Politician Stephen Ochieng Nyandiare
An upcoming politician, Stephen Ochieng Nyandiare, was in February this year required to refund 16,000 dollars to an American citizen after a gold deal that he helped facilitate did not go as planned, leading to a prolonged dispute.
According to a document source, Stephen Ochieng Nyandiare, who has declared his intention to vie for the Kisumu Senatorial seat in 2027, introduced Kelly Radnitzer, who had been his friend for years, to a Mr Olivier Omatuku, a Congolese national who reportedly had access to up to 200 kilos of gold for sale.
Convinced by the idea and by his long-standing friendship with Nyandiare, Radnitzer took a flight from Texas to Nairobi, where he met Nyandiare several times to discuss the deal. Nyandiare had, a year before, on May 24, 2023, registered a company called Zumr Africa, whose location was listed as Marsabit Plaza along Ngong Road.
It is this company that he used for the deal with Radnitzer. In the deal, Zumr Africa was to act as the handler of the transaction between Olivier Omatuku and Essilux Trading, a precious minerals trading company based in Dubai. In the deal Olivier Omatuku was supposed to sell 200 kilos of gold to Essilux at a ‘discounted’ price of USD 40,000 per kg.
“The recognized handler of this transaction is ZUMR AFRICA LTD., who is captured in this contract as the link in-between and the only introducer of the seller to the buyer and the buyer to the seller and who is designated as the escrow agent hereto,” says the contract, which was signed on May 13, 2024.
According to the contract, an initial five kilos was to be sent to Dubai for refining to ascertain the true value of the gold. The buyers were not supposed to pay up front until they had confirmed the quantity and quality.
“A first shipment of up to 5 kg (up to five kilograms—in words) as a sample shall immediately be sent for refining as a trial shipment, and the remaining quantity mutually agreed upon by both parties will be immediately exported under the mining code of the government and the ICGRL process. The parties agree that this agreement covers the arrangements for delivery of gold,” said the contract.
It sounded like a good deal. Both the buyer and seller were to pay all costs required to facilitate the shipment of the gold bars to Dubai.
“The total cost of all government taxes, levies, insurance, air freight, and local royalties (within the country of export) shall be paid in full by the Supplier and Buyer. Upon arrival of the bars at the buyer’s nominated port of destination, the buyer shall be responsible for all costs relating to customs clearance, import duties, taxes, and transportation of the bars to a secure location and assay of the bars by the refinery,” said the contract.
The contract was signed on May 13, 2024. Nyandiare signed on behalf of Zumr Africa as the handler of the deal. Mr Basselio Awad signed on behalf of the buyer, while Olivier Omatuku signed as the seller.
On the same day, two other things happened. Zumr immediately sent an invoice of USD 24,000 (Sh3.1 million) to HD Global Services Limited, owned by Radnitzer, for the payment of taxes related to the gold. Another company, Oasis Aviation, was introduced. Oasis describes itself as an aircraft charter company operating from Wilson Airport with a fleet of 50 planes, according to its website.
However, public records at the time did not show Oasis Aviation as a licensed or registered aircraft carrier. This company was supposed to handle the transport of the gold to Essilux. Oasis issued an invoice of USD 128,750 (Sh16.6 million) on August 16, 2024. This was followed by an invoice from Mo Law Advocates, which requested USD 2,000 (Sh258,000) for legal services related to the deal.
Radnitzer then flew to Dubai to await the gold. After several months, the shipment did not arrive, and he began requesting a refund of the money he had spent on the deal.
Eventually, USD 16,000 (Sh2 million) was refunded on February 8 this year through Dexis Investments Holdings Limited. The refund process involved communications from Stephen Nyandiare’s legal team, who emphasised that he valued his reputation.
“Our client is a man of means and intellect who is respected internationally for his professional record. He does not take lightly any statements or actions he views as harmful to his reputation,” wrote Nyandiare’s lawyers to Radnitzer.
“He is surprised and takes exception to what he considers improper demands and communications in recent weeks,” they added.
