Gold Market in Kenya Guide (Mining, Trading & Export Rules) – 2026

Kenya’s gold market is experiencing rapid growth, particularly in western regions like Kakamega and Migori, where recent discoveries have unlocked billions in potential value.

Gold is traded legally through licensed kenya gold dealers, artisanal miners, cooperatives, and exporters, ensuring compliance with national regulations. Government reforms under the Mining Act of 2016 are enhancing transparency, curbing illegal activities, and attracting investors.

Overview of the Gold Market in Kenya

Kenya’s gold industry has deep historical roots, dating back to the early 20th century when colonial explorers first identified deposits in the western parts of the country. Gold mining in Kenya began modestly in the 1930s and 1940s, with small-scale operations in areas like Kakamega, where British companies established rudimentary mines.

Post-independence, the sector remained largely informal, dominated by artisanal miners using traditional methods. The 1980s saw a brief surge due to global gold price spikes, but lack of investment and regulation kept production low.

Today, the industry is evolving, with official production figures around 358.8 kilograms in 2024, down slightly from previous years, though informal output is estimated to be ten times higher.

The sector is bifurcated between artisanal and small-scale mining (ASGM) and emerging large-scale operations. ASGM accounts for over 90% of Kenya’s gold output, employing more than 250,000 people directly and supporting over 800,000 livelihoods. These miners use basic tools like pans, sluices, and mercury for extraction, often in remote, rural areas where mining coexists with subsistence agriculture. Challenges include mercury pollution, which emits about 2.1 tonnes annually, and informal supply chains that lead to smuggling.

In contrast, large-scale mining is nascent but growing, exemplified by the 2025 discovery in Kakamega County by Shanta Gold Limited, valued at $5.28 billion with 1.27 million ounces of reserves.

This high-grade deposit (11.43 grams per tonne) signals Kenya’s potential as a mining powerhouse, attracting foreign investment from companies like those in the UK.

Economically, mining contributes about 0.7% to Kenya’s GDP, with goals to reach 10% by 2030 through Vision 2030 initiatives. Gold exports reached $191 million in 2022, driven by rising global prices and demand from jewelers, electronics manufacturers, and investors.

The sector stimulates rural economies, creates jobs, and funds infrastructure, but it also faces hurdles like environmental degradation and revenue losses from illicit trade.

Reforms, including the establishment of a national gold refinery in Kakamega, aim to formalize ASGM, boost value addition, and integrate Kenya into global supply chains.

With underexplored reserves, the industry offers opportunities for sustainable growth, particularly in green mining technologies and community development agreements.

Major Gold Mining Areas in Kenya

Kenya’s gold deposits are primarily concentrated in the western and northern regions, shaped by geological formations like the Busia-Kakamega greenstone belt. These areas host a mix of artisanal and emerging commercial operations, with recent explorations revealing high-potential sites.

Below is a detailed look at the major regions, including mining types, gold quality, and output where data is available.

Kakamega County

Kakamega is Kenya’s gold mining epicenter, home to the landmark Isulu-Bushiangala project in the Lirhanda Corridor. This area features both artisanal and large-scale mining, with the 2025 discovery of 1.27 million ounces valued at $5.28 billion highlighting its commercial viability.

Gold quality here averages 11.43 grams per tonne, among the highest in East Africa. Artisanal output is informal but significant, supporting thousands of locals.

Commercial operations by Shanta Gold include plans for a processing plant and infrastructure, potentially yielding thousands of kilograms annually.

Migori County

Located near Lake Victoria, Migori is a hub for artisanal mining, with operations in areas like Macalder and Osiri. Miners extract alluvial and vein gold using mercury amalgamation, producing gold of 90-95% purity.

Annual output is estimated at hundreds of kilograms, though much is unreported due to smuggling to Tanzania. Environmental concerns, including land degradation, are prevalent, but cooperatives are formalizing activities.

Siaya County

Siaya’s gold fields, part of the Lake Victoria gold belt, focus on artisanal placer mining. Gold quality is moderate (85-90% purity), with small-scale output supporting local economies. Recent geo-surveys indicate untapped veins, attracting investor interest.

Narok County

In Narok, gold mining is emerging in the Transmara region, blending artisanal methods with pastoral livelihoods. Deposits are alluvial, with purity around 92%. Output is low but growing, with potential for commercial expansion amid Maasai community involvement.

Vihiga County

Adjacent to Kakamega, Vihiga shares the greenstone belt, featuring artisanal hard-rock mining. Gold grades are high (up to 99%), but production is limited by informal practices. The area benefits from proximity to Kakamega’s refinery plans.

Region	Type of Mining	Gold Quality (Purity/Grade)	Estimated Annual Output (kg)	Key Notes
Kakamega	Artisanal & Large-Scale	97-99% / 11.43 g/t	500+ (potential 1,000+ with commercial ops)	Major discovery; infrastructure development ongoing.
Migori	Primarily Artisanal	90-95%	200-400	High smuggling risk; cooperatives active.
Siaya	Artisanal	85-90%	100-200	Untapped veins; community-focused.
Narok	Artisanal	92%	50-100	Emerging; cultural integration needed.
Vihiga	Artisanal	Up to 99%	100-150	Proximity to Kakamega boosts potential.

