An aspiring politician was compelled to refund $16,000 to an American citizen in February this year after a gold deal he was involved in turned out to be fraudulent, resulting in a prolonged dispute, The Times has learned.

Documents seen by The Times show that Stephen Nyandiare, who has announced his bid for the Kisumu Senatorial seat in 2027, told his longtime friend, Mr Kelly Radnitzer, that he could introduce him to a Congolese national, Mr Olivier Omatuku, who allegedly had access to 200 kilograms of gold for sale.

Encouraged by the proposal and his friendship with Nyandiare, Radnitzer flew from Texas to Nairobi, where he met Nyandiare several times to finalize the arrangement.

A year earlier, on May 24, 2023, Nyandiare had registered a company called Zumr Africa, located at Marsabit Plaza along Ngong Road. This company was to act as the intermediary in the transaction between Omatuku and Essilux Trading, a Dubai-based precious minerals firm. According to the plan, Omatuku would sell 200 kilograms of gold to Essilux at a discounted price of $40,000 per kilogram.

“The recognised handler of this transaction is ZUMR AFRICA LTD, who is captured in this contract as the link in-between and the only introducer of the seller to the buyer and the buyer to the seller, and who is designated as the escrow agent,” reads the contract signed on May 13, 2024.

As stipulated, an initial five-kilogram sample was to be shipped to Dubai for refining to verify the gold’s authenticity. Payment would only be made after the buyer confirmed the quantity and quality.

“A first shipment of up to 5 kg as a sample shall immediately be sent for refining as a trial shipment… The Parties agree that this agreement covers the arrangements for delivery of Gold,” states the contract.

However, the agreement required both buyer and seller to cover all taxes and logistical costs for transporting the gold to Dubai.

“The total cost of all government taxes, levies, insurance, air freight and local royalties… shall be paid in full by the Supplier and Buyer,” the contract notes.

Nyandiare signed the document on behalf of Zumr Africa, with Mr. Basselio Awad signing for the buyer and Omatuku for the seller.

That same day, Zumr Africa invoiced HD Global Services Ltd, Radnitzer’s company, $24,000 (Sh3.1 million) for taxes related to the gold. A second entity, Oasis Aviation, was also introduced. Although its website claimed the company operated a 50-plane charter fleet from Wilson Airport, searches revealed it was not a registered or licensed aircraft operator.

Despite this, Oasis issued an invoice of $128,750 (Sh16.6 million) on August 16, 2024, for airlifting the alleged gold. Mo Law Advocates later billed an additional $2,000 (Sh258,000) for legal services.

After finalizing the arrangements, Radnitzer traveled to Dubai to await the shipment. He waited five months, but the gold never arrived. Frustrated, he demanded a refund for the money he had spent on what had become a fake deal.

On February 8 this year, he was refunded $16,000 (Sh2 million) through Dexis Investments Holdings Ltd.

However, the refund was accompanied by threats from Nyandiare, who appeared angered by Radnitzer’s demands. Through his lawyers, Nyandiare accused Radnitzer of damaging his reputation.

“Our client is a man of means and intellect who is adored globally for his excellent reputation. He does not take it lightly that you have resorted to contemptible threats, harassment, and defamatory words intended to soil his name.”

The letter further described Radnitzer’s conduct as “extortionist, ungrateful, malicious, slapdash and slipshod,” criticizing what it termed his impatience and unprofessionalism.