CBK Takes Priority in Kenya Gold Trade Plan

Kenyan President William Ruto has announced plans to prioritize the Central Bank of Kenya (CBK) in purchasing locally mined and processed gold, aiming to build national foreign exchange reserves. This move comes two months after Ruto signed the Central Bank of Kenya (Amendment) Act, 2026, which allows the CBK to buy gold to diversify its reserve assets.

The strategy is known as a Domestic Gold Purchase Programme (DGPP), adopted by several African nations including Tanzania and Ghana. Under this programme, a country's central bank or state agency buys locally mined gold to build foreign exchange reserves and formalise trade.

Kenya's CBK will have the right of first refusal when it comes to purchasing gold from Kenya, with Ruto stating that 'we want the gold that is being mined in Kenya to be processed in Kenya' and 'the Central Bank to be the first point of sale for gold coming from Kenya'. This move aims to strengthen the market by creating clarity on pricing and weeding out unscrupulous dealers who exploit artisanal miners.