The Government is pursuing foreign dealers behind a mineral smuggling racket.
According to Petroleum and Mining Cabinet Secretary John Munyes, the country is losing billions of shillings to cartels using fake licences to smuggle minerals.
The CS said the smuggling racket had reduced gemstones export from the country.
Mr Munyes said the cartels sneak into the country to buy the minerals, and later smuggle them through undesignated routes on the Kenya-Tanzania border.
He cited the worst hit as Taita-Taveta, Kwale and Kitui counties.
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The CS said the smuggling routes routes include Kuranze mining area, claimed by both Taita-Taveta and Kwale counties, where the dealers use motorcycles to sneak out the minerals.
Without giving figures, the CS noted that gemstone exports have drastically reduced in the country as foreign dealers continue buying the precious stones from the black market.
The CS said the cartels control the markets and prices at the expense of local dealers. He called on regional and county administrators to help dismantle the syndicates.