Kenya is supporting the smuggling and resale of gold sourced from South Sudan, Sudan and the Democratic Republic of Congo, according to a new report by SwissAid.
The report, released late last month, shows that Kenya has, over the last 10 years, grown as the popular smuggling hub for gold, primarily destined for the United Arab Emirates (UAE), especially Dubai.
According to the report, illicit outflows from the country likely exceed two tons per year; the amount of declared gold exports was 672 kilograms in 2023.
What is troubling is that a vast majority of the gold making its way into the country leaves without being declared for export.
“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,” according to a report.
The report notes, “Most of the gold that is smuggled out of Kenya is shipped to Dubai and declared for import there.”
“In other words, 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.”
Even more, SwissAid, which interviewed industry experts and evaluated government records, says that for most years since 2019, declared imports of gold from Kenya into other countries are higher than Kenya’s gold production and declared imports.
This leads the non-governmental organisation to conclude that there are inbound illicit gold flows. According to their research, most, if not all, of the gold extracted in Kenya or imported into the country is exported.
“Undeclared production from Kenyan ASM is smuggled out of the country and reaches mainly the United Arab Emirates, possibly also Uganda and Tanzania. The two licensed medium-scale mines responsible for Kenya’s declared gold production ship their material to refiners located in South Africa and Switzerland,” says part of the report.
This situation arises as the country navigates challenges with neighbouring Sudan. Reports have surfaced about secret gold transactions involving Sudan's Rapid Support Forces (RSF), suggesting that Sudanese gold is being transported through Jomo Kenyatta International Airport en route to Dubai.
In response to the growing gold smuggling, Kenya is set to establish a Mining Police Unit and is pushing for regional certification of gems.
