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App developer and the fake AI investment fund that pulled in Sh34m from Kenyans
DCI investigators allege the fake investment scheme drew Sh33.6 million from investors through apps posing as legitimate trading platforms on the Google Play Store and Apple App Store.
A Nairobi court has allowed the Directorate of Criminal Investigations (DCI) to detain a man accused of defrauding investors of millions of shillings through a fake online investment portal listed on the Google Play Store and Apple App Store.
By the time Dickson Ndege Nyakango was arrested on May 4, investigators said Sh33.6 million had been deposited into one of the bank accounts linked to the scheme.
Evidence presented in court alleged that Mr Nyakango developed two apps – KCLNL, which has since been removed, and GSIWEA, which remains active – claiming to offer an AI-powered investment fund.
The apps were allegedly designed to appear professional and credible, mimicking legitimate investment platforms and falsely suggesting partnerships with licensed stockbroker Kestrel Capital (EA) Ltd and Nathaniel Capital Partners Ltd (NATL).
The scheme promised unusually high returns, including automated trading with daily profits of up to seven percent, a rate that raised immediate concerns among financial authorities.
According to investigating officer Achilles Omondi of the DCI’s Capital Markets Fraud Investigations Unit, the apps directed potential investors to a WhatsApp group named Kestrel & NATL Quantitative Trading Lab.
Members of the group were instructed to deposit money into designated bank accounts through Paybill numbers or Pesalink, giving the operation an appearance of legitimacy.
Between April 8 and April 29, 2026, the accounts reportedly received Sh33.6 million from unsuspecting investors.
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Investigators said the scheme appeared to extend beyond the two apps.
On April 22, the unit received a complaint from Genghis Capital Ltd over a suspicious entity named Genghis Strategy, which allegedly impersonated the licensed broker.
The same bank account used in Mr Nyakango’s alleged scheme was listed as a beneficiary, suggesting an attempt to mislead investors and move funds across multiple channels.
Mr Omondi told the Milimani magistrate’s court that Kestrel Capital had publicly dissociated itself from NATL, saying it had no official partnership with the firm.
He said releasing Mr Nyakango on bond could allow him access to other bank accounts that had not yet been frozen, potentially exposing more investors.
“Due to the complexity of the matter, the large number of victims, and multiple accounts involved, I need more time to investigate and trace accomplices,” Mr Omondi told the court.
Preliminary investigations indicated that several bank accounts, including one that has since been frozen, directly benefited from the alleged fraud.
Authorities are still recording statements from complainants while working with the Communications Authority of Kenya (CA) to investigate the apps and identify possible additional suspects.
Analysis of documents collected so far indicates that multiple bank accounts and M-Pesa numbers were used to redistribute funds, pointing to what investigators believe was a sophisticated effort to obscure the money trail.
Mr Nyakango was arrested on May 4 at I&M Bank’s Kenyatta Avenue branch while allegedly attempting to withdraw funds from one of the accounts linked to the scheme.
Although the DCI had sought 14 days to complete investigations, the Milimani magistrate’s court granted seven days.
