A suspected cryptocurrency trader, Dickson Ndege Nyakango, has been detained for seven days at Kilimani Police Station as detectives continue investigations into an alleged investment fraud scheme.
Nyakango was arrested on May 4, 2026, at the I&M Bank Kenyatta Avenue branch in Nairobi while allegedly attempting to withdraw money suspected to be proceeds of fraud.
Fraud allegations under probe
Investigators told the court that the case involves allegations of personation and operating an unlicensed collective investment scheme through a mobile application identified as “KCLNL.”
The application is said to have advertised an “AI fund” promising investors daily returns of up to 7 per cent while allegedly claiming false links with established financial institutions.
Complaints from capital markets firms
The court heard that Kestrel Capital (EA) Ltd and Genghis Capital Ltd lodged complaints denying any association with the platform, terming it fraudulent and misleading.
The firms raised concern over the use of their names in what investigators described as a coordinated impersonation scheme targeting investors.
Funds routed through bank accounts
According to the Directorate of Criminal Investigations (DCI), victims were recruited through a WhatsApp group titled “Kestrel & NATL Quantitative Trading Lab” and instructed to deposit money into specified bank accounts and a paybill number.
Investigators further told the court that approximately KSh 33,670,000 was traced to an I&M Bank account linked to the suspect between April 8 and April 29, 2026.
Investigators seek more time
Police also indicated that Nyakango is believed to have operated another application, GSIWEA, which remains active, raising fears that evidence could be interfered with if he is released.
The DCI, through its Capital Markets Fraud Investigation Unit, therefore sought custodial orders to complete investigations into offences including conspiracy to defraud.
Court grants detention order
In an affidavit presented in court, investigators said the suspect has no known fixed residence and poses a flight risk.
Senior Principal Magistrate Carolyne Mugo Nyaguthii approved the application and ordered his continued detention.
“A custodial order is hereby issued that the respondent be detained at Kilimani Police Station for a period of seven days to enable the investigating officer attached to the Directorate of Criminal Investigations to complete investigations,” the court ruled.
Next mention date
The matter will be mentioned on May 13, 2026, to confirm compliance and update the court on the progress of investigations.
