Kisumu senatorial hopeful denies involvement in fraudulent scheme, threatens legal action against media outlet
A Kisumu-based lawyer and politician has found himself at the center of a controversy involving allegations of a fake gold deal that reportedly cost an American businessman thousands of dollars.
Stephen Nyandiare, who has declared his intention to contest the Kisumu senatorial seat in the 2027 elections, is accused of facilitating a fraudulent gold transaction that collapsed after an investor waited five months for a shipment that never materialized.
According to documents seen by Kenya Insights, Nyandiare allegedly introduced Kelly Radnitzer, a Texas-based businessman, to Olivier Omatuku, purportedly a Congolese national with access to 200 kilograms of gold.
The deal, structured through Nyandiare’s company Zumr Africa Limited, was meant to connect Omatuku with Essilux Trading, a Dubai-based precious minerals firm.
The transaction, formalized in a contract signed in May 2024, promised an initial five-kilogram sample shipment at a discounted rate of 40,000 US dollars per kilogram.
Zumr Africa was listed as the escrow agent and handler of the deal.
However, red flags emerged when invoices totaling over 150,000 dollars were issued for taxes, legal fees, and air freight by companies including Oasis Aviation, an entity that reportedly operates only as a website and lacks proper licensing as an aircraft carrier.
After months of waiting in Dubai for gold that never arrived, Radnitzer reportedly demanded a refund. In February this year, 16,000 dollars was returned through Dexis Investments Holdings Limited.
Through his lawyers at Okoyoori Nairobi Advocates, Nyandiare has vehemently denied the allegations, describing the story published by local media as false, malicious, and defamatory.
His legal team has characterized the article as distorted and offensive, claiming it was designed to tarnish his reputation.
In a strongly worded letter, Nyandiare’s lawyers state that their client is astounded by what they term as extortionist and malicious actions.
They dispute key facts in the published story, including the date Zumr Africa was registered and the circumstances surrounding the refund.
The lawyer-politician maintains that he is a man of means and intellect with an excellent global reputation, and that the publication was intended to harass and pressure him.
Efforts to reach Radnitzer for comment were unsuccessful by the time of going to press.
The allegations come at a sensitive time for Nyandiare, who is positioning himself for a political career in Kisumu County.
The controversy highlights ongoing concerns about gold scams in Kenya, where fraudsters have previously used elaborate schemes involving fake mining companies and forged documents to defraud international investors.
