Kenya is increasingly being identified as a major transit route for gold smuggled from conflict-ridden African countries, with watchdog groups warning that the country’s informal mining sector and porous regulatory systems are making it vulnerable to exploitation by criminal networks.
A newly released report by SwissAid, a global organization focused on natural resource governance, highlights Kenya’s growing role in the unregulated gold trade, particularly gold originating from nations such as South Sudan, the Democratic Republic of Congo (DRC), Ethiopia, and Sudan — some of which are currently affected by conflict and weak institutional control.
Despite reporting only 672 kilograms of official gold exports in 2023, independent estimates suggest more than two tons of gold pass through Kenya each year undetected by authorities.
“Gold is entering Kenya informally, primarily from war-torn or unstable regions, and is later exported abroad under the guise of being domestically sourced,” the report noted.
Dubai: A Key Destination
Most of the smuggled gold is reportedly re-exported to Dubai, where it is officially declared upon entry. Other known destinations include India and South Africa.
While Kenya does have two licensed medium-scale gold mines, most of the country’s gold production stems from artisanal and small-scale mining (ASM) — a sector that remains largely unregulated and undocumented. This gap provides ample opportunity for gold to be laundered through Kenya under a legal façade before being sent to international markets.
Conflict, Corruption, and Consequences
Analysts warn that this shadow trade not only deprives African governments of critical revenue, but also finances armed groups, supports terror networks, and weakens democratic institutions by enabling corruption and large-scale money laundering.
“Gold, when left unregulated, becomes a tool of war rather than development,” said a Kenyan resource governance expert who reviewed the report. “Kenya risks becoming a corridor for conflict minerals unless urgent reforms are introduced.”
Call for Regional Cooperation
SwissAid and local civil society organizations are calling for greater regional coordination to monitor and trace gold flows, particularly in border regions where enforcement remains minimal. They also urge Nairobi to strengthen oversight of Kenya’s domestic gold supply chain and adopt modern traceability mechanisms in line with international standards.