Flamboyant businessman Jared Otieno has been arrested by detectives in Nairobi after he surrendered on Thursday over fake gold business.

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For several weeks now, Otieno has been under police surveillance after a Chinese national reported him over Sh300 million gold deal. He's said to have defrauded the foreigner.

DCI boss George Kinoti said the businessman, who has been arrested several times before, surrendered when he learnt that police were after him.

DCI boss George Kinoti said detectives seized Otieno's Porsche and Bentley that were parked at his new, ritzy home in Karen, Nairobi.

“He has been arrested and we are looking for more suspects in this issue,” he said.

According to Kinoti, Otieno was identified in the CCTV cameras installed at a house in Kileleshwa where police on Monday seized fake golds.

The crackdown was ordered by President Uhuru Kenyatta after a Dubai Royal complained of being conned sh400 million in a gold deal that didn't materialise.

But according to Otieno, he surrendered because he's not aware why the police were after him. He said he was ready for any action.

“I don’t know what I have done but I have surrendered to the police. I am ready for any action for now,” he said.

Several people have been dragged to the fake gold syndicate where Mr Otieno is believed to be the ring leader. A Kisii politician, Zaheer Jhanda, has also been adversely mentioned in the fraudulent business.

Kinoti urged Embassies and High Commissions to advise their nationals coming in for business.

"The gold scam has now reached alarming levels as unsuspecting foreign nationals are being swindled large amounts of money by fraudsters," he said.