Parliament to vet mining firms before licensing

Mining companies will in future require parliamentary approval before being handed a license to operate in the country.

This is part of the new regulations contained in the Mining Act expected to sanitize Kenya’s mining industry.

Mining Cabinet Secretary Dan Kazungu said the introduction of the clause is expected to make mining companies more accountable while making their operations in the country transparent.

“It will require large scale license holders to be ratified by parliament to ensure full disclosure of mineral rights being issued in the country,” Mr Kazungu said.

The Mining Act 2016 replaces the old mining laws that have been in place since the 1940s.

By opening up the sector, the government hopes to be more transparent about the country’s mineral resources, something that has remained a mystery over the years.

The act further provides guidance on effectively dealing with rogue license holders through periodic progress reporting while also gauging how they engage their host communities.

“This new law has also reinvigorated the investment atmosphere by simplifying the license acquisition process under both the exploration and mining license categories,” he said.

Some of the mineral exports from Kenya include fluorspar, titanium and manganese while deposits of rare earths niobium and coal have been found. Despite having some form of mining activity, the sector only accounts for 1 percent of the GDP.

The mining sector has been shrouded in secrecy, with operations of most mining firms not known.

The CS said the new law provides clear guidance on mining activities, while promoting local small scale miners.

“Under the Mining Act of 2016, Section 7 (1), the government has put in place a formal structure to allow communities accustomed to small scale mining on their lands to continue participating and hence benefitting from the mining sector under this Act,” he said.

The ministry of mining is seeking Sh3 billion from the National Treasury to carry out an airborne survey to map mineral wealth and spur growth in the sector.

By Sophia Jerotich