A Dubai-based company, SH Trading DMCC, has taken legal action against Kenyan gold trading firm Kerongwe & Sons General Traders Ltd and its CEO, John Kerongwe Mwita. The lawsuit demands a refund of Sh63 million, which was paid for a gold shipment that never arrived.
The Deal Gone Wrong
In June 2024, SH Trading DMCC agreed to purchase 700 kilograms of gold for $489,950 (approximately Sh63.24 million). Delivery was scheduled for June 5, 2024, in Dubai. The gold, however, never left Kenya, leaving the Dubai firm empty-handed and frustrated.
According to SH Trading DMCC, Kerongwe & Sons was introduced to them via contacts at Kenya’s Ministry of Mining. The gold was physically inspected in Spring Valley, Nairobi, and its authenticity verified with an evaluation certificate issued on May 24, 2024. After confirming the deal, payments were made through a combination of bank transfers, cash, and wallet transactions.
Promises Turn to Dust
Despite assurances and documented agreements, the gold shipment failed to materialize. SH Trading DMCC now accuses Kerongwe & Sons of breaching the contract, causing significant financial losses. The Dubai firm claims the failure to deliver the gold disrupted their business operations, including their supply chain for the medical sector, and has cost them an estimated $28 million (Sh3.61 billion) in losses.
Legal Battle for Justice
The case has now reached Kenyan courts, where SH Trading DMCC is seeking:
- A full refund of Sh63 million.
- Interest on the amount owed.
- Compensation for damages resulting from the breach of contract.
Photographs, videos, and other evidence of the gold bars presented by Kerongwe & Sons have been submitted to the court as part of the case.
A Warning for Gold Traders
This lawsuit highlights the high risks involved in international gold trading, emphasizing the need for thorough due diligence. For now, SH Trading DMCC remains locked in a legal battle, hoping to recover its funds and resolve a golden deal that went disastrously wrong.
