New report flags Kenya as key hub in regional gold smuggling network

Kenya has emerged as the primary conduit for illicit gold trade in East Africa, acting as a key transit and resale hub for smuggled gold originating from conflict-ridden neighbouring states.

A new report by SwissAid reveals that Kenya’s involvement in the illegal gold supply chain has expanded consistently over the last ten years, with the bulk of the precious metal eventually finding its way to the United Arab Emirates, especially Dubai.

According to the report, a large portion of gold smuggled through Kenya is exported to Dubai, where it is formally declared upon arrival.

It further identifies Kenya as a major trafficking route for gold sourced from conflict-affected nations such as South Sudan, Sudan, and the Democratic Republic of Congo.

“Part of the gold that is smuggled out of South Sudan, the Democratic Republic of Congo, and, to a lesser extent, Ethiopia and possibly Sudan, passes through Kenya before being re-exported,” the SwissAid report stated.

Although government records indicate that just 672 kilograms of gold were officially exported from Kenya in 2023, SwissAid estimates that over two tones are trafficked out of the country each year without proper declaration.

This significant gap suggests widespread smuggling that evades state oversight.

The report also raises alarm over a pattern observed since 2019, where Kenya has consistently reported gold exports exceeding its own production capacity and declared imports.

The report suggests that Kenya functions not only as a key exit point but also as a recipient of illicit gold inflows, further entangling its mineral oversight systems. “One can be confident about the existence of sizeable outbound illicit gold flows because this gold resurfaces further down along the value chain and becomes visible there through official statistics,” it noted.

The majority of the smuggled gold is re-exported, mainly to the United Arab Emirates, with possible rerouting through neighboring countries like Uganda and Tanzania.

Dubai's official import data confirms the presence of gold linked to illicit trade routes through Kenya, underscoring the magnitude of the smuggling network.

The report also places Kenya's situation within a broader regional context, noting that Uganda and Rwanda similarly list gold among their top exports despite persistent allegations of benefiting from conflict minerals sourced from the Democratic Republic of Congo.

Like Kenya, Uganda grapples with rampant illegal artisanal mining and cross-border smuggling issues that not only drain government revenues but also harm local communities.

In light of these revelations and increasing pressure to curb illicit mineral trade, the Kenyan government is now moving to bolster oversight by forming a specialized police unit to monitor and regulate the sector.