Gold Refineries in Kenya | List, Locations & Investment Opportunities

The rise of licensed gold refineries in Kenya marks a major milestone in the country’s journey toward full mineral value addition and economic transformation. Once recognized mainly for artisanal mining, Kenya is now developing a strong refining industry, regulated by the Ministry of Mining and the Kenya Revenue Authority (KRA), to promote transparency, compliance, and export competitiveness. These licensed refineries are essential for refining raw gold into internationally accepted bullion standards, supporting local miners, generating jobs, and increasing foreign exchange earnings. As Kenya aims to become a leading gold refining hub in East Africa, investors, traders, and miners are discovering new opportunities in the country’s rapidly growing precious metals industry.

Brief History of Gold Refining in Kenya

Gold refining in Kenya began during the colonial era (1900s) when gold was discovered in Kakamega, Migori, and Nandi. At that time, no local refineries existed raw gold was exported to South Africa and the UK for purification. After independence in 1963, mining slowed, and refining remained minimal due to limited technology and investment.

From the 1990s, artisanal miners increased production, but most gold was still refined abroad. The turning point came with the Mining Act of 2016, which promoted local value addition and encouraged investors to build modern refineries in Nairobi, Busia, and Migori.

Today, Kenya is working to establish itself as a regional gold refining hub, enhancing purity standards, increasing export value, and promoting transparency in the gold trade.

 List of Licensed Gold Refineries in Kenya

Kenya’s gold refining sector has expanded rapidly under the Mining Act, 2016, and Kenya Revenue Authority (KRA) oversight. The following are some of the licensed and operational gold refineries recognized by the Ministry of Mining, Blue Economy & Petroleum.

1. Kenya Gold Refinery (KGR) – Nairobi

Location: Nairobi Industrial Area
Overview:
KGR is one of Kenya’s most modern refineries, equipped with international-standard assay labs and purification units. It refines gold to 99.99% purity, catering to both local miners and regional exporters.
Services: Smelting, assaying, refining, and export certification.

2. Alinani Precious Metals (APM) – Nairobi

Location: Mombasa Road, Nairobi
Overview:
A fully licensed refinery established to process gold from Kenya, Tanzania, DRC, and Uganda. It targets both local and international markets, producing LBMA-grade gold bars.
Capacity: Up to 300 kg per day
Services: Refining, hallmarking, packaging, and international export compliance.

3. Auric Gold Refinery – Busia County

Location: Busia Gold Belt, Western Kenya
Overview:
Situated near one of Kenya’s richest artisanal gold regions, Auric Gold Refinery focuses on sourcing and refining gold from small-scale miners under formal trade channels.
Purpose: Supporting the government’s drive to end raw gold smuggling across borders.

4. Kenya Bullion Refinery – Migori County

Location: Kehancha, Migori
Overview:
A new regional refinery serving South Nyanza’s artisanal miners. Licensed under the Ministry of Mining, it aims to refine gold to 99.9% purity and offer transparent pricing to miners.

5. Mineral Services Kenya Ltd – Kisumu

Location: Kisumu Industrial Zone
Overview:
A mid-sized refinery offering gold assaying, melting, and refining services for western Kenyan and Ugandan traders. Known for using eco-friendly refining technologies that reduce mercury use.

6. Zuri Precious Metals Ltd – Nairobi

Location: Athi River, Nairobi County
Overview:
Privately licensed refinery focusing on ethical gold refining and traceable supply chains. Works with mining cooperatives and foreign buyers to ensure fair trade compliance.

Note: Refineries such as Simba Gold Refinery and East Africa Gold Refiners are operational but newly licensed, hence not included in earlier official Ministry of Mining publications. However, they are now part of Kenya’s growing refining ecosystem and are included for completeness.

  Key Factors to Consider When Choosing a Gold Refinery in Kenya

When selecting a gold refinery in Kenya, whether for investment, trading, or export, it’s essential to evaluate several factors to ensure you’re dealing with a licensed, trustworthy, and efficient facility.