These regions underscore Kenya’s gold potential, but sustainable practices are essential for long-term viability.

Gold Trading & Buying Centers in Kenya

Gold trading in Kenya is centralized in key hubs, blending formal dealerships with regional markets. Licensed dealers ensure legality, while cooperatives empower artisanal miners. Only Kenyan citizens or entities with at least 60% local ownership can hold artisanal permits, but foreigners can invest through joint ventures.

Nairobi: The National Hub

Nairobi serves as the epicenter for licensed dealers and exporters. Areas like Eastleigh and the CBD host refineries and trading firms such as Afriswiss Commodities and Gold Bar Suppliers.

Buyers can access refined gold bars or dust, with transactions requiring due diligence. The city’s bonded warehouses facilitate secure storage and international deals. Foreigners must use verified dealers to avoid scams.

Kisumu & Migori: Regional Trade Hubs

Kisumu, near Lake Victoria, is a gateway for western Kenya’s gold, with markets linking miners to buyers. Migori, a mining hotspot, features cooperatives like those in Macalder, where raw gold is traded daily. These hubs handle artisanal output, with prices influenced by local demand. Role of cooperatives: They aggregate gold, negotiate better rates, and promote formalization, reducing smuggling.

Legal buyers include licensed dealers under the Mining Act; tourists can purchase jewelry but must declare exports. For safety, use reputable centers like Karebe Gold Mining in Kisumu.

Gold Prices in Kenya

Gold prices in Kenya are influenced by global market trends, local supply dynamics, currency fluctuations, and regulatory factors. The international spot price, currently around $4,326 per ounce, sets the baseline, but local premiums add 5-10% due to transport and refining costs. In KES, prices hover at 19,350 per gram, up 1.48% in the last week.

Factors affecting prices:

Global Influences: Geopolitical tensions, inflation, and central bank buying (e.g., Kenya’s plans to diversify reserves) drive up demand.
Local Factors: Mining output, smuggling, and policies like the Mining Act impact supply. KES depreciation against USD raises local prices.
Jewelry vs. Bullion: Jewelry includes craftsmanship premiums (10-20%), while bullion is closer to spot.

Type	Global Price (USD/oz)	Local Price (KES/g)	Notes
Bullion	$4,326	19,350	Spot + 5% premium.
Jewelry	$4,500+	20,000+	Includes making charges.
Raw Dust	$4,000	18,000	Discounted for impurities.

Legal Framework & Regulation

The Mining Act of 2016 is the cornerstone of Kenya’s gold regulation, vesting mineral rights in the national government while promoting sustainable development. The Ministry of Mining oversees licensing, with the Mineral Rights Board advising on approvals.

Key elements:

Licensing: Artisanal permits for locals; small-scale and large-scale licenses require technical competence, EIAs, and community agreements.
Export Permits: Issued by the Director of Mines; includes royalties (5-10%) and taxes.
Compliance: Bans on mercury use in ASGM; crackdowns on illegal trade via geo-surveys and smuggling as an economic crime.

This framework builds trust, with penalties for non-compliance including fines and imprisonment.

Gold Export Market in Kenya

Kenya’s gold exports target UAE, Switzerland, and India, with $191 million in 2022. Procedures: Obtain export permit, Certificate of Origin, pay royalties (5-6%), and duties (3.5% IDF + 2% RDL). Documentation includes assay certificates and KRA clearance. For CIF transactions, use Form C17 to avoid local taxes. Challenges include smuggling, but reforms aim to boost formal exports.

Challenges in Kenya’s Gold Market

Illegal mining and smuggling drain revenues, with 80-98% of DRC gold transiting Kenya. Price manipulation by cartels, limited refining (e.g., no national facility until 2026), and environmental issues like mercury pollution persist. Formalization efforts are underway, but border vulnerabilities exacerbate problems.

Opportunities & Future of Gold in Kenya

Reforms lift licensing bans, with the $5.28B Kakamega discovery attracting FDI. Investor interest in lithium and rare earths complements gold; new refineries and infrastructure plans formalize ASGM. By 2030, mining could contribute 10% to GDP, with sustainable tech driving growth.

Common Scams & How to Buy Gold Safely in Kenya

Scams include fake dealers with forged licenses, underweight bars, and non-delivery. Tips: Verify Mineral Dealer’s License, use assays, avoid upfront fees, consult lawyers. Buy from licensed hubs like Nairobi’s Afriswiss.

Can Kenyan Gold Be Refined or Sold in Dubai or UAE?

Yes, Kenyan gold is often exported to UAE for refining, with Dubai as a major hub. Procedures involve export permits and UAE compliance. Link to our Gold Refineries in UAE article for details.