Kenya bans exports of unprocessed minerals, plans three refineries

Kenya just drew a line in the sand on raw mineral exports. President William Ruto announced a sweeping ban on shipping unprocessed gold and other minerals out of the country, requiring all extraction to be refined locally before it can be sold through government-approved channels.

The policy comes paired with plans to build at least three gold refineries, positioning East Africa’s largest economy to capture more value from its underground wealth rather than watching it leave the country in raw form.

What the ban actually looks like

The core mechanics are straightforward: no mineral leaves Kenya unless it’s been processed first. The Central Bank of Kenya will serve as the primary buyer of domestically refined gold, giving the state first priority in the purchase program. The goal is to formalize what has been a largely unregulated market and ensure fair pricing with greater transparency.

Kenya currently produces roughly 300 kg of gold per month. Annual unregulated transactions in the gold sector are estimated at 36 billion shillings, a figure that represents significant lost revenue for a government trying to formalize and tax its extractive industries.

The most advanced of the planned refineries is in Kakamega, backed by a Sh5.8 billion investment from H-NUO Kenya Company. That facility is targeting operational status by mid-2027. A second refinery is planned for Nairobi, with at least one additional facility in the pipeline.

Following the African playbook

Kenya isn’t inventing this approach from scratch. The policy mirrors strategies already deployed by Ghana and Zimbabwe, where governments banned raw mineral exports and established central banks as primary buyers to maximize national returns from mineral wealth.

Ghana’s experience is particularly instructive. The country launched a domestic gold purchase program through the Bank of Ghana, aiming to boost foreign reserves and reduce dependence on the US dollar. Zimbabwe took a similar path with its gold sector, requiring deliveries to the central bank and cracking down on smuggling.

President Ruto had signaled earlier in 2026 that a crackdown on raw mineral exports was coming, making this announcement the formalization of a direction the government had been telegraphing for months.

The economic math

For artisanal and small-scale miners, the policy is a double-edged sword. On one hand, selling through government-approved channels with CBK as the primary buyer could mean more stable and transparent pricing. On the other, miners who have operated informally for years will face pressure to register, comply with regulations, and potentially accept prices set by institutional buyers rather than the open market.

The 36 billion shillings in annual unregulated gold transactions represents a shadow economy that employs thousands and supports entire communities. Bringing that into the formal sector requires more than just a ban. It requires trust-building, fair pricing mechanisms, and transition support for miners who may resist the change.

What to watch

The implementation timeline is the first variable worth tracking. The Kakamega refinery’s mid-2027 target gives some breathing room, but enforcing an export ban before sufficient refining capacity exists could create bottlenecks and push more trading underground rather than less.

The CBK’s new role as primary gold buyer also creates interesting dynamics. Making the CBK the first-priority domestic purchaser effectively gives the government significant pricing power in the local market. How that power is wielded will determine whether miners see the institution as a fair partner or an unwelcome gatekeeper.

Kenya’s gold production of 300 kg monthly is modest compared to continental leaders like Ghana and South Africa. But this policy isn’t just about gold. The ban covers all unprocessed minerals, which means any expansion of Kenya’s broader mining sector, including gemstones, titanium, and rare earths, will be shaped by the processing-first mandate.

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