A man suspected to be part of a syndicate that is defrauding investors through online trade will remain in custody pending conclusion of investigations.

Dickson Ndege Nyakango is suspected to have received millions of shillings in his bank account through the fraudulent accounts used to receive the money.

Nyakango will remain in custody for seven days to allow police yo conclude investigations into the matter.

Chief Inspector Achilles Omondi of the Capital Markets Fraud Investigation Unit told Principal Magistrate Caroline Mugo that the suspects Kestrel Capital (EA) Ltd reported that on or about 10th March 2026, they noticed an App listed as KCLNL on Google play store and Apple Store advertising an Al fund purportedly offered by Kestrel Capital in partnership with Nathaniel Capital Partners Limited (NATL).

The court heard that the said Nathaniel Capital was offering automated trading with a daily return of up to 7%, which is unusually high.

“NATL is targeting users through their App in Google and Apple App stores where potential investors are lured into joining a WhatsApp group dubbed Kestrel & NATL Quantitative Trading Lab,” CI Omondi said in his affidavit.

It is alleged that in the the WhatsApp group, investors were advised to deposit the funds directly to their bank accounts, through bank’s pay bill number, or through Pesa link.

“Preliminary investigations confirmed that investors’ funds were channelled to three I&M bank account numbers either as direct deposits or through their pay bill number.

Upon investigating the said accounts, Nyakango was found to be the holder of a I&M bank account domiciled at Ongata Rongai that received over Sh 33 million between 8th and 29th April 2026 from the fraudulent accounts.

More complaints

On 22nd April 2026, the the Unit received another complaint from Genghis Capital Ltd of a suspicious investment firm under the name Genghis Strategy which appeared to impersonate the licensed entity Genghis Capital Ltd.

Preliminary investigations of the receiving bank account, the bank account belonging to the respondent was found to be one of the beneficial accounts of the investment scheme.

The court heard that the investigating officer is yet to record statements from the many members of the public who deposited money in the said accounts as seen from the bank statements, liaise with the communications Authority (CAK) to exploit the App and trace other suspects behind the scheme before submitting the file to the ODPP for consent to charge.

The investigator added that analysis of the bank documents so far received indicate that several other bank accounts have been opened in various banks and Mpesa numbers where the moneys are re-distributed calling for in-depth investigations.

CI Omondi told the court that the suspect has no known fixed abode and may flee and/or interfere with investigations when released on bail.

In addition, it is alleged that Nyakango operated two online Apps namely KCLNL which he has since pulled down and GSIWEA which is still active and he may interfere with it when released.

The case will be mentioned on 13th May 2026 to confirm status of investigations and further directions.