Core licenses & approvals for gold dealers

Depending on activities (buying, refining, exporting) you typically need one or more of the following:

• Gold Dealer’s License — trade gold domestically.
• Mineral Export Permit — mandatory for exports.
• Gold Refining License — for refining raw gold.
• Assayer’s License — to issue assay/quality certificates.
• Company registration, county trade licenses and KRA tax registration.

Practical help: legal teams (like WKA Advocates) offer end-to-end support for license applications, renewals and regulatory filings.

Sourcing & due diligence (KYS & chain of custody)

Traceability is the backbone of legal gold trade. Robust due diligence should include:

• Verification of sellers’ licenses and miner registration.
• Chain-of-custody documentation for each lot.
• Avoidance of gold from conflict or high-risk areas.
• Alignment with OECD Due Diligence Guidance.

Tip: retain digital records (invoices, buyer/seller IDs, assay certificates) for audits and export clearance.

AML & financial compliance

Gold dealers must implement anti-money laundering safeguards under POCAMLA:

• Register with the Financial Reporting Centre (FRC).
• Conduct KYC for customers and suppliers.
• File Suspicious Transaction Reports (STRs) when required.
• Maintain internal compliance audits and record retention policies.

Taxation & royalties

Key revenue obligations include:

• Royalty: commonly 5% of gross gold sales (confirm current rates with KRA).
• Corporate income tax on profits.
• VAT: zero-rating may apply to raw gold; refined products can attract VAT.
• Customs duties where applicable on imports/exports.

Work with tax advisors to structure transactions, manage VAT positions and prepare for KRA audits.

Exporting gold: documentation & process

To export gold legally you must:

• Secure a valid Mineral Export Permit.
• Provide Assay Certificates and a Certificate of Origin.
• Submit an Export Declaration Form (EDF) via KenTrade / the National Single Window.
• Use licensed freight & secure handling providers; ensure insurance and bonded logistics for bullion transport.

Documents typically required: Invoice, packing list, assay certificate, Export Permit, KRA TCC, Certificate of Origin and transport manifests.

Safe trading practices & contract essentials

1. Verify identities: seller and buyer IDs, business registration and tax compliance.
2. Demand independent assays: use KEBS-accredited or recognized labs for purity testing.
3. Use escrow or licensed escrow agents: avoid cash and personal accounts.
4. Draft robust sale agreements: state weight, purity, payment terms, delivery, inspections and dispute resolution (arbitration clauses advisable).

Avoid red flags: secretive sellers, pressure sales, meetings in unsecured locations, or requests for payment to private accounts.

Dispute resolution & legal risk management

For high-value disagreements use:

• Commercial litigation in Kenyan courts; or
• Arbitration — Nairobi Centre for International Arbitration (NCIA) is commonly used; or
• Mediation & settlement through qualified counsel.

Maintain complete transaction records to strengthen your position in any dispute.

Practical legal checklist for buying or exporting gold

• Confirm seller’s license & KRA TCC.
• Obtain independent assay and chain-of-custody paperwork.
• Use escrow and secure transport providers.
• File STRs where transactions appear suspicious.
• Retain documents for statutory retention periods.

Conclusion — stay legal, stay profitable

Trading gold in Kenya can be profitable, but regulatory complexity is high. Compliance with licensing, AML, tax and export rules protects your business and reputation. If you trade at scale or plan exports, engage specialist legal and compliance advisors to design KYC/AML programs, handle license applications and manage disputes.