Two people were arrested in Kalama, Marsabit County, on Tuesday, after they were found with 4.6 kilograms of gold bars and 50,150 Euros, which translates to Ksh5.7 million.
The Milimani Senior Resident Magistrate, Zainab Abdul heard that Issa Mohammed Dubbow and Yunnis Maalim Muktar were arrested by the police from the Transnational organised Crimes Unit at a roadblock on the Isiolo-Moyale route on March 13.
"Police suspect the two to be gold smugglers and dealers in laundered money," and an investigating officer, Seargent Stanley Musembi told the court.
He added he was investigating the money laundering and smuggling of gold from neighbouring countries.
Reports from Daily Nation indicate the police need to establish where the two were getting the money from.
"Police have crucial information that the phones have crucial data which needs to be verified by officers from the Cyber Crimes Unit," he added.
The sergeant also stated the gold would be taken to the mines and geology department for verification.
The court heard that Musembi would contact Interpol for help to establish the possibility of international connections in the case.
The magistrate, therefore, acknowledged investigators needed more time to finish investigations.
She further stated that Mohammed and Maalim would be held at Muthaiga Police Station.
"After the lapse of the 10 days you will be returned to court for further legal processing," she added.