Faith Nyasuguta
Kenya has become a key transit point in a vast network of illegal gold smuggling across Africa, with much of the gold passing through its borders originating from conflict-affected countries such as South Sudan, the Democratic Republic of Congo (DRC), and parts of Ethiopia and Sudan.
A new report by SwissAid, a Swiss-based development and resource justice organization, sheds light on the growing role Kenya plays in facilitating the movement of unregulated gold across the continent.
Despite Kenya’s modest official gold exports, just 672 kilograms reported in 2023, the actual volume of gold passing through the country is believed to be far higher, potentially exceeding two tons annually. Most of this gold is undocumented, smuggled, and moved out of countries suffering from political instability, poor governance, and ongoing conflict.
According to SwissAid, Kenya acts both as a source and transit hub in this illegal trade. The report notes that “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 ultimately re-exported.” Once the gold reaches Kenyan soil, it is shipped to international markets under a veil of legitimacy.
A significant portion of Kenya’s own gold comes from artisanal and small-scale mining (ASM), a mostly informal sector that operates outside government regulation. This lack of oversight makes it difficult to track the origin, quantity, and sale of gold extracted in Kenya, allowing smuggling networks to operate with little resistance.
The report also highlights the international routes taken by the smuggled gold. Much of it is flown to Dubai, where it is formally declared upon entry. Other key destinations include India and South Africa. The trade routes vary, but they consistently exploit Kenya’s relatively robust infrastructure and less stringent export controls compared to other countries in the region.
Even gold mined within Kenya itself, mainly from two licensed medium-scale mining operations, is almost entirely destined for export, typically to refineries in South Africa and Switzerland. The report implies that while legal mining and export do occur, they are vastly overshadowed by illicit activities within the wider gold sector.
The implications of this underground trade are severe. A previous SwissAid report warned that revenues from the illegal gold trade are not just lost to governments but are actively funding criminal enterprises. The profits help finance armed conflicts, support terrorist operations, undermine democratic governance, and promote widespread money laundering.
The lack of transparency in Kenya’s gold sector poses a major challenge. Without robust tracking mechanisms and tougher enforcement of mining and export laws, Kenya risks becoming even more central in a trade that continues to destabilize the region. The country is now under increasing pressure to reform its regulatory frameworks, crack down on illegal gold networks, and enhance regional cooperation to stop the flow of conflict gold.
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