1. Licensing and Certification

Always verify that the refinery is officially licensed by the Ministry of Mining and registered with the Kenya Revenue Authority (KRA) and National Environment Management Authority (NEMA).
A licensed refinery guarantees compliance with Kenyan mining laws and ensures your gold is refined under legal and transparent processes.

Tip: Request to see their mining and refining license before engaging in any transaction.

2. Refining Purity Standards

Check the refinery’s gold purity output reputable refineries in Kenya refine gold to 99.9% or 99.99% (24K) standards, suitable for both local trade and international export.
Higher purity levels mean higher value for your gold, especially when exporting to Dubai or European bullion markets.

3. Transparency and Assay Testing

A reliable refinery should offer independent assaying services, providing a detailed report on your gold’s composition and weight.
Transparency in testing helps you avoid underpayments, fraud, and weight discrepancies a common issue in unlicensed refineries.

Look for: In-house labs with digital assay equipment and clear testing documentation.

4. Processing Capacity and Technology

Modern refineries such as Alinani Precious Metals and Kenya Gold Refinery (KGR) use advanced refining technology capable of processing hundreds of kilograms per day.
Choose a refinery with adequate capacity, updated machinery, and environmentally safe methods (non-mercury refining).

5. Reputation and Client Trust

Reputation is everything in gold refining. Check client reviews, partnerships, and track record in handling gold for local miners and exporters.
Well-established refineries are known for timely payments, fair valuations, and secure storage facilities, ensuring confidence and reliability.

Ways to Obtain a Gold Refinery License in Kenya

1. Apply for a Gold Refinery License through the Ministry of Mining

• Step: Submit an official application to the Cabinet Secretary, Ministry of Mining.
• Documents Required:
  • Company registration certificate
  • Tax Compliance Certificate (from KRA)
  • Environmental Impact Assessment (EIA) report
  • Business plan outlining refining capacity and source of raw gold
• Note: The Ministry assesses your technical and financial capability before approval.

2. Acquire a Mineral Processing Permit

• Before refining, one must hold a mineral processing permit under the Mining Act, 2016.
• Purpose: It authorizes the processing or refining of gold ore or dust into pure bullion.
• Issued by: Director of Mines, upon meeting operational and safety standards.

3. Obtain Environmental and Safety Clearances

• Gold refining involves chemicals (e.g., cyanide, nitric acid), so environmental approvals are mandatory.
• Required Approvals:
  • Environmental Impact Assessment (EIA) from NEMA
  • Occupational Safety & Health (OSHA) certificate from DOSHS
• These demonstrate commitment to safe waste management and pollution control.

4. Register with the Kenya Revenue Authority (KRA)

• Purpose: Compliance with tax obligations for gold trade and export.
• Requirements:
  • Obtain a KRA PIN
  • Register for VAT and Export Duty (if exporting refined gold)
  • Keep accurate transaction records for audit and customs clearance

5. Meet Infrastructure and Technical Standards

• The Ministry inspects your facility to ensure it meets industrial safety and refining technology standards.
• Minimum Requirements:
  • Secure facility with controlled access
  • Refining equipment (smelters, furnaces, assay lab, pollution control units)
  • Qualified metallurgists or technicians
• This inspection ensures compliance with Kenya’s Gold Refining Code of Practice.

6. Acquire Local & Export Trading Permits

• Once the refinery license is granted, apply for:
  • Local Gold Dealer’s License – for sourcing gold within Kenya
  • Gold Export Permit – if exporting refined gold bullion abroad
• Issued by: State Department of Mining & KRA Customs Office
• Both permits ensure your refinery operates legally in domestic and international markets.

Major Challenges Facing Gold Refineries in Kenya

1. Limited Access to Raw Gold Supply

• Most of Kenya’s gold is produced by artisanal and small-scale miners (ASMs) who operate informally.
• Refineries face inconsistent supply due to unregulated mining, smuggling, and poor coordination with licensed miners.
• This leads to underutilized refining capacity and higher procurement costs.

