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A recent report has put Kenya on the spot over the smuggling and illicit trade in gold.
Global Initiative Against Transnational Organised Crime (GI-TOC), an international organisation that investigates and documents global organised crime
Says criminal and corrupt actors use corruption and violence, as well as financial levers to profit from and control the trade, mainly because of its high-returns and, low-risk nature.
“There is evidence of senior politicians and foreign nationals being involved in the illegal mining, processing and trade of gold,” the report titled “Illicit Gold Markets in East and Southern Africa” the report said.
Key actors in trade including senior government officials now stare at arrests and investigations as global agencies push to curb the criminal enterprise.
“This could include increased support for financial intelligence units and financial investigations,” GI-TOC said in a May 18 report.
In Kenya, around 100,000 to 250,000 people directly engage in artisanal mining in Migori, parts of West Pokot and Turkana in western Kenya as the main income-generating activity yet gold miners earn peanuts from this valuable resource.
A crackdown on illegal mining operations in Migori area following a fatal pit collapse revealed that mines and processing plants are owned by local senior government officials, as well as a former Kenyan ambassador, several Chinese investors and prominent businessmen in the area, GI-TOC reveals.
From Nairobi, gold is moved to the UAE, China and India through Eastleigh which is Nairobi’s main gold hub.
The market is largely illicit, with gold dealerships disguised as general merchandise outlets or private offices.
The illicit trade is facilitated by rampant corruption in the area, with law enforcement reported to be involved in protection and extortion rackets.
The area is also known to be a hub for other types of illicit activity, including human trafficking and the storage and trafficking of small arms.
River Road, a commercial street on the fringes of Nairobi, is a secondary gold trading hub. Gold trading also takes place in the Nairobi Central Business District and Karen neighbourhoods.
The trade in these areas is more formal, with many buyers holding gold trading licences. Buyers are often Indian or European nationals.
The construction industry is thought to be a common cover for mining activity, an allegation also made in other African countries where Chinese firms are formally involved in construction and infrastructure projects but are mining on the side.
The report further revealed the syndicates and cartels have wedged themselves between the artisanal miners and dealers. Worse, they’re themselves now taking over the mining activity and in so doing, stealing livelihoods from the small-scale miners.
“In other instances, political actors will not obtain a licence, but take over mining operations using deception, political pressure and violence. They may also not engage in mining themselves, rather using extortion to get money and minerals from mining operations (legal and illegal) in areas they control,” the report revealed.
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