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NAIROBI – A bombshell report by SwissAid, a leading non-governmental organisation, has cast a dark shadow over Kenya, alleging the East African powerhouse has become a major hub for the smuggling and resale of illicit gold sourced from war-torn South Sudan, Sudan, and the Democratic Republic of Congo (DRC). The findings, released late last month, paint a troubling picture of a thriving underground economy that sees vast quantities of undeclared gold flowing through the country, primarily destined for the glitzy markets of the United Arab Emirates, particularly Dubai.
The report, a culmination of interviews with industry experts and rigorous analysis of government records, reveals that over the past decade, Kenya’s role as a conduit for this illegal trade has ballooned. SwissAid estimates that illicit gold outflows from Kenya now likely exceed a staggering two tons per year, a stark contrast to the mere 672 kilograms of gold officially declared for export in 2023.
The most disturbing revelation is the sheer volume of gold that enters and leaves Kenya without ever being declared to authorities. “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,” the report states. Crucially, “Most of the gold that is smuggled out of Kenya is shipped to Dubai and declared for import there.” This “mirror data” – where importing countries declare more gold from Kenya than Kenya officially exports – provides undeniable evidence of a massive, undeclared flow of the precious metal.
SwissAid’s investigation further indicates that for most years since 2019, declared imports of gold from Kenya into other countries have consistently outstripped Kenya’s own reported gold production and declared imports, strongly suggesting the existence of significant “inbound illicit gold flows” as well. This implies that not only is gold being smuggled out of Kenya, but it’s also entering the country illegally, much of it likely originating from artisanal and small-scale mining (ASM) operations within Kenya itself, which largely operate outside official channels.
While Kenya’s two licensed medium-scale mines reportedly ship their declared gold to reputable refiners in South Africa and Switzerland, the vast majority of the undeclared gold from Kenyan ASM operations is smuggled out, primarily to the UAE, and possibly to Uganda and Tanzania.
The timing of this report adds another layer of complexity, particularly given President William Ruto’s past engagements. An image accompanying the report shows President Ruto holding talks with General Mohamed Hamdan Dagalo, leader of Sudan’s Rapid Support Forces (RSF), at State House, Nairobi, on January 3, 2023. This meeting has previously drawn scrutiny, with some alleging that Nairobi could be implicated in facilitating gold transactions linked to the conflict in Sudan.
The SwissAid report serves as a stark reminder of the corrosive impact of illicit gold trade, which not only deprives African nations of much-needed revenue but also fuels instability and conflict in resource-rich regions. The revelations place immense pressure on the Kenyan government to tighten controls and enhance transparency within its mineral sector to stem this haemorrhage of wealth and ensure that its role in regional trade upholds international standards of accountability.
