Kenya is at the center of a growing gold smuggling network that involves illegal gold coming from South Sudan, Sudan, and the Democratic Republic of Congo. This is according to a new report released by SwissAid, a non-governmental organisation based in Switzerland.
The report, which was published late last month, shows that over the past ten years, Kenya has become a key route for smuggling gold, with much of it ending up in Dubai, a major gold trading hub in the United Arab Emirates.
The SwissAid report reveals that while Kenya officially reported only 672 kilograms of gold exports in 2023, the actual amount of gold leaving the country without being declared is believed to be more than two tons every year.
This means that the gold trade happening under the radar is several times larger than what is legally recorded. The report explains that a large portion of the gold being smuggled out of South Sudan, the Democratic Republic of Congo, and possibly Ethiopia and Sudan passes through Kenya before being exported to other countries.
What makes the issue more alarming is that this illegal gold trade does not just stop in Kenya. The gold ends up in Dubai, where it is declared as a legal import. This pattern, according to SwissAid, proves that there is a clear trail of illicit gold movement. While the gold may disappear from records in Kenya, it shows up again in official trade figures once it arrives in Dubai, revealing the scale of smuggling happening through Kenyan routes.
SwissAid’s research involved interviews with industry experts and the analysis of government trade records. One of their findings is that the amount of gold declared as imported from Kenya by other countries is often much higher than Kenya’s own reported gold production or imports. This raises concerns that gold is being brought into the country illegally, mainly to be re-exported, making Kenya both a transit and exit point for illicit gold. The report adds that most, if not all, of the gold either produced in Kenya or smuggled in from other countries is later exported, especially to the UAE.
A brief breakdown of how gold from other countries is secretly entering Kenya. Photo courtesy/ Business daily.
According to the findings, gold from Kenya’s small-scale miners, known as ASM (artisanal and small-scale mining), is often not declared and is instead smuggled out through unofficial channels. The two main licensed medium-scale gold mines in Kenya send their gold to refineries in South Africa and Switzerland. This means that the legitimate gold trade is quite small compared to the larger, hidden smuggling operations.
The problem has been made worse by ongoing tensions in Sudan, where gold from the Rapid Support Forces is suspected of being secretly flown to Dubai through Jomo Kenyatta International Airport. This adds to the fears that Kenya’s major airport is being used in illegal international gold trade.
In light of the growing smuggling crisis, the Kenyan government is planning to set up a special Mining Police Unit. It is also looking to introduce a system for regional certification of precious minerals like gold. These efforts are meant to improve oversight, reduce illegal trade, and protect Kenya’s mining sector from being used as a cover for international smuggling operations. However, the report shows that unless there is real political will and strong enforcement, Kenya may continue to play a major role in illegal gold trade across the region.
