A new report by SwissAid has placed Kenya as a major transit hub for smuggled gold from conflict-ridden countries of Sudan, Southern Sudan and the Democratic Republic of Congo (DRC).
Kenya’s gold export outrageously exceeds that which enters the country through formal trade and that produced locally.
While the government declared only 672 kilograms of gold exports in 2023, the report estimates that over two tons — possibly far more — are illegally trafficked through Kenya annually.
The report noted that gold-rich areas of the DRC, Sudan and Southern Sudan are under control of armed militia who take advantage of their weak governments to smuggle gold to the lucrative Kenyan market.
The report further ascertained that most of Kenya’s gold production stems from informal, small-scale mining, largely unregulated and invisible to government statistics.
Nairobi and Jomo Kenyatta International Airport serve as key conduits in this trade, with Dubai, India, and South Africa as common destinations.
SwissAid’s analysis of trade data shows a consistent mismatch: gold declared by importing countries as coming from Kenya significantly outweighs Kenya’s reported exports. This confirms the country’s role as both an origin and transit point for smuggled gold.
Illicit revenues are believed to finance criminal and terrorist networks and enable money laundering. Though Kenya introduced legislation in 2023 to formalize the sector, it has yet to take effect.
A new gold market in Eastleigh, touted as “the largest gold souk in East and Central Africa,” and a proposed refinery in Kakamega may help formalize the trade — but experts warn that political complicity remains a major obstacle.
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