A new report by SwissAid, a Swiss-based non-governmental organisation, has accused Kenya of serving as a key hub for the smuggling and resale of gold sourced from conflict-ridden regions in South Sudan, Sudan, and the Democratic Republic of Congo (DRC).
Released late last month, the report highlights Kenya’s growing role over the past decade as a conduit for illicit gold, primarily destined for the United Arab Emirates (UAE), particularly Dubai.
According to the SwissAid findings, Kenya’s declared gold exports in 2023 totalled 672 kilograms, while illicit outflows are estimated to exceed two tonnes annually, much of it undeclared.
The report notes that gold from South Sudan, the DRC, and, to a lesser extent, Sudan and Ethiopia, passes through Kenya before being re-exported, often with fraudulent documentation to obscure its origins.
This illicit trade is facilitated by Kenya’s porous borders and its strategic position as an international transport hub, particularly through Jomo Kenyatta International Airport.
The report further reveals that declared gold imports into other countries from Kenya often surpass the nation’s domestic production and recorded imports, pointing to significant inbound illicit flows.
Most of this gold is reportedly smuggled to Dubai, with smaller amounts heading to India and South Africa.
The trade is said to fuel armed conflicts and organised crime in the region, depriving governments of vital tax revenue.
In response to the growing issue, Kenya is reportedly planning to establish a Mining Police Unit and is advocating for regional certification of gems to curb the illegal trade.