Foreign and local investors have the opportunity to invest in Kenya's largely unexploited jewellery and gemstones industry.

Investment Opportunity

Kenya's mineral potential remains largely untapped. There are vast opportunities in mining new and existing varieties of gemstones for the international market. This could be undertaken solely or in partnership with claim holders. There are also opportunities for investors wanting to carry out gemstone polishing as well as jewellery manufacturing.

The gemstone discoveries in East Africa in the 1960s transformed the jewellery world. New varieties, colours and variations on existing species made the decade the most exciting time in the gemstone industry. Some of Kenya's gemstones and precious minerals include green garnet, ruby corrondum, tsavorite, gold, ruby, zoisite, sapphire, tourmaline and aquamarine.

Ruby is currently being mined in Taita Taveta, Kwale, Kitui, West Pokot and Baringo districts; tsavorite in Taita Taveta and Kwale districts; sapphire in the Kitui, Mwingi and Isiolo districts; tourmaline in Taita Taveta, Kajiado, Kwale and Kitui districts and aquamarine in Meru and Tharaka districts.

The gemstone and jewellery sub-sector in Kenya is liberalised with no trade restrictions. So as long as a miner or dealer is licensed, he or she can trade in an otherwise free market. Dealers can sell their products either as raw material or as finished products although the value addition process is highly encouraged.

Market

Currently the domestic market consumes less than 10% of the jewellery produced and 50% of the local buyers are tourists while the rest is exported. Most Kenyan gemstone products are exported to India, the USA, Germany, the United Kingdom and the Middle East. 

Legal and Regulatory framework

All unextracted minerals are the property of the government according to the mining act. Their exploration and exploitation is controlled by the Department of Mines and Geology, which also undertakes geological surveys, geo-scientific research and the general regulation of the mining sector. The department, which falls under the Ministry of Environment and Natural Resources, also grants licenses to miners and prospectors.

Investors interested in this opportunity should contact Margaret Waithaka, Manager: New Investments at the Export Processing Zones Authority mwaithaka@epzkenya.com