By Simba Munyua
Nairobi, Kenya – A new report by SwissAid has identified Kenya and Rwanda as major hubs for gold smuggling in East Africa, facilitating the illicit trade of precious metals from neighboring countries and costing the continent millions in lost revenue. The report highlights that gold originating from conflict-affected regions like South Sudan, the Democratic Republic of Congo (DRC), and, to a lesser extent, Ethiopia, often transits through these two nations before being smuggled abroad.
The SwissAid report paints a concerning picture of Kenya’s role in the international gold trade. While Kenya is a gold producer in its own right, it also functions as a crucial transit point for smuggled gold destined for the United Arab Emirates (UAE).
“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 ultimately re-exported. In other words, Kenya acts as a transit hub for gold from neighboring and nearby countries,” the report states.
Adding to the issue, the report alleges that a significant amount of gold mined by artisanal and small-scale miners (ASM) within Kenya is smuggled out of the country without proper declaration. This undeclared gold primarily finds its way to the UAE, with potential links to Uganda and Tanzania. This contrasts sharply with the Kenyan government’s official 2023 figures, which reported 672 kilograms of gold exports, while SwissAid estimates the actual figure to be closer to two tones annually.
The discrepancy between reported and estimated export figures indicates widespread underreporting and illicit activity. This systematic smuggling not only deprives Kenya and its neighbors of vital tax revenues but also fuels criminal networks involved in the illegal trade.
The situation in Rwanda mirrors that of Kenya, further cementing the East African region as a key player in the global gold smuggling landscape.
In response to the growing problem, the Kenyan government, under the Kenya Kwanza administration, has announced plans to establish a specialized mining police unit to combat gold smuggling and related illegal activities.
This announcement follows recent efforts by the Directorate of Criminal Investigations (DCI) to crack down on gold scamming syndicates. In April, the DCI announced the arrest of 11 suspects allegedly involved in defrauding a client of approximately KSh 70 million. During the operation, detectives recovered 305 kilograms of fake gold, along with testing equipment and weighing scales, from a property in Spring Valley Estate.
While these recent actions signal a commitment to combating gold smuggling, the newly released SwissAid report underscores the immense scale of the problem and the urgent need for comprehensive and coordinated efforts to address the issue at both national and regional levels. International cooperation will be crucial in curbing this illicit trade and ensuring that the benefits of Africa’s natural resources are realized by its citizens, not criminal enterprises.
