What happened

President William Ruto told reporters on Thursday that the Central Bank of Kenya (CBK) will receive priority status in the government’s newly unveiled Kenya gold trade plan. The announcement, reported by Business Daily, signals that the CBK will play a leading role in overseeing licences, foreign‑exchange transactions and revenue collection linked to gold mining and export activities. Ruto emphasized that the move is intended to strengthen Kenya’s position in the regional gold market and to ensure that earnings from the sector flow securely into the national treasury.

Context and background

The gold sector in Kenya has grown steadily over the past decade, with small‑scale miners operating in counties such as Turkana, Kitui and Kakamega. Historically, the sector has been fragmented, with multiple agencies issuing licences and limited coordination on export procedures. This has led to concerns about informal trading, loss of foreign‑exchange earnings and inadequate data for policymakers. In response, the Ministry of Trade, together with the Kenya Investment Authority, drafted a comprehensive gold trade framework earlier this year, aiming to formalise the value chain from extraction to export.

President Ruto’s endorsement of the CBK’s priority role builds on the central bank’s existing mandate to manage Kenya’s foreign‑exchange reserves and to regulate the flow of foreign currency. By placing the CBK at the centre of the gold trade plan, the government hopes to tighten oversight of gold export licences, improve reporting of export volumes, and channel earnings through official banking channels. The CBK has previously introduced measures to curb illicit foreign‑exchange flows, such as tightening controls on remittances and enhancing the monitoring of large cash transactions. Extending these tools to the gold sector is seen as a logical next step.

The decision also reflects broader regional trends. East African neighbours, notably Tanzania and Uganda, have recently upgraded their own central banks’ involvement in mineral exports to boost transparency and attract foreign investors. Kenya’s move is therefore part of a competitive push to position the country as a reliable gold supplier to international markets, especially to buyers in the United Arab Emirates, India and China, where demand for African gold remains strong.

Compared with what is normal

Until now, the CBK’s direct involvement in mineral trade has been limited to routine foreign‑exchange monitoring. In contrast, the new plan grants the central bank a supervisory role over licensing, export documentation and revenue repatriation. This shift is comparable to the way the CBK handles the tea and coffee export sectors, where it works closely with the Tea Board and Coffee Board to ensure that export earnings are captured in the official accounts. By aligning gold with these established commodities, the government expects a more disciplined flow of foreign currency and a reduction in informal trade.

• Previous gold export processes relied heavily on county‑level permits and private brokers, often resulting in unrecorded shipments.
• Under the new plan, CBK approval will be required for all export licences, bringing the sector in line with the tea and coffee frameworks.
• Foreign‑exchange earnings from gold are projected to be recorded more accurately, similar to the annual Sh30‑40 billion reported from tea exports.

Why it matters

For Kenyan SMEs operating in the gold value chain, the CBK’s priority status could mean clearer licensing procedures and more predictable access to foreign‑exchange facilities. Formalising the trade reduces the risk of shipments being delayed at customs or rejected by overseas buyers due to documentation gaps. Moreover, a transparent system can attract foreign investment, as investors prefer markets where revenue streams are reliably tracked and repatriated. For the broader economy, capturing gold earnings more effectively can bolster foreign‑exchange reserves, support the stability of the shilling, and provide additional fiscal space for development projects.

Practical steps

• Review your current gold export licences and ensure they are registered with the CBK’s new portal once it launches.
• Engage with your bank early to understand any new foreign‑exchange documentation requirements for gold shipments.
• Align your record‑keeping with the CBK’s reporting standards to avoid delays at customs.
• Monitor updates from the Ministry of Trade and the CBK for training sessions or guidance notes on the new procedures.

Financial Management & Analysis services at Beavoren Ventures can help your business adapt to the new CBK‑led gold trade framework, ensuring compliance and optimal cash‑flow management.

Talk to our team at Beavoren Ventures - info@beavorenventures.co.ke - to set up your systems correctly.

Disclaimer: This article is informational and does not constitute formal tax, audit or legal advice. For guidance specific to your circumstances, please contact Beavoren Ventures.