At Nakeke, women and children pan for gold in the waters of Singaita River | Credit |Eye Radio

A recent report by SwissAid has alleged that some gold from South Sudan, Ethiopia, the Democratic Republic of Congo (DRC), and possibly Sudan passes through Kenya before being re-exported to Dubai, where it is finally declared for import.

Released late last month, the report reveals that over the past decade, Kenya has grown into a popular smuggling hub for gold, primarily destined for the United Arab Emirates (UAE), particularly Dubai.

According to SwissAid, illicit gold outflows from Kenya likely exceed two tons per year, while declared gold exports were only 672 kilograms in 2023. The report notes that the vast majority of gold entering the country leaves without being officially declared for export.

The report partly stated: “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. Most of the gold smuggled out of Kenya is shipped to Dubai and declared for import there.”

SwissAid further stated that, based on interviews with industry experts and government records, declared gold exports from Kenya often exceed the country’s known gold production and declared imports. This discrepancy leads the NGO to conclude that inbound illicit gold flows are occurring.

The report also highlights that the two licensed medium-scale mines responsible for Kenya’s declared gold production export their material to refiners located in South Africa and Switzerland.

Additionally, reports have surfaced alleging secret gold transactions involving Sudan’s Rapid Support Forces (RSF), suggesting that Sudanese gold is transported through Jomo Kenyatta International Airport en route to Dubai.

In response to growing gold smuggling concerns, Kenya is planning to establish a Mining Police Unit and is advocating for regional certification of gems.

On Monday, June 9, 2025, South Sudan’s Ministry of Mining called for an urgent crackdown on rampant gold smuggling at Juba International Airport, describing the illicit trade as a “major challenge” to the nation.

Matiok Santino Akuei, Undersecretary in the Ministry of Mining, emphasized the negative impact of the illicit mineral trade on the ministry’s operations. He stated,

“The smuggling of gold and precious minerals has become a great challenge for the Republic of South Sudan, undermining our performance.”

Akuei urged law enforcement agencies and relevant stakeholders to immediately report any suspicious activities related to mineral smuggling. He stressed that the Ministry of Mining holds the sole mandate to license all gold and mineral exports.

He warned that any mineral export without proper authorization is illegal and could lead to arrest and prosecution.

To tackle the issue, the ministry recently held a crucial meeting with national and international partners.

Although not fully controlled by the government, the gold mining industry employs tens of thousands of artisanal miners. The majority of these miners are unregistered and operate illegally, despite laws requiring registration with the Ministry of Mining to assign specific mining areas.

This lack of registration complicates monitoring and enforcement of mining regulations.

Locals often use crude traditional methods and equipment to extract gravel and soil, then pan for small gold particles using water. However, the law clearly states that all unlicensed mining activities, including artisanal mining, are illegal.

Many local miners, who have been mining for generations, are unaware of the government’s mandate to regulate the sector.

Across mining sites in South Sudan, government institutions are largely absent, resulting in a lack of monitoring, sensitization, consultation, conflict prevention, and support.

Mining communities feel neglected and believe the government prioritizes company operations over artisanal miners’ welfare.

In 2020, the Bank of South Sudan announced plans to purchase crude gold locally to boost the economy, focusing on Kapoeta, where thousands of artisanal miners operate. However, the plan failed as local miners preferred selling their gold to Somali nationals, who offered prices above the government’s fixed rates.

In South Sudan, local buyers purchase gold from miners and sell it to larger dealers in regional towns such as Kapoeta. From there, dealers transport the gold to Juba by air or road, or across borders to Uganda or Kenya.

Most gold produced in South Sudan is smuggled out of the country. The main supply routes run through Uganda and Kenya and also reach the DRC and Sudan. Many consignments are flown out of Juba.

The gold’s direction largely depends on the nearest border crossings, with Nimule-Elegu and Kaya (towards Uganda) and Nakodok (towards Kenya) being key border posts. Air shipments from Juba primarily head to Kampala, Dubai, and China.