Kenya Named as Major Transit Hub for Smuggled Gold

Kenya has been named as a major transit hub for smuggled gold from conflict-ridden regions including Sudan,South Sudan,and the Democratic Republic of Congo (DRC), according to a new report by Swiss Aid, a non-governmental organization focused on transparency in resource extraction and development.

The report estimates that over two tonnes of gold pass through Kenya annually via undeclared and illicit channels, a figure that starkly contrasts with the country’s official gold exports of just 672 kilograms in 2023.

The bulk of this unaccounted-for gold is reportedly headed for Dubai, raising red flags about the integrity of global gold supply chains.

Swiss Aid further alleges that Kenyan smuggling networks benefit from political protection, complicating efforts by law enforcement agencies to clamp down on the illicit trade.

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Controversially, the report recommends involving Sudan’s Rapid Support Forces (RSF) in addressing underground gold transactions within Kenya a suggestion likely to draw criticism given the RSF’s own controversial role in Sudan’s ongoing conflict.

The United Arab Emirates (UAE), and Dubai in particular, is identified as a primary destination for Kenya’s gold exports, accounting for 97 percent of officially reported shipments.

However, Dubai’s gold refineries are accused of failing to verify the origin of gold, thereby facilitating the laundering of conflict minerals through international markets.

Kenya’s growing role in this underground trade has raised concerns among neighboring countries and international regulators, including the London Bullion Market Association (LBMA) and major refiners in South Africa and Switzerland, who are now placing Kenyan gold under increased scrutiny.