Nairobi Lawyer Arrested In Connection With Sh.182 Million Fake Tender Scam

Detectives from the Directorate of Criminal Investigations (DCI) have arrested Michael Otieno Owano, a Nairobi-based advocate, in connection with a fraudulent tender scam that defrauded an American company of over sh.182 million.

Owano, who heads Owano Michael & Co. Advocates, was apprehended on Monday at Milimani Law Courts after attending a separate criminal hearing.

The arrest follows a complaint filed by the owner of Underground Pipeline Rehabilitation Company, a U.S.-based firm, which alleges that it was duped by a syndicate, including Owano, into paying millions for fake government contracts.

According to the complainant, the scam began when Alvin Alexander, who falsely claimed to be the CEO of Orion AST Company, lured the company to Kenya.

During a series of meetings in Nairobi, the complainant was shown three fraudulent tender documents that appeared to offer lucrative government contracts.

These tenders included:

Tender No KCAA/032/2021-2022 for the supply, installation, and commissioning of Area Control Centre and Disaster Recovery System equipment.
Tender No ICTA/RFP/03/2022-2022 for consultancy services for the design, implementation, and maintenance of an Information Management System.
Tender No MEWNR/T/18/2021-2022 for the supply, delivery, installation, and commissioning of Automatic Weather Stations.

The complainant was then instructed to make payments to various law firms in order to secure the tenders and necessary work permits for the projects.

In total, the company transferred USD 1,617,200 (approximately Ksh.182,743,600). The payments were made to the following firms:

Owano Michael & Co. Advocates: USD 90,000 in legal fees for the first two tenders.
Ollando Misare & Associates, LLP: USD 30,000 in legal fees, plus USD 262,000 and USD 285,000 for bid bonds related to the third tender.
Dennis Onyango & Company Associates: USD 200,200 for work permits for Orion employees.
Ouko Angado Co. Advocates: USD 750,000 for additional work permits for Orion employees.

After the payments, the complainant reports being subjected to months of delays and evasions, with members of the syndicate avoiding contact and blocking scheduled meetings.

Devastated, the complainant eventually reported the fraud to the DCI, prompting an investigation.

Detectives traced Owano, who is no stranger to fraud-related legal troubles.

He was arrested and processed for arraignment but was later released on cash bail while awaiting the approval of charges by the Office of the Director of Public Prosecutions (ODPP).

A DCI spokesperson commented on the arrest, saying, “This case highlights the growing risks foreign investors face in Kenya.

Fraudulent schemes targeting those unfamiliar with local systems are unfortunately becoming more common, but we are committed to tackling such crimes head-on.”