Gold attracts both legitimate trade and elaborate fraud. Kenya regulates the buying, selling and movement of gold through licensing, and anyone handling the metal , dealer, broker or buyer , should understand what the law requires before money changes hands. Both licences sit within the mining framework under the Act, and this note explains them in general terms.
What is a gold dealer licence?
Under the Mining Act 2016 framework, dealing in gold , purchasing, selling, aggregating or exporting , calls for a dealer licence appropriate to the activity. The licence is personal to the holder and to the premises from which the trade is conducted, and it is recorded against the holder in the Mining Cadastre Registry. Operating without one is an offence, and the Act, published through Kenya Law, also criminalises buying from unlicensed sources.
What is a detector licence?
Detectors used to search for gold and other minerals also require a licence. The requirement is easy to overlook because the equipment is portable and widely advertised, but possession or use of an unlicensed detector exposes the user to seizure of the equipment and to prosecution. Visitors planning recreational detecting should take advice first.
What duties come with dealing in gold?
- Verify that the mineral was lawfully won under a valid permit or licence.
- Keep accurate records of purchases, sales and stock.
- Trade only from licensed premises and through permitted channels.
- Meet the tax obligations administered by the Kenya Revenue Authority.
- Report suspicious sourcing requests rather than absorb the risk.
Export adds a further layer. Consignments leaving the country pass through customs controls administered by the Kenya Revenue Authority under the East African Community customs framework, and shipments without complete papers are stopped at the border. Declarations must match the mineral, its value and its destination.
How do you protect yourself in a gold transaction?
Insist on original documents, check licences against the public record, and record the transaction properly: quantity, assay, price, delivery and dispute resolution. The gold trade has attracted recurring schemes, so verification is not optional. Our mining law team reviews counterparty documentation, and our contract lawyers draft the sale and supply agreements that gold transactions require.
For guidance on your specific situation, contact CS Advocates LLP , call, WhatsApp, or book a confidential consultation at our Westlands, Nairobi office.