Prospects of Kenya being a mineral high potential country has spurred the government to fast-track fast-tracking finalisation of the Mining (Mineral Royalty Sharing) Regulations that will pave the way for the release of Ksh2.9 billion in mineral royalties.

Consequently, the department of mining and office of the attorney general announced on Tuesday that the state was in the final stages of revising current laws and regulations to bring them in tandem with the emerging realities.

Last month, Shanta Gold Ltd, a British-listed mining company, announced that it had discovered 1.27 million ounces of high-grade gold in Kakamega County, in western Kenya with $5.28 billion (about Ksh700 billion) market value.

Mineral exploration in the rest of western Kenya, north-western county of Turkana, north-eastern counties of Garissa, Mandera and Wajir, southwestern counties of Migori, Kuria, Kisii and Narok.  

On Tuesday, Principal Secretary for Mining Harry Kimtai disclosed that money meant for mining communities in some counties has been held in the National Treasury’s Consolidated Fund since 2016 because of outdated laws and regulations.

Mr Kimtai said the government is streamlining regulations and laws governing the sector. He explained that revenue-sharing provisions are outlined in the Mining Act, 2016, needed tweaking in the wake of latest mineral discoveries. He further noted that the ministry will soon disburse the royalties following the passage and presidential assent of the Division of Revenue Bill.

The principal secretary was speaking in Mombasa during a joint session with the National Assembly Environment, Forestry and Mining Committee, the Senate Lands, Environment and Natural Resources Committee and representatives from mining communities organised by the Kenya Human Rights Commission

Mining communities were assured that the department is accelerating the finalisation of the Mineral Royalty Sharing Regulations with the Office of the Attorney General to enable them to receive their entitled share. Once finalised, the regulations will undergo nationwide public participation before they are gazetted.

“Once that is done, then the 10 per cent that belongs to the communities shall be released with immediate effect because Treasury is ready. All that money was collected previously,” the principal secretary said.

“It’s not a question of saying where the money is. The money was collected and deposited with a consolidated account; it is with the treasury, so they are aware, we have the list for all the community payments that are due to them,” he added.

Kwale County will get the lion’s share of the royalties – some Ksh1.5 billion, while the community will get Ksh880 million from revenue that was collected from Base Titanium Company. The principal secretary lauded the support from the joint committee, as they have promised to support the state department in amending laws to facilitate seamless mining operations.

Mining communities were advised to cooperate with investors to exploit resources as the benefits go to the communities. They were assured that they would not be displaced from their land without proper compensation.

To protect communities from exploitation, the department has agreed with mining companies to form joint national and county steering committees to ensure the communities are not disenfranchised and they get their fair share of land compensation.

To safeguard communities against pollution and ensure the rehabilitation and restoration of mining land, the National Environment Management Authority require mining companies to deposit an Environmental Protection Bond.

The principal secretary said there’s a need for continuous consultation with the community and capacity building of Community Development Agreement Committees. The principal secretary also promised to deepen engagement with the Kenya Human Rights Commission, which is supporting mining communities.

“We want co-existence. For a nation to develop, it must develop or exploit its resources that are available within the country so that it can use them for its own economic advancement. We need the investors, we need the public, and we need the communities,” he stated.

National Assembly Environment, Forestry and Mining Chair Charles Kamuren said some rogue mining companies have affected the lives of local communities as they have not complied with the relevant environmental and mining laws.

The committee vowed to protect the interests of the communities, calling for the closure of illegal mining operations being conducted by foreign nationals.

“The government should monitor the mining activities for the companies not to destroy the environment, lives of the people, and water sources and roads leading to the sites should be tarmacked,” said Kamuren, calling for compensation of affected communities and involvement of elected leaders.

The MP put on notice a cement firm in Rabai Sub-County that was closed down last year by Cabinet Secretary for Mining, Blue Economy and Maritime Hassan Joho but has resumed operations without complying with environmental and social impact assessment requirements.

• A Tell Media / KNA report / By Sadik Hassan