A Nairobi lawyer, Michael Otieno Owano, was arrested on November 6, 2024, in connection with a fraudulent scheme that defrauded an American company of Ksh 182 million (approximately USD 1.6 million). His arrest occurred at the Milimani Law Courts, where he was attending a separate criminal hearing. Owano is the head of Owano Michael & Co. Advocates and is accused of being part of a syndicate that exploited foreign investors through fake government tenders.
The case originated in 2022 when the proprietor of the Underground Pipeline Rehabilitation Company, based in the United States, was lured to Kenya by Alvin Alexander, who claimed to be the CEO of Orion AST Company. Alexander promised lucrative government contracts and arranged meetings with individuals posing as government officials in Nairobi. During these meetings, the complainant received three fraudulent tender documents that appeared legitimate.
The tenders included:
- Tender No KCAA/032/2021-2022: Supply, installation, and commissioning of Area Control Centre and Disaster Recovery System equipment.
- Tender No ICTA/RFP/03/2022-2022: Consultancy services for designing, implementing, and maintaining an Information Management System.
- Tender No MEWNR/T/18/2021-2022: Supply, delivery, installation, and commissioning of Automatic Weather Stations.
Under the guise of securing these tenders, the complainant was instructed to make substantial payments to various law firms for legal fees and work permits necessary for the projects to proceed. In total, payments amounting to USD 1,617,200 were made through four law firms:
- Owano Michael & Co. Advocates: USD 90,000 for legal fees related to the first two tenders.
- Ollando Misare & Associates, LLP: USD 30,000 in legal fees and USD 547,000 for bid bonds related to the third tender.
- Dennis Onyango & Company Associates: USD 200,200 for work permits for Orion employees.
- Ouko Angado Co. Advocates: USD 750,000 for additional work permits.
After these payments were made, the complainant experienced months of delays and evasions from the syndicate members. Communication became increasingly difficult as the fraudsters blocked contact and failed to honor scheduled meetings.
Feeling deceived and frustrated after several months of unfulfilled promises, the complainant reported the fraud to the Directorate of Criminal Investigations (DCI). Following this report, detectives launched an investigation into the fraudulent operation. Detectives tracked Owano’s activities and discovered that he had a history of legal troubles related to similar scams. His arrest was part of a broader effort by law enforcement to combat fraud targeting foreign investors in Kenya. A DCI spokesperson noted that such schemes pose significant risks to investors unfamiliar with local systems.
After his arrest at Milimani Law Courts, Owano was processed for arraignment but was later released on cash bail pending further investigation and approval of charges by the Office of the Director of Public Prosecutions (ODPP). The DCI confirmed that investigations are ongoing and that other individuals involved in this scam are also being pursued.
This case highlights a growing concern regarding fraudulent schemes targeting foreign investors in Kenya. With increasing globalization and investment opportunities in Africa, such scams threaten to undermine confidence in local markets. The DCI’s commitment to cracking down on these crimes is crucial for protecting legitimate business interests.
As investigations continue into this high-profile case, it serves as a stark reminder for foreign investors to exercise caution when engaging with unfamiliar entities in Kenya. The involvement of legal professionals in such schemes raises further questions about regulatory oversight within the legal sector.
The arrest of Michael Otieno Owano marks a significant step in addressing fraudulent practices that exploit foreign investors. As authorities work to dismantle this syndicate and bring all responsible parties to justice, it is imperative that measures are implemented to safeguard against such deceitful operations in the future. The outcome of this case will be closely watched by both local and international stakeholders as Kenya strives to maintain its reputation as an attractive investment destination.
