million.
According to reports, the latest incident started around April 2025. A Swiss national named Stephane Pierre Harder, working through an agent, was approached about buying 20 kilograms of gold that was supposed to be shipped to Dubai.
The deal looked official with paperwork and involved payments for logistics and clearance fees. The money, about USD 140,000, was sent through a law firm called Kandiki & Advocates.
No gold was delivered, and the investor reported the matter to the police.Detectives arrested Kelvin Otieno Onyango, also called Sonko, and Seth Steve Okute.
Other people named in the case include Kayembe Malamba Eli, Benold Okoth, and Esther Bituku Kandiki, who is still being sought. The Office of the Director of Public Prosecutions reviewed the file and approved charges.
These include conspiracy to defraud and obtaining money by false pretence under the Penal Code.
The suspects were charged in court.This is not the first time for these individuals. Kelvin Onyango has faced similar accusations before. In earlier cases, he was linked to forged mineral dealer licenses and deals where foreign buyers lost large sums.
For example, there was a case involving a Chinese investor and another with a Canadian investor where over USD 618,000 was lost in a supposed 250-kilogram gold export deal to Dubai.
Payments went through logistics companies and accounts connected to the group, but nothing was shipped.
Seth Steve Okute also has a history in similar matters. He was involved in past gold clearance scams, including one with an American investor from Los Angeles.
In those instances, fake documents like waybills and customs letters were used to convince victims that real shipments from places like Burkina Faso or Ivory Coast were being handled.
Victims paid for duties and fees, but the gold never appeared.
Investigators say the group used common methods.
They created the appearance of a serious business with offices, company names like SwiftTaxis Logistics or NewSkys Global Cargo Movers, and connections to law firms for escrow services.
Foreign buyers were often shown proforma invoices, export papers, and promises of quick profits. Money was moved to bank accounts or cryptocurrency wallets.
When victims asked for proof or delivery, the scammers delayed or disappeared.
The total losses linked to these and related schemes over the years are reported to be high, with some estimates over 250 million shillings across cases from different countries including the United States, Canada, and Switzerland.
Police have recovered some items during searches, but recovering all the money has been difficult.
The justice system has released some suspects on bail in past cases, and they later appeared in new investigations.
This has led to questions about how repeat cases happen and what can be done to stop the networks.
Kenya has a real gold trade, but these frauds damage the country’s image with international partners. Foreign investors become careful after hearing about such stories. Authorities continue investigations to find more people involved and trace the funds.
The court process is ongoing for the current charges, with mentions and hearings scheduled. Victims are advised to verify all documents and work only with licensed, known dealers.
In simple terms, the pattern is the same across these incidents. People posing as gold traders or logistics experts contact potential buyers. They offer good deals on gold from the region.
They ask for upfront payments for taxes, transport, or clearance. Once the money is paid, problems start, and the gold never shows up. The use of names like Sonko adds a sense of local importance, while fake papers make it seem real at first. These activities have gone on for several years, affecting many victims and raising concerns about better oversight in the sector.
The Directorate of Criminal Investigations has been active in these matters, making arrests and working with the prosecution.
However, the challenges remain because the schemes involve people from different countries and use modern ways like crypto to move money quickly.
For now, the focus is on the latest case, but past records show that stopping such activities fully needs ongoing effort from police, courts, and regulators.
People interested in gold business should always check backgrounds and use official channels to avoid losses.
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