Crypto Trader Suspect Detained for Seven Days in Fraud Probe

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Dickson Ndege Nyakango has been detained for seven days at Kilimani Police Station following his arrest over an alleged cryptocurrency-linked investment scheme.

Nyakango was arrested on May 4, 2026, at the I&M Bank Kenyatta Avenue branch while allegedly attempting to withdraw funds suspected to be proceeds of fraud.

According to investigators, the case arose from complaints lodged by Kestrel Capital (EA) Ltd and Genghis Capital Ltd, who denied any involvement in an online investment platform that was allegedly using their names without authorization.

Dickson Ndege Nyakango before Milimani law courts on May 5,2026/Reporter

Detectives told the court that the scheme was operated through a mobile application identified as “KCLNL,” which advertised an “AI fund” promising returns of up to 7 per cent daily while falsely claiming links with Kestrel Capital and Nathaniel Capital Partners Limited.

The court heard that investors were recruited through a WhatsApp group titled “Kestrel & NATL Quantitative Trading Lab,” where they were instructed to deposit money into specified bank accounts and a paybill number.

Investigations further revealed that funds were traced to multiple accounts, including an I&M Bank account linked to the suspect, which received approximately Sh 33,670,000 between April 8 and April 29, 2026.

Police also told the court that the suspect is believed to have operated two applications — KCLNL, which has since been pulled down, and another identified as GSIWEA, which remains active.

Following his arrest, the Directorate of Criminal Investigations (DCI), through the Capital Markets Fraud Investigation Unit, applied for custodial orders to allow completion of investigations into offences including personation, operating an unlicensed collective investment scheme, and conspiracy to defraud.

In an affidavit sworn by CI Achilles Omondi, investigators argued that the suspect has no known fixed residence, is a flight risk, and may interfere with investigations or access remaining funds if released.

Dickson Ndege Nyakango before Milimani law courts on May 5,2026

Senior Principal Magistrate Carolyne Mugo Nyaguthii granted the application and ordered his 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 magistrate ruled.

The matter will be mentioned on May 13, 2026, for mention to confirm compliance and update the court on the progress of investigations.

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