Taita Taveta, Kenya – Mineral dealers in Taita Taveta are urging the government to step in and dismantle alleged cartels suspected of sabotaging the newly inaugurated gemstone value addition and market centre in Voi. The dealers claim that the interference is risking the loss of billions in revenue as these cartels aid mineral smugglers in evading taxes.
Expressing their concerns, the dealers are seeking the intervention of Salim Mvurya, the Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs, urging him to initiate a fresh election of representatives to the gem centre committee.
Javan Mghendi, a mineral dealer based in Voi, revealed, “Those proposed to the committee are just brokers holding dealer’s licenses. They are the same people accommodating foreigners who smuggle uncut stones without paying taxes.” Mghendi further highlighted that only four out of 21 registered dealers in the county were utilizing the facility, with the majority turning into brokers, aiding in tax evasion.
The identified cartels allegedly engage in selling gemstones to brokers and middlemen, causing instability in the market. Mghendi called for the revocation of licenses for dealers who do not comply with the law, stating that these dealers-cum-brokers are undermining the gem centre’s objective.
The mineral dealers believe these cartels are enjoying protection from influential politicians and government officials, contributing to the challenges faced by the industry. Mghendi emphasized that the country is losing revenue due to the smuggling of uncut gemstones by middlemen, primarily exporting to Middle Eastern countries without paying taxes.
Taita Taveta, known for its abundant precious stones such as Tsavorite, ruby, chrome tourmaline, yellow tourmaline, red garnets, green garnets, and Tanzanite, is facing the threat of the lucrative mineral industry being undermined by these alleged cartels.
A senior official at the gem centre, speaking on condition of anonymity, acknowledged internal disputes among dealers, warning that these disagreements could jeopardize plans to establish the facility as a centralized mineral market.
The Sh60 million gemology centre, inaugurated by President William Ruto in October last year, aims to maximize Kenya’s mining potential and serve as the sole facility for mineral value addition before export. The government’s target is to generate Sh3 billion annually as revenue from value addition on gemstones destined for export, a key initiative for enhancing the contribution of the mining sector to the national GDP.
Mining currently accounts for less than one percent of Kenya’s GDP, but President Ruto has set an ambitious goal of increasing this contribution from one percent to 10 percent, highlighting the sector’s potential impact on the nation’s economic landscape.
