What began as a seemingly lucrative opportunity to export gold from Nairobi to Dubai has morphed into a multi-million-shilling fraud investigation involving forged documents, foreign investors and an alleged criminal network.
Two suspects, a taxi driver and a trader, stand accused of defrauding foreign investors in a fake gold deal that prosecutors describe as an elaborate scam that cost victims Sh54.9 million.
The suspects, Ahmed Bashar Mohamed and Kache Mildred alias Sabeena Avesha, have been released on bond as police continue with investigations.
A magistrate at the Milimani Law Courts ruled that the prosecution had failed to present compelling reasons to justify detaining the suspects for 10 days pending further investigations.
The suspects were each released on a Sh2 million bond with one surety of a similar amount, or an alternative cash bail of Sh200,000. They were also ordered to surrender their passports and cooperate with investigators.
According to court documents, the two are accused of defrauding investors Terry Lee Schrubb Jnr and Kenneth Adler of $447,000 (about Sh54.9 million) through a fake gold export scheme.
The prosecution told the court that the suspects allegedly convinced the investors that they could arrange the transportation of gold from Nairobi to Dubai. The deal was supported by what investigators now say were forged assay certificates, fake insurance documents and fabricated shipment papers.
“The investigations have revealed that forged assay certificates, fake insurance documents and fake shipment documents were used to deceive the complainants into believing that the transactions were genuine,” prosecutors submitted.
Police further told the court that forensic analysis of bank records and financial transactions is ongoing as detectives work to trace the movement of funds and identify other individuals believed to be part of a wider syndicate.
Defence lawyer Mohamed Noor told the court that Mr Ahmed had been cooperative with investigators and was willing to assist police in identifying the alleged mastermind behind the scheme.
“He has opted to assist the police to identify the main culprit in the gold racket deal and requires to be free,” he submitted.
For Ms Mildred, defence lawyer Danstan Omari urged the court to grant her lenient bail terms, citing her pregnancy and medical needs. He told the court that she had missed an antenatal clinic appointment scheduled for May 18 2026 due to her detention.
“Courts do not jail or order incarceration of pregnant women suspects,” Mr Omari argued, adding that the Constitution protects the rights of unborn children and requires courts to consider humanitarian circumstances.
The prosecution, however, opposed the release of the suspects, arguing that investigators needed more time to analyse financial records and finalise a comprehensive charge sheet.
But the magistrate sided with the defence, stating that the threshold for denying bail had not been met.
“This court finds that the prosecution has not presented compelling reasons to warrant the grant of orders detaining the two respondents herein for 10 days,” the court ruled.
The magistrate reiterated that bail remains a constitutional right unless there are exceptional circumstances that justify denial.
The ruling allows the detectives to continue their probe while the suspects remain out of custody. Investigators are now focusing on tracing financial transactions, verifying documents and establishing whether the alleged fraud ring extends beyond the two suspects already before court.
The matter will be mentioned in two weeks for further directions as the Sh54.9 million gold scam probe continues. The investors allegedly did not receive the gold at their Dubai premises as promised.
The two complainants Schrubb Jnr and Adler flew back to Kenya then begun to trace the suspects. The magistrate heard Sabeena attempted to evade justice by locking herself in her city residential apartment.
The magistrate heard she attempted to run away from justice by scaling down a wall but detectives spotted her and arrested her immediately she landed.
Although the suspects attempted escape, the court observed that no compelling evidence had been presented to deny them bond.
