Players in Kenya’s mining sector have voiced concerns over discriminatory practices in permit issuance and an unfriendly regulatory environment, hindering investments in this multi-billion-dollar industry. Despite the lifting of a four-year moratorium on licensing in October last year, investors continue to face hurdles in obtaining necessary approvals from the ministry, citing unequal treatment in permit allocation.
Call for Presidential Intervention
The Kenya Chamber of Mines (KCM) has urged President William Ruto to intervene and address what it describes as bureaucratic inefficiencies within the ministry. The chamber represents the interests of various stakeholders in Kenya’s mining sector, including artisanal, small, medium, and large-scale miners, as well as explorers, prospectors, and service providers.
Sectoral Performance and Challenges
According to the Kenya National Bureau of Statistics (KNBS), the mining and quarrying sector recorded a significant 6.5% contraction in 2023, following a 9.3% growth in 2022. This decline has been attributed to reduced activities and production in key minerals such as titanium, soda ash, and gemstones.
Regulatory Framework Concerns
Artisanal miners particularly lack a business-friendly regulatory framework, leading to operational challenges and exploitation by middlemen, as highlighted in a report by Auditor General Nancy Gathungu. The audit report revealed gaps in monitoring artisanal mining operations and the delayed establishment of critical regulatory measures mandated by the Mining Act of 2016.
Impact Across Regions
The repercussions of these challenges are widespread across various mining regions in Kenya, including Taita Taveta, Turkana, Migori, and others. The stagnation in licensing and operational delays has compounded the economic impact on local communities and stakeholders within the sector.
Government Reforms and Outlook
In response to these issues, Mining, Blue Economy, and Maritime Affairs Cabinet Secretary Salim Mvurya has assured ongoing reforms aimed at revitalizing the sector. These reforms include the implementation of an online cadaster for streamlined license applications and sectoral safeguards following comprehensive mineral mapping exercises across the country.
Forward-looking Initiatives
Mvurya emphasized that these reforms are poised to transform Kenya into an attractive destination for mining investments, promoting transparency and efficiency in licensing processes. Despite the current challenges, the government remains optimistic about the sector’s potential to contribute significantly to Kenya’s economic growth and development.
