A Nairobi court has ordered the detention of Dickson Ndege Nyakango for seven days as detectives investigate an alleged cryptocurrency investment fraud involving more than KSh58 million.
The ruling was issued by the Milimani Law Courts following an application by the Directorate of Criminal Investigations through its Capital Markets Fraud Investigation Unit.
Investigators told the court that Nyakango is a key suspect in an alleged scheme involving the operation of an unlicensed collective investment platform, contrary to the Capital Markets Act, as well as conspiracy to defraud.
According to court documents, the investigations were triggered by complaints from Kestrel Capital (EA) Ltd, which flagged a suspicious investment application identified as KCLNL on Google Play and the Apple App Store.
Detectives said the app allegedly claimed to offer an artificial intelligence-powered investment fund associated with Kestrel Capital in partnership with another entity known as Nathaniel Capital Partners Limited.
However, investigators stated that Kestrel Capital denied any links to the platform or the entity, raising concerns of impersonation and fraudulent misrepresentation.
The court heard that unsuspecting investors were allegedly promised daily returns of up to 7 percent and recruited through WhatsApp groups before being instructed to deposit funds through bank accounts, paybill numbers and mobile payment channels.
Preliminary findings indicate that millions of shillings were channelled through several accounts allegedly linked to the suspect. One account reportedly received approximately KSh33.67 million between April 8 and April 29, 2026.
Investigators further revealed that Nyakango was arrested on May 4, 2026, at an I&M Bank branch along Kenyatta Avenue while allegedly attempting to withdraw funds from one of the accounts under investigation.
The prosecution argued that the case involves multiple victims, digital platforms and complex financial trails requiring more time for analysis and identification of possible accomplices.
Detectives also expressed fears that releasing the suspect could interfere with investigations or allow access to additional accounts and related platforms, including another app identified as GSIWEA.
The court allowed detectives to detain Nyakango at Kilimani Police Station for seven days pending completion of investigations.
The matter will be mentioned later this month for an update on the progress of the probe.
