Kenyan detectives have arrested Dickson Ndege Nyakango, a crypto trader at I&M Bank‘s Kenyatta Avenue branch in Nairobi while he was attempting to withdraw funds linked to a cryptocurrency fraud scheme.
- Kenyan detectives have arrested Dickson Ndege Nyakango, a crypto trader at I&M Bank‘s Kenyatta Avenue branch in Nairobi while he...
- The Directorate of Criminal Investigations had been tracking his account before moving in.
- Omondi told the court that Nyakango is being investigated for operating a collective investment scheme without authorisation, contrary to Section...
- Nyakango’s I&M Bank account, domiciled at Ongata Rongai, received over Ksh 33 million between April 8 and April 29, 2026,...
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The Directorate of Criminal Investigations had been tracking his account before moving in. After the arrest, the court authorised the police to hold the crypto trader for seven days while investigations continue, as reported by the local media outlet, Daily Post.
Why was the crypto trader arrested?
The application was brought before Milimani Senior Principal Magistrate Caroline Mugo by Chief Inspector Achilles Omondi of the DCI’s Capital Markets Fraud Investigation Unit.
Omondi told the court that Nyakango is being investigated for operating a collective investment scheme without authorisation, contrary to Section 23(2) as read with Section 34(A)(1) of the Capital Markets Act, as well as conspiracy to defraud.
They further told the court that Kestrel Capital (EA) Ltd filed a complaint on or about March 10 after discovering an app listed as KCLNL on the Google Play Store and the Apple App Store.
The app was advertised as an AI fund purportedly offered by Kestrel Capital in partnership with Nathaniel Capital Partners Limited. The platform was offering automated trading with a daily return of up to 7 per cent.
A second complaint was received on April 22 from Genghis Capital Ltd regarding a suspicious platform called “Genghis Strategy,” which investigators found was impersonating the licensed entity.
Nyakango’s I&M Bank account, domiciled at Ongata Rongai, received over Ksh 33 million between April 8 and April 29, 2026, from accounts linked to both fraudulent schemes.
Investigation ongoing
Upon arrest, Nyakango admitted to operating several bank accounts that are still under investigation.
Investigators told the court he operated two apps, KCLNL, which has since been pulled down, and GSIWEA, which remains active. The DCI said releasing him posed a direct risk to the investigation.
The court heard that releasing Nyakango could allow him to withdraw funds from accounts that have not yet been frozen, potentially causing irreparable losses to the public.
Investigators are still recording statements from victims and working with the Communications Authority of Kenya to trace other suspects behind the scheme.
The case will return to court on May 13 for a status update. The arrest is part of a broader DCI crackdown on crypto fraud in Kenya, where authorities have handled over 500 digital asset-related cases in the past three years.
Across Africa, regulators are intensifying pressure on crypto traders operating outside licensed frameworks amid a rise in fraud cases.