The Directorate of Criminal Investigations (DCI) arrested a suspect over an alleged Sh4.95 million investment fraud involving promises to invest money in foreign exchange (Forex) and cryptocurrency trading.
The suspect, identified as Harrison Njeru Muthika, was arrested by detectives from the Nairobi Regional Headquarters following investigations into a complaint filed by a man who alleged that he had been induced to invest his money in the two trading ventures.
In a statement on October 27, 2026, the complainant transferred a total of Sh4,950,000 to the suspect through several transactions conducted between April 30 and July 2, 2025.
The money was reportedly sent under the promise that it would be invested in Forex and cryptocurrency trading.
The DCI did not provide further details on the circumstances surrounding the alleged fraud or whether any portion of the money was recovered.
Investigations into the matter culminated in a review of the case file by the Office of the Director of Public Prosecutions (ODPP), after which a court issued a warrant of arrest.
The warrant paved the way for the suspect's apprehension.
Muthika is currently in custody pending arraignment before the Milimani Law Courts, where he is expected to face charges relating to cheating, operating a collective investment scheme without approval, fraudulently inducing trading in securities, and the acquisition and use of proceeds of crime.
The charges are yet to be tested in court, and the suspect remains presumed innocent unless proven guilty.
The arrest highlights the risks associated with investment opportunities promising financial returns through trading in currencies and digital assets.
Forex trading involves buying and selling currencies to profit from fluctuations in exchange rates, while cryptocurrency trading involves buying and selling digital currencies and other digital assets.
Although both markets offer investment opportunities, they also carry significant financial risks. Investors can lose money, particularly when dealing with unverified individuals or entities promising returns without adequate transparency about how funds will be managed.
The DCI has urged members of the public to exercise due diligence before entrusting their money to individuals or organisations offering investment opportunities, particularly in Forex and cryptocurrency trading.
In its statement, the agency warned that promises of lucrative returns should be approached with caution and encouraged potential investors to verify the legitimacy and regulatory status of investment ventures before committing their funds.
"Verifying the legitimacy and regulatory status of investment ventures can help prevent financial loss and protect investors from potential exploitation."
The DCI further reaffirmed its commitment to investigating financial crimes, safeguarding the public and ensuring that suspected offenders are brought before the courts to answer to allegations against them.
The case adds to the concerns surrounding alleged fraudulent investment arrangements in which individuals are persuaded to transfer money based on assurances that it will be invested on their behalf.
Authorities have advised the public to scrutinise investment offers carefully and establish whether the individuals or entities involved have the necessary authorisation to operate.
Investors are also encouraged to seek reliable information about investment schemes before transferring funds, particularly where substantial amounts of money are involved.
The suspect's expected arraignment at the Milimani Law Courts will mark the next stage of the legal process, where the allegations against him are expected to be formally presented.