UK and US Impose Sanctions on British-Kenyan Businessman

The UK and US governments have imposed sanctions on British-Kenyan businessman Kamlesh Pattni, accusing him of involvement in the illicit gold trade. The sanctions also target four other individuals, including Pattni’s wife and brother-in-law, and will result in the freezing of their assets, according to a statement from the UK Foreign, Commonwealth, and Development Office.

Pattni, who was implicated in one of Kenya’s largest corruption scandals, the Goldenberg affair, has faced allegations related to the illicit gold trade in Zimbabwe. The Goldenberg scandal, which is believed to have cost Kenya at least $600 million (£470 million), saw Pattni accused of masterminding the scheme, though he has denied these accusations. He was later charged in 2006 for his alleged role, but the trial collapsed.

In a statement, the UK government described illicit gold trade as a significant threat to legitimate business, stating, “Illicit gold is an assault on the legitimate trade of a valuable commodity, fuelling corruption, undermining the rule of law, and entrenching human rights abuses such as child labour.” The statement further linked the illegal gold trade to Russia’s war in Ukraine, with the UK accusing Russia of using illicit gold to fund its military efforts, bypassing sanctions.

The sanctions are part of a broader effort by the UK to “disrupt and deter” illicit business dealings involving Pattni. The UK and other Western nations had already banned the import of Russian gold in 2022 in a bid to curb Moscow’s financial resources for the war.

In addition to his role in the Goldenberg scandal, the US Treasury Department highlighted Pattni’s alleged connections to former Zimbabwean President Robert Mugabe. The US accuses Pattni of exploiting Zimbabwe’s natural resources, enriching corrupt officials and criminal actors while depriving citizens of the benefits. Pattni was implicated in Al-Jazeera’s investigation into Zimbabwe’s “gold mafia” but has denied any involvement in money laundering or gold smuggling.

According to the US Treasury, Pattni’s illegal network spanned multiple countries, further complicating international efforts to combat illicit gold trade. The announcement comes as the UK government introduced a new programme aimed at tackling global corruption.