Kenyas mineral royalties expected to hit Ksh 1.6B

Kenyas mineral royalties expected to hit Ksh 1.6B

The country’s earning from mineral royalties is expected to hit Ksh 1.6 billion by the end of this year, up from Ksh 1.35 billion in 2015.

This comes as the Ministry of Mining exuded confidence that ongoing reforms in the sector will see the annual revenue the country generated rise to Ksh 300 billion by 2030 up from Ksh 1.3 billion.

According to Mining PS Dr. Ibrahim Mohamed, the country has a high potential of minerals which have not been tapped.

“We earned Ksh 1.35 B in royalties from minerals last year and our projections are that this will hit Ksh 1.6 B by the end of this year,” he said.

He attributed challenges to the sector to archaic laws noting that for over 70 years the mining sector had operated without a law or a framework.

Mohamed was, however, quick to note that this would now be a thing of the past as the Mineral Bill was in the last stages before the President signed it into law.

“The mining law, which has been missing for over 70 years, will help regulate the sector whose potential is yet to be fully utilized,” he said.

He noted that under the new law, the national government will get 70 percent of revenue generated from the minerals, twenty percent will go to counties and the rest to local communities.

The PS said that they had developed sixteen regulations which will help address the issue of employment, CSR and enforcement.

Mohammed noted that for years, the country had continued to lose millions by exporting minerals in raw form.

To this end, he said that the construction of a mineral value addition center in Voi was in the last phase adding that it would be complete by the end of this year.

“Previously, we had to export our minerals to neighbouring countries so that they can be analyzed in terms of quality but this will now since we have our own laboratory,” he said.

The PS added that the Ministry had embarked on a geology study across the country so that they could identify regions with minerals as part of seeking more investors.

“This study will help us know the location and amount of mineral in various parts of the country thus making it easier for investors to plan for their business,” he said.

Mohammed noted that currently, the country is involved in mining of gold, titanium, iron and ore but was quick to note that there was presence of others minerals.

Report by Karanja Kimani

Tags:

kenya mineral royalties

Want to send us a story? Submit on Wananchi Reporting on the Citizen Digital App or Send an email to wananchi@royalmedia.co.ke or Send an SMS to 25170 or WhatsApp on 0743570000

Leave a Comment

Comments

No comments yet.

latest stories