Detectives from Kenya’s Directorate of Criminal Investigations (DCI) have apprehended Michael Otieno Owano, a Nairobi lawyer, in connection with a Ksh.182 million ($1.6 million) tender scam that targeted an American company. Owano, the head of Owano Michael & Co. Advocates, was detained at Milimani Law Courts on Monday after attending a separate criminal hearing.
Authorities say Owano was part of a larger syndicate that misled Underground Pipeline Rehabilitation Company, a U.S.-based firm, into making payments for non-existent government contracts. The complaint was filed by the American firm’s proprietor, who was initially enticed to Kenya by Alvin Alexander, who posed as the CEO of Orion AST Company. The complainant claims that various high-profile meetings were arranged, with members of the syndicate posing as government officials.
The fraudulent tenders allegedly included lucrative projects for the supply and installation of disaster recovery systems, consultancy for information management systems, and automatic weather stations. Convinced of the legitimacy of these contracts, the U.S. firm transferred approximately Ksh.182 million to various law firms, including Owano’s, under the pretense of legal fees, bid bonds, and work permits.
After months of delays and unfulfilled promises, the complainant reported the scam to the DCI, which launched an investigation. Owano, who has faced legal troubles in the past, was arrested but later released on bail pending further action from the Office of the Director of Public Prosecutions (ODPP). The DCI is actively pursuing other suspects involved in the case.
“This case underscores the challenges that foreign investors may face in Kenya due to fraudulent schemes exploiting their unfamiliarity with local systems,” stated a DCI spokesperson. “We remain committed to investigating and prosecuting such cases to protect investors.”