Kenya Moves to Centralise Gold Exports in Crackdown on Smuggling
Business Updated: 14 April 2026 08:59 EAT
Photo Courtesy. Refined gold
Kenya is planning a major overhaul of its gold trade by introducing a single export channel aimed at curbing widespread smuggling and improving oversight of the mineral sector.
Under the proposed reforms, all gold produced in the country will first be sold locally through a controlled system before being exported, marking a significant shift from the largely informal structure that has dominated the industry.
Officials say the move will allow the government to track gold volumes more accurately and ensure that exports are properly documented, taxed, and accounted for.
The plan involves consolidating exports under one agency or channel, effectively making it the sole authorised exporter of gold from Kenya.
According to the Ministry of Mining, the reform is designed to eliminate illicit trade networks that have long enabled gold to leave the country undetected.
Authorities argue that requiring all gold to be sold domestically before export will create a transparent chain from production to international markets, improving traceability.
The government also aims to use the new system to boost foreign exchange earnings by ensuring that export proceeds are captured within the formal economy.
Officials have indicated that gold could increasingly be treated as a strategic asset, with the potential to strengthen Kenya’s foreign reserves and support the stability of the shilling.
Data shows that Kenya’s official gold reserves remain relatively small despite ongoing production, highlighting the gap between recorded output and actual trade flows.
Recent figures indicate that while the country produces significant quantities of gold annually, much of the trade is believed to pass through informal or unregulated channels.
The new framework will integrate artisanal, small-scale, and large-scale miners into a structured supply chain involving licensed dealers, processors, and refineries.
Gold will be processed locally to meet international standards before being exported through the centralised system, ensuring quality control and compliance.
A key component of the plan is the establishment of a major gold refinery in Kakamega, which is expected to act as a national aggregation and processing hub.
The refinery will enable Kenya to upgrade raw gold to high purity levels and retain more value domestically before export.
The reforms come amid growing concerns over Kenya’s role as a transit hub for smuggled gold from conflict-prone regions in Africa, as well as recent high-profile smuggling cases involving Kenyan nationals abroad.
By centralising exports and tightening controls, the government hopes to formalise the sector, increase revenues, and position gold as a key pillar of the country’s economic strategy.
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FELIX MAKONA
FACT FINDER AND DATA DRIVEN JOURNALIST. DATA MINING AT IT'S BEST. GET FACTS RANGING FROM MATTERS DISABILITY AND INCLUSION, POLITICS, ECONOMY, SPORTS AND GENERAL NEWS AROUND THE WORLD