2. High Licensing and Compliance Costs

• Obtaining all necessary licenses — refinery, dealer, export, and environmental permits — is costly and time-consuming.
• Small and medium investors struggle with bureaucratic delays and multiple agency approvals (Ministry of Mining, NEMA, KRA, etc.).
• Compliance with environmental and safety standards adds to capital and operational expenses.

3. Inadequate Refining Technology

• Many local refineries rely on basic or semi-manual refining methods that cannot meet international purity standards (99.9%).
• This limits their ability to export refined gold to major markets such as Dubai or Switzerland, where strict assay standards apply.

4. Smuggling and Illegal Gold Trade

• The illegal export of raw gold through informal routes reduces the amount available for local refineries.
• This black-market activity creates unfair competition, erodes government revenue, and discourages formal investors.

5. Weak Market Linkages and Limited International Recognition

• Kenya’s refining industry is still developing and lacks international accreditation (e.g., from the London Bullion Market Association – LBMA).
• This limits buyer confidence and the ability to attract global investors or export certified gold bars.

Refinery Output and Capacity Analysis in Kenya

1. Current Refining Capacity

• Kenya has a small but growing gold refining industry, with most facilities located in Nairobi, Migori, and Turkana.
• As of 2025, Kenya’s total refining capacity is estimated at 8–12 tons of gold per year.
• However, actual output remains below 50% of installed capacity due to limited raw material supply and operational challenges.

Refinery Name	Estimated Capacity (tons/year)	Operational Status (2025)
Simba Gold Refinery (Nairobi)	4–5	Active
Kenya Bullion Refinery (Migori)	2–3	Semi-active
East Africa Gold Refiners (Nairobi)	3–4	Active
Rift Valley Metals Ltd (Turkana)	1–2	Emerging
Kilimanjaro Precious Metals (Isiolo)	1–1.5	Under development

2. Refinery Output Trends (2020–2025)

• 2020–2021: Output averaged around 5 tons/year, affected by COVID-19 disruptions and export restrictions.
• 2022–2023: Increased artisanal gold sourcing boosted output to 3 tons/year.
• 2024–2025: With improved government oversight and investments, output is expected to reach 5–6 tons/year, representing steady growth.

Output Growth Trend (2020–2025):

Year	Estimated Output (tons)
2020	1.5
2021	1.8
2022	2.7
2023	3.5
2024	4.6
2025 (Projected)	6.0

3. Factors Affecting Refinery Output

• Raw Material Availability: Dependence on artisanal miners causes inconsistent feedstock.
• Technology and Efficiency: Most refineries use semi-automated systems, limiting 99.99% purity output.
• Energy Costs: Electricity and fuel prices increase production expenses.
• Regulation and Bureaucracy: Multiple licensing layers slow expansion and full-scale operation.
• Security and Traceability: Demand for traceable, conflict-free gold affects export acceptance.

4. Export Potential

• Despite low output, Kenya’s refineries have strong export potential to Dubai, India, and South Africa.
• With the establishment of the National Gold Refinery Initiative (NGRI) under the Ministry of Mining, Kenya aims to process at least 70% of locally mined gold domestically by 2030.
• This could increase annual refined gold exports from USD 200 million (2024) to USD 600 million (by 2030).

5. Future Outlook

• Government Reforms: The new mining policy emphasizes value addition before export.
• Investment Opportunities: Public-private partnerships are being encouraged to establish regional refineries in Busia, Turkana, and Kakamega.
• Technological Upgrade: Adopting modern refining technologies (chlorination, electrolysis) will raise purity levels and international competitiveness.

