A Dubai-based company, SH Trading DMCC, has filed a lawsuit against Kerongwe & Sons General Traders Ltd, owned by CEO John Kerongwe Mwita, seeking the refund of Ksh 63.24 million for undelivered gold. The case has reignited concerns over fraudulent dealings in Kenya’s gold trade.
According to court documents, SH Trading DMCC alleges that it paid $489,950 (approximately Ksh 63.24 million) to Kerongwe & Sons for the supply of 700 kilograms of gold, which was to be delivered to Dubai by June 5, 2024. However, the gold was never delivered, prompting the firm to take legal action.
The Dubai-based company is demanding a full refund of the payment along with damages for breach of contract and losses incurred due to the failed transaction. SH Trading DMCC argues that the non-delivery caused significant financial and operational disruptions to its business.
John Kerongwe Mwita, the CEO of Kerongwe & Sons General Traders Ltd, has been named as a key defendant in the lawsuit. The case highlights the challenges faced by international traders dealing with Kenyan gold suppliers, where reports of fraud and unmet obligations have been on the rise.
This legal battle underscores the urgent need for stricter regulations and enhanced oversight in Kenya’s gold-trading sector to protect investors and restore trust in the market.
A screenshot from blogger Cyprian Nyakundi’s post on X on January 7 2024
As the case proceeds, the mining and trade sectors in Kenya are expected to face increased scrutiny, with the outcome likely to have implications for the country’s reputation in the global gold trade.
All the same, it remains to be seen if the investigative agencies in Kenya and abroad will take the necessary action to ensure that the victim of fraud will get justice and, whether the culprit will face the law.
