DCI detectives on Monday raided an apartment in Nairobi's Kileleshwa area and impounded fake gold and eight cars.
Some 15 suspects were arrested.
Other items were also recovered from the house which was guarded by the GSU officers.
The DCI said in a tweet that the vehicles and suspected fake gold was used to con members of the public.
Last Thursday, a businessman suspected of defrauding a Dubai royal by pretending they could sell him gold was arrested by police at Lavington Mall.
The arrest comes days after DCI boss George Kinoti via his Twitter account 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.
“DCI attention has been drawn to an upsurge in criminal cases involving the procurement and sale of gold the country. The Gold Scam has now reached alarming levels as unsuspecting foreign nationals are being swindled large amounts of money by the fraudsters,” DCI added.
Last month, eight suspects were arrested by DCI detectives in Kiboko, Mukoma road and recovered millions of fake US Dollars and fake golds.
Among them are four foreigners- one Congolese, two Tanzanians, one Nigerian and four Kenyans.
The foreigners are; Ruhota Kabagale (Congolese), Manson Chogga Mtassi(Tanzanian), Chukunosho Francis Ogbuanu(Nigerian), Konie Kalist (Tanzania).
