The mining sector has registered a historic milestone after Kenya hosted her debut Mining Investment Conference and Exhibition for 2024 as part of implementing a long-term plan for enhancing the sector’s visibility and positioning the country as the ideal mining investments’ destination in the region.
The two-day event that ran between yesterday and today in Nairobi saw the convergence of key stakeholders including policy makers, small and large-scale investors, artisanal miners, dealers, traders, equipment dealers and actors from Non-Government Organizations (NGOs) and Community-Based Organizations (CBO) with interest in the sector.
The conference was officially opened by the Mining, Blue Economy and Maritime Affairs Hassan Ali Joho who termed it as a monumental leap towards solidifying the enormous gains achieved in the sector.
He predicted that the upward trajectory the sector had taken was poised to increase significantly to the Kenya’s GDP.
During his official address, the CS reiterated his belief that the mining sector is the next economic frontier in Kenya which was rapidly awakening through strategic policy interventions, forging of partnerships and incentivizing investors to set up multi-billion shilling investments in Kenya for accelerated economic growth.
He called upon mining investments in Kenya to prioritize the establishment of enduring legacies that impacted positively on communities and the citizenry rather than focusing entirely on profit-making without the social component.
“We are proud to grow together but the challenge I pose to you is on having legacies that speak to the benefits the communities got from your operations. Minerals get depleted and they should mean something to communities. It should not just be about profits for investors,” he said.
The CS noted that envisaged growth in the sector should be cascaded to the communities through timely remittance of the royalty share intended for counties and communities as per the royalty-sharing formula in the Mining Act.
He disclosed that the Ministry was in the process of pushing for a proposal for counties and communities to be paid their mining royalty dues as soon as the investor paid up. This way, he argued, the counties and communities would feel the immediate value of minerals while eliminating the uncertainty of waiting indefinitely for money from the national treasury.
Currently, the National Government owes the counties over Sh2.9 billion in cumulated unpaid mineral royalties. According to the County Government Additional Allocation Act 2024, Kwale County is set to receive the highest share at Sh1.1 billion. Kilifi and Kajiado counties will also receive Sh950 million and Sh660 million respectively. Kirinyaga County is set the receive the lowest amount at one hundred shillings from mining activities.
While pledging his desire to see the sector transform through engaging stakeholders and other actors, the CS stated Kenya was ready to fully exploit the potential in the 14-strategic minerals through the National Mining Corporation to propel the country into the transition and adoption of green-energy.
Hassan Joho was accompanied by the Principal Secretary in the State Department for Mining Elijah Mwangi and other senior department officials. Joseph Lagat, the National Mining Corporation and Sophie Kutiti, the chair for the Mineral Rights Board were also present.
The 2024 mining conference comes at a time Kenya’s mining sector has reported significant milestones especially in support towards artisanal miners and mining communities.
In recognition of the centrality of artisanal miners in Kenya’s mining ecosystem, the cabinet in 2023 decriminalized their operations thereby paving way for their formalization through organized marketing cooperatives.
To date, over 200 cooperatives have been registered and their officials trained on management, marketing and growth strategy. Additionally, the government has gazetted over 27 County Artisanal Mining Committee to facilitate the issuance of mining permits to artisanal miners in the county.
Other achievements include completion of the National Aerial Geo-Physical Survey (NAGS) that led to the discovery of 970 mineral occurrences in Kenya.
By Wagema Mwangi