Lawyer in Sh61.8million fake gold scam suit walks free after year on the run
It still remains unclear how Osewe remained a fugitive and outside the reach of the court for almost a year after initially being released on police cash bail and why repeated attempts by investigators to secure his attendance allegedly failed. The state described his current residence as unknown and argued that the combination of his alleged previous failure to attend court and difficulty tracing him made him a flight risk.
Controversial city lawyer Alphonce Collins Odoyo Osewe has been released on a Sh300,000 cash bail after spending a night in custody over an alleged Sh61.8 million fake gold deal, despite prosecutors accusing him of evading court proceedings for nearly a year.
Osewe, who was arrested by Directorate of Criminal Investigations (DCI) officers on Tuesday, August 4, 2026, at the Milimani Law Courts while representing Mukurweini MP John Kaguchia in an unrelated criminal matter, denied the charges before Milimani Chief Magistrate Gethi Kibiru.
The lawyer faces charges of obtaining money by false pretences and dealing with suspected proceeds of crime arising from alleged transactions involving two foreign investors and a purported deal for 400 kilogrammes of gold.
It still remains unclear how Osewe remained a fugitive and outside the reach of the court for almost a year after initially being released on police cash bail and why repeated attempts by investigators to secure his attendance allegedly failed.
According to the charge sheet, Osewe and his co-accused, Patroba Odhiambo Tobias, alias “Ishmael”, allegedly obtained USD260,400, equivalent to about Sh35.7 million, from businessman Bernard Shaunda Aete between May 1 and May 9, 2023.
The prosecution alleges that the two falsely represented that they were capable of supplying Aete with 400kg of gold bars, despite allegedly knowing the claim to be false.
Osewe separately faces an allegation that he obtained Sh26.1 million from Adeyeye Enitan Ogunwusi between May 4 and May 5, 2023, after making a similar representation that he could supply 400kg of gold.
The two transactions form the basis of the false pretences charges involving more than Sh61.8 million.
The prosecution has also brought charges under the Proceeds of Crime and Anti-Money Laundering Act, alleging that Osewe acquired and transacted funds that he knew, or had reason to believe, were proceeds of crime.
In one count, prosecutors allege that Osewe acquired and subsequently transacted the Sh26.1 million.
In separate counts, he and Tobias are accused of jointly transacting the USD260,400, allegedly knowing or having reason to believe the money was proceeds of crime intended for the purported purchase of gold bars.
But it was Osewe’s conduct after his initial arrest that became the central issue in the State’s opposition to his release.
DCI investigating officer Corporal Dennis Mugambi told the court that Osewe had previously been arrested and released on Sh50,000 police cash bail on August 14, 2025, pending legal advice from the Office of the Director of Public Prosecutions.
According to Mugambi, Osewe was subsequently informed of the date he was required to appear in court for plea taking but failed to attend.
“On numerous occasions, I personally contacted and summoned the accused person requiring him to attend court for plea taking, but he willfully ignored and failed to honour the said summons without any lawful or reasonable explanation,” Mugambi said.
The investigator said repeated attempts to secure Osewe’s attendance failed, prompting the court to issue a warrant for his arrest.
Detectives from the DCI Nairobi Regional Office eventually arrested him on August 4, 2026 — almost a year after his release on police bail.
The prosecution argued that the sequence demonstrated a clear risk that Osewe would again evade the court if released.
Mugambi further told the court that investigators had visited Osewe’s last known residence while trying to execute the arrest warrant, only to be informed that he had moved out.
The state described his current residence as unknown and argued that the combination of his alleged previous failure to attend court and difficulty tracing him made him a flight risk.
Investigators are also seeking Osewe’s immigration records from the Directorate of Immigration Services after he reportedly claimed that he was outside Kenya during the period when he was required to attend court.
The records are expected to help investigators establish whether his explanation for failing to appear was genuine.
Despite the State’s objections, the court granted Osewe cash bail of Sh300,000, allowing him to walk free after spending one night in custody.
Osewe has denied the allegations and opposed the prosecution’s attempt to have him detained, with his lawyers maintaining that he will attend all court proceedings.
Osewe will now face the charges while out on bail as investigators continue pursuing records they say could shed light on his movements during the period he was wanted by the court.
