Hundreds of traders in Kenya’s booming precious metals and stones sector risk losing their trading licenses starting next week unless they register with the Financial Reporting Centre (FRC), a government body charged with tracking illicit financial flows.
The move is part of Kenya’s intensified efforts to combat money laundering and other forms of financial crime, particularly after the country was placed on the Financial Action Task Force’s (FATF) grey list in February 2024. The greylisting has triggered closer scrutiny of Kenya’s financial institutions and has strained cross-border transactions involving local banks.
All dealers in gold, gemstones, and related products have until April 11, 2025, to comply with the directive issued by the FRC. The directive targets a wide spectrum of players across the value chain including miners, brokers, gemstone cutters, polishers, metal refiners, jewellers, and scrap market traders.
“The aim is to help identify and disrupt the flow of illicit funds through this vulnerable sector,” said Saitoti Maika, Director General of the FRC. “We are not out to kill businesses, but to protect them from being used as channels for crime.”
While the policy is clear at the national level, the impact is being felt most acutely at the grassroots. In Mwatunge, a small town in Taita-Taveta County, local traders are scrambling to understand and meet the new requirements.
“We were only informed recently and many of us don’t know where to start,” said John Mwambingu, a long-time stone dealer in the region. “This is our livelihood. We’ve reached out to the Due Diligence Advisory group for help, and we’re hopeful we’ll be able to register in time.”
Registration is being conducted online through the government’s anti-money laundering platform. But limited digital access and awareness in rural areas present significant hurdles for compliance.
The crackdown follows growing international concerns about the use of gold and gemstones as vehicles for laundering money, financing terrorism, and trafficking illicit arms. In its 2024 review, the FATF cited Kenya’s extractives sector as a key weakness in the country’s financial oversight framework.
Analysts warn that failure to fully regulate the sector could have broader economic implications. “Kenya risks further isolation in the global financial system if we don’t clean up,” said financial crime expert Naomi Wanjiku. “It’s crucial that the government not only enforces regulations but supports dealers through education and access.”
With just days to the deadline, uncertainty looms for many dealers who depend on the trade for their daily survival. For now, all eyes are on April 11—when the government is expected to begin enforcement that could reshape one of Kenya’s most lucrative informal industries.
