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Exclusive: Gold dealers struggle for legitimacy in Kenya

Gold bars.

In Kenya, there have been numerous documented arrests of fake gold dealers and the subsequent confiscation of their products by detectives pending trial, it begs the question: What is the ultimate outcome of such cases?

One of the country’s gold dealers has revealed to Nairobi News the hardships he goes through in trying to get a licence as a genuine gold dealer.

The dealer, who did not want to be identified, said that after working in the industry for over ten years, gold dealers go through a meticulous process of being vetted before being handed the licence.

But even after being vetted, the dealer revealed that they are still hounded by law enforcers who are accused of rushing to court without proper investigation.

“Let the prosecution weigh the evidence before charging the guilty. Some of the cases are civil, that is why all these cases never go anywhere,” the trader told Nairobi News in an exclusive interview.

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The dealer said that despite going through all the procedures required by the Ministry of Mines, which issues a mineral dealer’s licence, they still face harassment from police officers.

“These cases have become the norm, but no one is ever convicted because most of the cases should have been civil cases.”

Dealers have also raised questions with law enforcement officials, who usually arrest them without checking the contract and its terms, leaving them in awe.

Dealers also say that foreign companies are given preferential treatment and can easily obtain licences without any harassment, unlike Kenyan dealers who end up in court and have their reputations tarnished by the time the case is dismissed.

“After the suspects are acquitted, their reputations are damaged and they are not compensated.”
Even with the discovery of gold in Kakamega and some other parts of the country, the dealer said Kenya will still be described as a country without gold.

“We have a lot of gold, which is an investment for the country.”

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