Dubai-based Australian loses Sh78 million in Nairobi fake gold scam

On November 23 last year, Andrew Adel Gaballa, an Australian based in Dubai, met Duncan Okonji, a Kenyan.

Gaballa works with Sakina Commodities, a licensed company that imports gold into the United Arab Emirates (UAE). He had been introduced to Okonji by an American identified as Marshall Morrison.

A few days later, the two travelled to Kenya before proceeding to Mwanza, Tanzania. While there, they conducted a site visit to a mining company known as Group 9, where they met Mohamed Faraji on November 28, as well as Abdallah, the site manager.

“They showed us all of the open-pit mining operations. We saw some impressive artisanal open-pit operations and some underground operations in Mwanza, and we returned to Dubai at the end of November,” said Gaballa during an interview in Nairobi on April 2.

He added: “We were later invited to return in January to purchase a consignment of 590kg, including 10kg as collateral for part payment towards security.”

When he came to Nairobi in mid-January, he met a Nairobi-based lawyer, as well as Robert Okonji, described as the exporter from Business Express Enterprises Ltd, a shipping company located at Kitamu House on Kimathi Street, according to an online search.

He returned to Dubai and came back to Kenya in February on a business visa.

“When I returned, we were told that insurance for the gold had to be paid and that we would be taken to a house in Kilimani, where the 10kg collateral would be smelted,” said Gaballa.

He added: “When we went to the house, the collateral became suspicious because the so-called gold was in pellets that looked more like brass. The material we were given was never smelted, so it was never proven whether the gold-coloured bars were genuine.”

The dealers deposited three boxes weighing a total of 10kg of what appeared to be gold at My Safe Kenya, located at Sarit Centre. Gaballa was given keys to the safes but not to the boxes themselves.

The Standard established that the boxes are yet to be opened and are awaiting inspection in the presence of the media, the Ministry of Mining, the Directorate of Criminal Investigations (DCI), gold dealers and lawyers representing Sakina Commodities to verify their authenticity. The alleged dealers even brought people in custom uniforms to convince Gaballa and his associates that the gold was genuine, as captured in a video secretly recorded by Gaballa.

“We later returned in February and signed an agreement between Business Express Enterprises Ltd and Mohamed Faraji, representing Group 9, with an advocate acting as the collateral manager for the transaction,” said Gaballa.

He added: “The law firm had a duty of care to act on our behalf and only release payment to an insurance company once physical gold was confirmed, which unfortunately did not happen.”

When they returned last month, Gaballa said they were informed that the gold was being loaded onto a plane bound for Oman for smelting instead of Dubai, citing the Middle East conflict. However, they later established that no such shipment had taken place and there was no documentation to support the claim.

Instead, they were sent images of what appeared to be brass bars, which were later discovered to be padlocks packed in a box, and allegedly located in Oman, again without any supporting documentation.

Checks with airport authorities revealed that no aircraft had departed with any gold consignment destined for Oman.

“That is when we realised we had been defrauded. We were advised to contact the DCI, who indicated this could be part of a common fraud scheme in Kenya after we explained the smelting process,” said Gaballa.

He added: “They examined the images of the collateral and the certificate we had received and confirmed they were fake. We then worked with officers to apprehend the suspects, and Duncan Okonji was the only one arrested.”

Confirming the arrest on its X account, the DCI stated: “A Kenyan fake gold merchant has been arraigned at the Milimani Law Courts in connection with a USD600,000 fraud scheme targeting an Australian national.”

It added: “The accused, Duncan Okaka Okonji, was arrested on March 24, 2026, and presented in court on March 25, where he was charged with conspiracy to defraud contrary to Section 317 of the Penal Code.”

The DCI said Okonji denied the charge and was released on a Sh5 million bond or an alternative cash bail of Sh1 million, with two contact persons. The case is scheduled for mention on April 7, 2026, at the Milimani Law Courts.

According to a complaint letter to the DCI seen by The Standard, Sakina Commodities wired payments on February 13 to trust accounts held at Ecobank, Westlands branch, as well as to a USDT wallet.

To the Ecobank account, the company deposited USD10,000 (Sh1.3 million) and USD495,000 (Sh63 million). Two payments of USDT40,000 (Sh5.1 million) and USDT19,990 (Sh2.6 million) were made to wallet no oxeaf8212071dafcfe58effad035be5a8ade84e7 (ETH) on March 6, 2026.

It also paid USD4,000 (Sh516,000) to a security storage firm, My Safe Kenya, as presented by the seller.

Gaballa said he incurred more than USD50,000 (Sh6.5 million) in travel and business expenses, excluding salaries and lost income.

“The USD10,000 payment was for legal services and a duty of care to my company, which was not upheld. The USD495,000 was meant as part payment for insurance of a 590kg gold consignment destined for a refinery linked to the Dubai royal family or a consignee in Oman,” he said in the letter.

He added that although the law firm claimed to have paid the insurance brokers on February 26, documents from the brokers indicated the funds remained with the law firm and no policy had been issued, as contractual conditions had not been met.

“It is therefore not possible to claim that any insurance policy was created or that the gold was insured, as no smelting, customs inspection or insurer verification has taken place,” he said.

Gaballa criticised the pace of investigations, saying only one suspect had been arrested while others remained at large. He also expressed frustration over delays in testing the suspected gold held in storage.

“When we attempted to take the gold for testing at the Ministry of Mining, there were efforts to divert it elsewhere. As a result, we have not been able to verify the material, which we believe is fake,” he said.

He further expressed concerns for his safety, citing suspicious calls and limited movement during his stay in Nairobi.

“I do not feel safe leaving my hotel at night. I have largely remained indoors during the day because of this ordeal. Kenya is a beautiful country, and I would like to feel safe walking around, but at the moment I do not,” he said.

Gaballa nonetheless acknowledged support from senior DCI officials but called for stronger commitment to resolving the case.

His lawyer, Nabil Khan, also criticised the progress of investigations, saying the case mirrors previous fake gold scams, including one involving an American who reportedly lost Sh38 million.

“We are frustrated by how the investigations are being handled. Assistance from various offices within the department has been disappointing,” said Khan.

He added: “We urge senior investigators to get to the bottom of this matter. The circumstances suggest a well-organised scheme, especially considering the accused was able to raise a Sh5 million bail on the same day.”

Khan also confirmed that Gaballa eventually left the country after initial travel difficulties.

“We managed to facilitate his departure yesterday after an earlier attempt on Friday failed. A red flag had been placed on his passport, preventing clearance at immigration,” he said.

He added: “Although the DCI later termed it a mistake, we had reservations. The issue persisted the following day until his embassy intervened, allowing him to travel.”