As the Central Bank of Kenya (CBK) prepares to begin buying locally mined gold under sweeping new legislation signed by President William Ruto, a crucial question is emerging across the mining industry: Who will be allowed to sell gold to the country’s apex bank?

While the Central Bank of Kenya (Amendment) Act, 2026 grants the CBK explicit legal powers to buy, sell, import, export, hold, refine and deal in gold and other precious metals, the law leaves open a series of commercial, regulatory and compliance questions that could determine who benefits from Kenya’s biggest shift in gold policy in decades.

At stake is a potentially lucrative Domestic Gold Purchase Programme (DGP) that will allow the CBK to buy locally mined gold using Kenya shillings before adding it to the country’s official foreign exchange reserves.

For thousands of artisanal miners, licensed dealers, refiners and exporters, becoming part of the CBK’s supply chain could unlock a new and stable domestic market. But industry players say participation will depend on meeting stringent licensing, traceability and financial compliance requirements.

 “Ushers in sweeping reforms aimed at strengthening the CBK’s capacity to safeguard financial stability, improve banking oversight, and modernise the country’s monetary policy framework,” Ruto wrote on X.

He added that the law clarifies the CBK’s authority to deal in precious metals as part of reserve management.

“This will support the growth of Kenya’s mining sector and align Kenya with practices in Tanzania, Ghana, and South Africa,” he said.

Race for CBK-approved suppliers

Unlike commercial gold traders who can purchase from a wide network of miners and brokers, the CBK is expected to source only legally produced and fully traceable gold.

That immediately places licensed miners, registered dealers and accredited refiners at the centre of the emerging supply chain.

Although the amendment authorises the CBK to “buy, sell, import, export, transfer, hold, refine, or otherwise deal in gold,” it also indicates that the bank will rely on licensed private refiners instead of establishing its own commercial refining operations.

This means existing refining companies could become strategic partners in transforming raw gold into internationally accepted bullion suitable for reserve holdings. Competition among refiners to intensify as firms position themselves to meet the quality, purity and reporting standards likely to be required by the CBK.

For artisanal miners, obtaining the necessary licences may become more valuable than ever.

Kenya’s gold industry remains largely informal despite producing gold worth approximately Ksh3.3 billion in 2025.

Much of that production passes through brokers before reaching exporters, making it difficult to establish a transparent chain of custody.

The CBK, however, is unlikely to purchase gold whose origin cannot be verified. That places renewed importance on mining permits, dealer licences, refining licences and compliance with mining regulations administered by the Ministry of Mining, Blue Economy and Maritime Affairs.

Businesses operating outside the formal licensing framework risk being excluded from one of the country’s most significant institutional gold markets.

Traceability becomes a commercial advantage

One of the biggest challenges facing Kenya’s gold sector has been proving where gold originates.

International financial institutions increasingly require gold to be traceable from the mine to the final buyer to prevent illegal mining, tax evasion and cross-border smuggling.

If the CBK adopts international reserve management standards similar to those used by other central banks, suppliers may have to demonstrate complete documentation covering extraction, transportation, refining and final delivery.

That could encourage greater investment in digital record-keeping, certified weighing systems, laboratory testing and secure logistics.

Businesses capable of providing these services may find themselves benefiting alongside miners.

Anti-money laundering checks likely to tighten. Gold is classified globally as a high-risk commodity for money laundering because of its high value and ease of transport.

For that reason, suppliers hoping to sell to the CBK are expected to undergo rigorous customer due diligence and financial compliance checks.

Financial institutions dealing with gold transactions already apply Know Your Customer (KYC) requirements and monitor suspicious transactions under Kenya’s anti-money laundering framework.

Industry experts expect similar safeguards to form part of the Domestic Gold Purchase Programme, ensuring that gold entering Kenya’s official reserves has a verified legal origin and complies with international financial standards.

These controls could also improve Kenya’s standing in international commodity markets by strengthening confidence in the country’s gold supply chain.

Responsible sourcing under global scrutiny

Another emerging requirement is responsible sourcing. Global bullion markets increasingly demand proof that gold has been mined without financing criminal activity, violating human rights or causing severe environmental harm.

Central banks purchasing domestically mined gold are under growing pressure to ensure suppliers meet internationally recognised environmental, social and governance (ESG) standards.

For Kenyan miners, that could mean improved workplace safety, environmental rehabilitation and better documentation of mining operations.

Although compliance may increase operating costs, it could also open access to premium buyers beyond the CBK.

The legislation comes as Kenya prepares to develop the Isulu-Bushiangala Gold Project in Kakamega County, one of the country’s largest gold discoveries.

The project contains an estimated 1.2 million ounces of gold valued at about Ksh680 billion, positioning Kenya to significantly expand domestic production over the coming years.

A larger supply of locally mined gold will make the design of the CBK’s procurement system even more critical, particularly around supplier eligibility, pricing mechanisms, quality standards and delivery requirements.

Procurement rules remain the missing piece. While the new law establishes the CBK‘s authority to purchase gold, the operational details remain under close watch.

 While the new law establishes the CBK’s authority to purchase gold, the operational details remain under close watch. Mining companies, refiners, dealers and artisanal miners are awaiting regulations that will determine who can sell directly to the Central Bank and whether small-scale producers will be required to channel their gold through licensed aggregators or accredited refiners.

The industry is also seeking clarity on how the CBK will determine purchase prices, the quality and purity standards suppliers must meet, and the documentation required to prove the legal ownership and traceability of gold.

Equally important are the compliance requirements suppliers will have to satisfy, including anti-money laundering checks, tax obligations and responsible sourcing standards that align with international best practices.

The answers to these questions will ultimately determine which businesses qualify to supply the CBK, how inclusive the DGP Programme becomes, and whether Kenya’s push to formalise its gold sector delivers lasting benefits for miners, refiners and the wider economy.