A Nairobi crypto fraud suspect tied to two unlicensed investment apps and over Ksh 58 million in alleged fraud was ordered held in police custody for seven days by Milimani Law Courts. Dickson Ndege Nyakango, arrested on May 4, 2026, faces allegations of operating a collective investment platform without a licence and conspiracy to defraud, contrary to Kenya’s Capital Markets Act.
The Directorate of Criminal Investigations, through its Capital Markets Fraud Investigation Unit, told the court the case originated from two separate complaints. Kestrel Capital (EA) Ltd, a licensed Nairobi stockbroker, reported discovering an app listed as KCLNL on both Google Play and the Apple App Store. The app advertised an AI-powered fund that claimed a partnership with Kestrel Capital and a separate firm called Nathaniel Capital Partners Limited. Kestrel Capital told investigators it had no connection whatsoever to either entity or the platform.
Two Apps, One Suspect
Chief Inspector Achilles Omondi of the Capital Markets Fraud Investigation Unit told Principal Magistrate Caroline Mugo that KCLNL was pulling investors via WhatsApp groups, directing them to deposit through bank accounts, paybill numbers, and mobile money channels. Returns of up to 7% daily were advertised, a figure DCI described as unusually high.
A second complaint came from Genghis Capital Ltd, which flagged another app called GSIWEA. That platform similarly impersonated the licensed entity, routing investor deposits into accounts traced back to Nyakango. By the time detectives arrested him at an I&M Bank branch along Kenyatta Avenue, he was in the process of withdrawing funds from one of the accounts under investigation. One account alone had received Ksh 33.67 million between April 8 and April 29, 2026, according to court submissions.
The total across both apps, investigators told the court, is believed to be around 58 million shillings.
What the Suspect Said in Court
Footage of the hearing, shared on X by @KenyanSays, captured Nyakango’s response when the magistrate asked him to address the detention application.
“I am a cryptocurrency trader on Binance. I deal with P2P. So when a person comes to my ad and places an order, he makes payment to my bank account, then I release the cryptocurrency to them. I am in no way involved with them.”
Magistrate Mugo cut the response short, clarifying the court was not yet hearing evidence on the merits. The application was simply about whether investigations could proceed without interference if he were released. Nyakango then said he did not think detention would change anything because investigators had already frozen his funds.
The court disagreed. GSIWEA was still live at the time of arrest. Investors were still sending money into the platform. DCI argued that releasing Nyakango at that stage risked evidence being destroyed, funds in unlocated accounts being withdrawn, and the still-active app continuing to collect deposits from people unaware of the ongoing probe.
Kilimani, Seven Days, and a May 13 Date
Prosecution had requested fourteen days. Magistrate Mugo granted seven, saying that was sufficient time for investigators to trace remaining bank accounts, obtain preservation orders, and record statements from the numerous victims identified in transaction records.
Nyakango was remanded at Kilimani Police Station. The matter returns to court on May 13, 2026, for a status update on the investigation.
The DCI noted Nyakango acknowledged having additional bank accounts that the investigating officer had not yet been able to access, adding to concerns about the scope of the alleged scheme. Kenya lost over Sh 5.6 billion to crypto-related fraud in 2024 alone, according to the Daily Nation, and the DCI Capital Markets Fraud Investigation Unit was set up specifically to address the scale of such cases.
The use of licensed brand names to build false credibility, paired with WhatsApp-based investor recruitment and mobile money deposit channels, mirrors a pattern regulators have repeatedly warned about in the Kenyan market.
