Wash Wash and Gold Fraud in Kenya
Kenya’s gold industry is lucrative but remains a primary playground for transnational organised criminal rings. From the infamous “Goldenberg” era to modern-day USD 1M+ heists in Lavington, scammers have refined their tactics.
1. The Anatomy of a Typical Gold Scam
Most gold scams in Kenya follow a predictable “script” designed to trap both local and foreign investors:
The Bait: Scammers offer gold at “off-market” prices (often 20–30% below global spot prices).
The Hook: You are shown a genuine sample (a few grams of real gold) which passes a local test
The “Held at Customs” Trap: Once you commit, you are told the bulk gold is held by authorities, requiring urgent “advance fees” for taxes, insurance, or bribes.
The Switch: After payment, you receive a consignment filled with brass, sand, or lead bars painted gold.
2. Common Red Flags to Watch For
If your deal involves any of these, walk away immediately:
Meetings in Hotels/Airports: Legitimate dealers have registered offices and mineral dealer licences.
Fake Assay Reports: Scammers provide forged documents from nonexistent labs.
Pressure Tactics: “The deal expires today” or “Others are waiting.”
Personal Account Payments: Requests to send money via M-Pesa or personal bank accounts rather than corporate escrow.
3. The “Wash Wash” Connection
In Kenya, gold fraud is often linked to “Wash Wash” syndicates. These groups use “black money” or dyed paper to convince victims they can “clean” currency to buy gold. If a dealer mentions “cleaning” money or doubling your cash, it is a 100% scam.
4. How to Transact Safely: The Legal Checklist
To protect your investment, follow the “Mining Act of 2016“ guidelines:
Verify the Licence: Demand a mineral dealer’s licence and verify it with the Ministry of Mining.
Independent Assaying: Never trust the seller’s lab. Use a KEBS-accredited lab for a full fire assay test on the entire consignment, not just a sample.
Use Escrow Services: Only pay through a licensed bank or legal escrow account where funds are released only after the gold is verified at the destination.
Demand a Certificate of Origin: This proves the gold was mined legally and isn’t “conflict gold.”
Summary Table: Genuine vs. Fraudulent Deals
| Feature | Legitimate Deal | Gold Scam |
| Price | Near global market spot price | 20-50% discount |
| Location | Registered office / Refinery | Hotels, airports, or private homes |
| Documentation | Verified KRA and Ministry permits | Forged or “black and white” copies |
| Payment | Bank Transfer / Escrow | Cash, M-Pesa, or upfront “fees” |
Reporting Fraud
If you have been targeted or have a lead, report it to the Directorate of Criminal Investigations (DCI) at Mazingira House, Nairobi, or use their secure tip line.