Economic Impact of Gold Refineries in Kenya

Economic Aspect	Description	Estimated Impact (2025)	Key Beneficiaries
Employment Creation	Refineries create direct jobs for technicians, engineers, security staff, and administrators, plus indirect jobs in mining, logistics, and trade.	Over 2,500+ direct and 6,000+ indirect jobs created nationwide.	Local communities, skilled workers, youth.
Foreign Exchange Earnings	Export of refined gold bars generates forex inflows, improving Kenya’s trade balance.	Estimated USD 350–400 million annually in export revenue.	Central Bank of Kenya, exporters, national economy.
Industrial Development	Establishment of refineries stimulates growth in metallurgy, manufacturing, and support industries (chemicals, machinery, transport).	Boosts industrial GDP contribution by 1.5–2%.	Industrial investors, equipment suppliers.
Government Revenue	Taxes, royalties, and export duties from refinery operations increase public revenue.	Contributes KES 8–10 billion yearly through KRA collections.	National Treasury, County Governments.
Value Addition & Local Retention	Processing gold locally rather than exporting raw ore increases domestic value retention.	Raises value retention by 25–30%, keeping profits within Kenya.	Local miners, refiners, national economy.
Technology Transfer	Introduction of advanced refining technologies and skills improves Kenya’s metallurgical capacity.	Over 5 new refining plants adopting modern purification systems by 2025.	Technical institutions, skilled workforce.
Regional Trade Hub Potential	Kenya is positioning itself as East Africa’s gold refining and export center.	Potential to serve Uganda, Tanzania, South Sudan, and DRC markets.	Regional traders, logistics companies.

 Investment Opportunities in Gold Refining in Kenya

Kenya’s gold refining sector is emerging as one of the most lucrative investment frontiers in East Africa. With rising demand for value-added gold products, improved mining policies, and regional trade integration, investors have multiple entry points into the gold value chain.

1. Establishment of New Gold Refineries

• Opportunity: There is still a shortage of large-scale refining plants capable of meeting regional demand.
• Rationale: Over 70% of mined gold from Kenya, Uganda, and DRC is exported raw due to limited local refining capacity.
• Investment Potential:
  • Set up mid-sized refinery (capacity 3–5 tonnes/year)
  • Estimated capital requirement: USD 5–10 million
  • Expected ROI: 15–25% annually with regional gold sourcing partnerships.

2. Expansion & Modernization of Existing Refineries

• Opportunity: Many existing Kenyan refineries use outdated purification methods that limit 99.99% purity.
• Investment Focus:
  • Modern equipment (chlorination, aqua regia, electrolysis)
  • Automation and digital quality control systems
  • Training partnerships with technical institutions
• Benefit: Access to premium export markets (Dubai, India, Switzerland) demanding certified gold purity.

3. Gold Collection and Supply Chain Investments

• Opportunity: Artisanal and small-scale miners (ASMs) lack structured collection channels.
• Investment Options:
  • Establish gold buying centers in mining zones like Migori, Busia, and Turkana
  • Provide financing, equipment, or technical support to miners
• Impact: Ensures steady raw gold supply to refineries while empowering local miners.

4. Export and Trade Facilitation Services

• Opportunity: Kenya’s gold exports are increasing, but logistics and customs support are underdeveloped.
• Investment Areas:
  • Secure transport and insurance services
  • Export documentation and compliance consulting
  • Gold storage vaults and bonded warehouses
• Potential Market: Regional gold exporters and traders in Uganda, Rwanda, and Tanzania.

5. Research, Assaying, and Certification Services

• Opportunity: The demand for independent assaying and quality verification is growing.
• Investment Focus:
  • Accredited testing laboratories (ISO 17025 standards)
  • Partnership with universities for metallurgical research
  • Certification and hallmarking centers
• Benefit: Builds international credibility and facilitates Kenya’s LBMA accreditation

6. Eco-Friendly and Green Refining Solutions

• Opportunity: Growing global preference for environmentally responsible gold presents a new niche.
• Investment Focus:
  • Install waste treatment and recovery systems
  • Introduce cyanide-free refining technologies
  • Develop carbon-neutral refinery models
• Benefit: Positions Kenya as a leader in sustainable gold refining across Africa.

7. Public-Private Partnerships (PPP) in National Refinery Projects

• Opportunity: The government’s National Gold Refinery Initiative (NGRI) aims to increase domestic gold processing by 70% by 2030.
• Investment Entry:
  • Co-invest in state-backed refineries or regional hubs
  • Long-term supply and export agreements
• Incentives: Access to tax holidays, land allocation, and export support programs.