NAIROBI, Kenya – Andrew Adel Gaballa, a Dubai-based Australian investor, has told a Nairobi court he was defrauded of about Sh78 million in a gold transaction that turned out to be an elaborate scam stretching across multiple countries.
Gaballa, through his company Sakina Commodities, had entered into an agreement to purchase 600 kilograms of gold that was to be shipped from East Africa to Dubai. The deal, presented as legitimate, involved individuals posing as brokers, lawyers and facilitators.
Court filings show Gaballa was first approached by American intermediaries while in Dubai before being flown to Mwanza, Tanzania, where he was shown what he believed were active gold operations. The visit appeared to build confidence ahead of the transaction, which later shifted to Nairobi.
In Nairobi’s Kilimani area, he was taken through a series of demonstrations, including what was described as gold melting processes meant to verify the product’s authenticity. Investigators now believe the demonstrations were staged.
Gaballa told the court he made several payments tied to the deal, including about Sh63 million labelled as insurance, alongside additional funds for legal services, storage, transport and other logistics. Some of the payments were made through cryptocurrency channels, according to filings.
The transaction stalled soon after the payments were completed. The expected shipment of gold never arrived, and the individuals involved in the deal began making further financial demands while offering shifting explanations for delays.
At one point, Gaballa was told external factors, including regional instability, were affecting the movement of the consignment. Communication eventually broke down.
Kenyan authorities later arrested a suspect identified as Duncan Okonji, who has been charged in connection with the case. Investigations are ongoing, with authorities indicating the possibility of a wider network behind the scheme.
The case has drawn attention to recurring gold scams targeting foreign investors in the region, often involving staged verification processes and complex payment structures designed to build trust before funds are extracted.
Gaballa has also claimed he faced difficulties while attempting to leave the country, including being briefly flagged at the airport, and reported receiving threats during his stay in Nairobi.
The alleged gold consignment at the center of the deal has not been recovered, and no verified shipment linked to the transaction has been confirmed by investigators.
