A daring Chinese con in Nairobi is under investigation for allegedly stealing Ksh170 million from a local construction firm through a complex banking fraud. Detectives at the Directorate of Criminal Investigations (DCI) say the suspect used falsified documents to pose as a company director and divert millions meant for government road projects.
According to DCI documents, the man opened a fake bank account in the firm’s name using forged board resolutions and letters of authorization. The fraudulent account was used to siphon money from agencies, including the Kenya Rural Roads Authority (KeRRA). The scheme remained undetected for months, only coming to light after an internal audit exposed glaring inconsistencies in company transactions.
Chinese Con in Nairobi Behind Massive Ksh170M Fraud
Investigators believe the fraud began in 2020 at the height of the COVID-19 pandemic. At the time, the company’s genuine directors were stranded abroad due to global travel restrictions. Exploiting their absence, the suspect allegedly activated the fake account and began diverting millions of shillings meant for road construction tenders.
A forensic audit revealed that the signatures used to open the account and authorise payments did not match those of legitimate directors. The audit also found that payments from government agencies had been misdirected to the fake account, bypassing the firm’s official banking channels.
Detectives say the suspect carefully disguised the transactions to appear routine, making it difficult for local employees to notice the fraud. However, a review of banking records exposed the discrepancies, forcing the company to alert the DCI Banking Fraud Unit.
Directors Distance Themselves from the Fraud
One of the firm’s legitimate directors has recorded a statement with the DCI, firmly denying any involvement in the fake account. He told investigators that no board meeting or company resolution ever authorised the account’s creation.
The director said he first became aware of the scheme after an internal audit flagged suspicious transactions tied to government payments. He added that all authorised payments were supposed to go through the company’s official bank account and that the parallel account was unknown to the board.
In his statement, the director urged the DCI to move swiftly, expressing concern that his identity might have been used in the fraudulent dealings. He also warned that the incident could tarnish the firm’s reputation and affect ongoing government projects.
Sources within the DCI say investigators are now tracing the flow of the stolen funds and examining whether local bank officials may have facilitated the fraud by overlooking key verification procedures.
Chinese Suspect Files Counterclaim in Court
In a surprising twist, the Chinese suspect has filed a counterclaim in the High Court in Nairobi, demanding millions in compensation. He argues that the stolen money represents unpaid salary and personal funds he allegedly used to finance company operations over several years.
Through his lawyers, the suspect claims the firm was winding down its Kenyan operations and relocating abroad, and that he risked losing his “dues” if the court failed to intervene. However, DCI sources dismiss his claims, saying the evidence clearly links him to forged signatures and falsified company records.
The High Court has frozen the disputed account as investigations continue. The case is set for mention on October 29, when the court is expected to issue further directions.
DCI officials have also confirmed that they are liaising with immigration authorities to establish the suspect’s travel history and determine if he had local accomplices.
A Wake-Up Call for Corporate Kenya
The Ksh170 million scam exposes how easily fraudsters can exploit loopholes in corporate governance and banking systems, especially when companies fail to enforce strict internal controls. Investigators say the case should serve as a warning to other firms to verify all authorizations and board resolutions before processing payments or account changes.
For now, the DCI Banking Fraud Unit is racing to recover the stolen money and bring the Chinese suspect to justice. The outcome of the case could set a precedent for how Kenya handles foreign-linked financial crimes in the future.
