Kenya’s gold market is full of promise—but also peril. Nairobi stands as East Africa’s gold trading hub, attracting investors from around the world. Yet, this opportunity comes with real risks: sophisticated scams have cost buyers millions, with fraudsters posing as officials and using fake documents, equipment, and even staged government offices.

Scammed - A painful lesson

A recent case in Nairobi highlights these dangers. In 2024, representatives of a Dubai-based gold trader—Mr. Ramadhan Suleiman Mohamed and Mr. George William Betoka—were defrauded of $546,000 (about Sh70 million) in a deal for 150 kilograms of gold. The fraudsters presented what appeared to be 305 kilograms of gold nuggets, complete with weighing machines and an electronic gold tester. To build trust, the buyers were even taken to alleged Ministry of Mining offices for sample testing, and 7 kilograms of “collateral” gold was stored at Mysafe Place in Sarit Centre. Despite these convincing measures, the gold never reached Dubai, and the collateral turned out to be stones. Stories like this are common, and many newcomers face losses when they enter the market without proper guidance.

From Scammed to Success - A lesson in perseverance!

Manish Kumar, director of Dubai-based Abhayahasta Gold Trading LLC (AGT), shared how his company was “completely scammed” in a transaction involving 550 kilograms of gold, leading to heavy losses and a temporary halt in operations. Rather than give up, Kumar and his team learned from the experience. They now focus on sourcing smaller, licensed deals in Uganda, with strict systems and security in place—a testament to how perseverance and learning from mistakes can lead to success.

The key takeaway? The Kenyan gold market rewards those who do their homework, work with licensed professionals, and stay vigilant. Losses are common for the inexperienced, but with patience and the right support, success is within reach.

At EasyGold, we help investors navigate these challenges, avoid costly pitfalls, and trade with confidence. If you’re considering gold in Kenya, let our expertise work for you.