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Govt’ Shuts Down 3,000 Mining Companies

The mining cabinet secretary said that mineral smuggling is an economic crime that is punishable by law.

October 4, 2023
Reading Time: 3 mins read
Govt' Shuts Down 3,000 Mining Companies

An image of some gold mined in Migori PHOTO/Courtesy

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Mining Cabinet Secretary Salim Mvurya has ordered for the shutdown of 3,000 companies including illegal miners and mineral dealers.

In a statement on October 4, the Mining cabinet Secretary said that mineral smuggling is an economic crime that is punishable by law.

“We resolved yesterday that mineral smuggling is an economic crime and will be punishable as per the laws of our country,” he said.

Additionally, CS Mvurya said there will be an engagement forum to discuss how the business can operate like any other in the country within the legal framework.

Govt' Shuts Down 3,000 Mining Companies
An image of a man in a mining site PHOTO/Courtesy

“We will also call on stakeholder engagement forum in the next 2 weeks so that we can have a conversation on how we can further make better, the reforms on the sector to make mining a viable business.

A business that can operate like any other and that should operate within the framework of the law,” he added.


Also Read: Kenyans Rush to Tanzania for Cheaper Fuel


Also, the CS stated that special officers will be deployed to ensure the safety of both the minerals and the business.

The mining cabinet secretary noted that the mineral markets shall be open in all regions to facilitate trade, adding that all mineral dealers will be required to operate from the set market.

Further, Mvurya asked interested members of the public to join cooperative societies for issuance of permits and licenses.

Illegal Operations

CS Mvurya noted that the number of mining operations shut down is likely to increase as the government had already profiled all illegal miners and operators.


Also Read: Why Fuel Prices Shot Up to a Record High


“Enforcement has been beefed up through the Regional Mining Offices. The Ministry is setting up an enforcement team in collaboration with other government agencies in fighting the vice,” Mvurya stated.

The move by the Ministry of Mining to shut the 3,000 operations was made a day after the Cabinet recommended a crackdown on illegal mining operations in Kenya.

Cabinet Meeting

In addition, the CS stated that the move was motivated by a cabinet meeting held on October 3 seeking to dignify the work of all citizens through accountability and formality.

“To give dignity to the work of every citizen, the Cabinet vacated the prohibition on mining using traditional and customary means known as Artisanal Mining.

To enhance accountability and formalization of the work of an estimated 800,000 artisanal miners in Kenya, Cabinet approved the proposal that the miners be encouraged to form co-operatives or groups, which will in turn receive group permits,” read part of the cabinet dispatch.

Govt' Shuts Down 3,000 Mining Companies
Image of men in a mining site PHOTO/Courtesy

Tags: Cabinetgold oreMiningSalim Mvurya

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