Kenya plans to centralise its gold exports under a single agency as part of reforms aimed at curbing smuggling and boosting foreign exchange earnings from the mineral. Under the proposed changes, all gold produced in the country will be sold domestically through a tightly controlled system before export, giving the State visibility over volumes in a sector long dominated by informal trade.Officials in the Ministry of Mining, Blue Economy and Maritime Affairs say the shift is designed not only to clamp down on illicit outflows, but also to reposition gold as a strategic financial asset capable of supporting the country’s foreign exchange position. “We are putting the dealers together so that once they buy the gold, that gold should be sold within the country. The sole exporter of gold from this country should be one channel where we are able to account for what is getting out,” Mines Secretary Thomas Mutwiwa said in an interview with the Business Daily.“We will be able to get foreign exchange reserves —and who knows, we can keep this gold as reserves in our central bank to help stabilise the shilling.” The disclosure signal that refined Kenyan gold could, in the coming years, play a role in anchoring the shilling. Official records show the country’s gold reserves are limited, with the value negligible relative to the overall reserve needs.The Economic Survey 2025, estimates monetary gold held as part of reserve assets at Sh188.9 million in 2024, up from Sh181.5 million in 2023, Sh124.9 million in 2022, Sh115.3 million in 2021, and Sh149.9 million in 2020. The modest gold reserve position contrasts with official domestic production. Kenya produced 358.5 kilogrammes of gold valued at Sh3.02 billion in 2024, compared with 410 kilogrammes worth Sh3.18 billion in 2023 and 563.6 kilogrammes valued at Sh3.38 billion in 2022.Under the proposed model, gold from artisanal, small-scale and largescale miners will flow through licensed dealers and processing facilities before reaching refineries, where it will be upgraded to international standards. The refined output will then be exported through a centralised mechanism, ensuring traceability from mine to market. The strategy centres on the proposed Kakamega gold refinery, which is nearing completion and is expected to process gold to 99.99 percent purity.Kenya’s approach mirrors models adopted elsewhere on the continent. In Ghana, gold exports are centralised under the Ghana Gold Board, while in South Africa, the South African Diamond and Precious Metals Regulator licenses dealers and refiners, with Rand Refinery handling the bulk of processing before export.Other countries, including Libya, Sudan, and Zimbabwe, rely heavily on central banks as sole buyers and exporters, with similar reforms underway in Ethiopia and Uganda. (ICE NAIROBI)

Fonte notizia: Business Daily