Three men suspected of being part of a syndicate involved in illegally unlocking smartphones sold on credit and reselling them have been charged before a Nairobi court.

The accused Jeremiah Njoroge, Marvine Wanguno, and Victor Kimani are alleged to have participated in a scheme to bypass the digital locks on phones financed through M-Kopa, Mophone Kenya Limited, and Watu Credit, before customers had completed their loan repayments.

The three were arraigned before Milimani Magistrate Dolphina Alego on Wednesday, where they pleaded not guilty to five counts of theft and handling suspected stolen smartphones valued at more than Sh3.8 million. 

The Office of the DPP informed the court that the trio is part of a well-organised phone unlocking syndicate operating within Nairobi’s electronics black market.

Once illegally unlocked, the smartphones are allegedly resold in the second-hand market, often without the knowledge of rightful owners whose phones are stolen or the lending institutions.

According to the charge sheet, the suspects were arrested following a tip-off, on August 4, 2025 at Intermac Business Center along Tom Mboya Street. 

DCI detectives told the court that the three were caught red-handed with several locked smartphones in the process of being illegally unlocked, a security breach that strips the lender’s control from a phone meant to be repaid over months. 

“The accused persons here in were caught in the act, with several smartphones in the process of being unlawfully unlocked, a move that disables the lender’s digital lock meant to secure the device until full repayment is made. The phones are programmed with remote locking systems that disable functionality if loan payments are missed,” said the state prosecutor.

“What this syndicate is doing is cracking that software, rendering the phones usable again, and then selling them in second-hand markets across the city.”

The court heard that the suspects had also been helping some Kenyans avoid paying for phones bought on credit, or stealing the devices outright from lenders. 

The syndicate is believed to have targeted high-end models, including the Samsung Galaxy S24, Note 20 Ultra, A13, and a rare Nokia GS0.  

They are accused of allegedly stealing nine smartphones from two mobile financing firms on August 4, 2025, at Intermac Business Center in Nairobi. 

The first charge states that they jointly stole six devices, including Samsung A13, Samsung A12, Samsung A03s, Samsung S24, and a Nokia GS0, all belonging to M-Kopa Kenya Limited valued at Sh800,000.

In a related count, they are accused of stealing three other phones from Mophone Kenya Limited on the same day, namely a Samsung Note 20 Ultra, a Samsung Galaxy S23 Ultra, and another Samsung Note 20, whose total value is Sh1 million.

The prosecution also pressed an alternative charge of handling stolen goods, contrary to Section 322(1) as read with Section 322(2) of the Penal Code.

The particulars state that on August 4, 2025, at the same business centre, they dishonestly received or retained four mobile phones, including Samsung A04s, Samsung A05, and two Samsung A03s, valued at Sh 1.2 million, the property of Watu Credit.

The state told the court that the accused received or retained the devices knowing or having reason to believe they had been unlawfully obtained.

After denying the charges, defence lawyers pleaded for lenient bail terms, arguing that the proposed Sh1 million cash bail was punitive and beyond the means of their clients.

They also requested a pre-bail report. 

However, Magistrate Alego ruled that each accused be released on Sh2 million bond or Sh1 million cash bail.

The matter will be mentioned for pre-trial on August 27, 2025.