Advocate implicated in Sh61.8M gold fraud released on bail

06, Aug 2026 / 3 min read / By Rhoda Bogeta

A Milimani court has released Advocate of the High Court Alphonce Collins Odoyo Osewe on a bond of KSh1 million with one surety of a similar amount, or an alternative cash bail of KSh300,000, after he pleaded not guilty to multiple counts of obtaining money by false pretences and money laundering.

Osewe took plea before Milimani Chief Magistrate Gethi Kibiru, who ruled on August 6, 2026, that the prosecution had failed to establish compelling reasons to deny him bail.

According to the charge sheet, Osewe and his co-accused, Patroba Odhiambo Tobias alias "Ishmael", are jointly charged with obtaining USD 260,400, equivalent to KSh35.37 million, from Bernard Shaunda Aete between May 1 and May 9, 2023 by falsely pretending they were in a position to sell him 400 kilograms of gold bars.

Osewe also faces a separate count of obtaining KSh26.1 million from Adeyeye Enitan Ogunwusi between May 4 and May 5, 2023 through the same alleged false representation.

The two are further charged with acquisition of proceeds of crime and use of proceeds of crime contrary to the Proceeds of Crime and Anti-Money Laundering Act. 

The prosecution alleges that they acquired and transacted the funds knowing, or having reason to believe, that they were proceeds of crime.

The prosecution opposed the advocate's release on bail, arguing that he was a flight risk after allegedly failing to attend court for nearly one year despite being aware of the criminal proceedings.

Investigating Officer CPL Dennis Mugambi, in an affidavit, told the court that Osewe was arrested in August 2025 and released on police cash bail pending legal advice from the Office of the Director of Public Prosecutions.

The officer stated that after the charges were approved, Osewe failed to honour court summons, prompting the court to issue warrants of arrest.

He further alleged that the accused evaded arrest until August 4, 2026, and had vacated his known residence, making his whereabouts unknown.

The prosecution also argued that Osewe had claimed to be outside the country during the period he was required to attend court and that investigations into his travel history were necessary to verify the claim.

The defence, however, maintained that the advocate's absence was due to ill health and informed the court that he had been receiving treatment in India.

Counsel submitted that medical and travel documents had been filed before the court to explain his absence, a fact the prosecution acknowledged.

In his ruling, Magistrate Kibiru traced the history of the case and noted that counsel for the first accused had consistently appeared before court and explained his client's absence.

The court observed that the prosecution had informed the court on several occasions that the police file was under review before later seeking warrants of arrest against the accused.

The magistrate further noted that although the prosecution had been directed to verify the medical documents produced by the defence, no report had been filed more than three months after the order.

"The court is not persuaded that the prosecution has established compelling reasons to warrant the denial of the accused's constitutional right to bail," Magistrate Kibiru ruled.

The court found that Osewe's absence had consistently been explained through counsel and that the medical and travel documents, though unverified, constituted prima facie evidence of his whereabouts.

The magistrate held that the prosecution had failed to demonstrate that the advocate had deliberately absconded court or that compelling reasons existed to justify the denial of his constitutional right to bail.

The court consequently released Osewe on a bond of KSh1 million with one surety of a similar amount, or an alternative cash bail of KSh300,000.

As part of the bail terms, the advocate was directed to provide his current physical and postal address together with active telephone contacts.

He was also ordered to attend court whenever required unless excused and, where unable to attend due to illness, promptly notify the court through his advocate and provide supporting medical documents.

The magistrate warned that failure to attend court without lawful excuse would lead to the cancellation of the bail terms and the issuance of a warrant of arrest.

The matter will be mentioned on September 9,2026 for  further court directions

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    Category: Crime & Justice

    Author: Rhoda Bogeta

    About the Author

    Rhoda Bogeta is a Kenyan journalist and multimedia storyteller covering current affairs, human-interest, science and environmental stories, with expertise in reporting, photography, videography and digital content creation. Email: rhodabogeta@gmail.com Instagram : i_am_bogetar X : @I_am_Bogetar LinkedIn: Rhoda Bogeta Tiktok : monique.mora_

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