Kenyan Binance P2P Trader Detained Over $449K App Scam

Nyakango Dickson Ndege was arrested at an I&M Bank branch on Kenyatta Avenue in Nairobi while attempting to withdraw funds from an account under investigation. A judge ordered seven days’ detention at Kilimani Police Station as investigators continue analysis; the case returns to Milimani Law Courts later this month.

Court records show several accounts were credited with about Ksh33.67 million between April 8 and April 29, 2026. Using the May 7 exchange rate of 129.2 KES per U.S. dollar, the total linked to the accounts under probe is roughly Ksh58 million, or about $449,000. Prosecutors told the court the transactions are part of a larger, unlicensed collective investment scheme.

Investigators found money moving to the alleged platforms through bank transfers, paybill services and mobile money channels. The probe began after a complaint from Kestrel Capital (EA) Ltd about a mobile app called KCLNL, which appeared on app stores and claimed to offer an artificial intelligence-based investment portfolio in partnership with Kestrel and Nathaniel Capital Partners. Both firms deny any involvement.

The KCLNL app promised returns of up to 7% daily and directed users to deposit funds into multiple bank accounts and payment methods. Authorities also identified another application, GSIWEA. KCLNL has been removed from the Google Play Store.

In a recorded message, Ndege denied creating the apps, stating he works only as a Binance P2P trader. Prosecutors argued his role went beyond routine trading and sought detention to trace the digital platforms and identify potential accomplices.

Binance restricted access to a number of P2P accounts in Kenya at the request of the National Police Service. The platform stated the actions complied with local regulations and international law and held a live session to explain the restrictions to Kenyan users.

Kenya introduced new rules in mid-April 2026 to increase oversight of virtual asset service providers after a rise in fraud complaints linked to mobile money and cryptocurrency services. The Directorate of Criminal Investigations is tracing payment flows, seeking to recover funds where possible and determining whether the operation breached the Capital Markets Act.