A bill by Ikolomani Member of Parliament Bernad Shinali is seeking to impose hefty penalties including either a fine Ksh10 million or sentence 10 years in prison for illegal gold mining.
The Gold Processing Bill, 2023 seeks to introduce strict measures to into the gold mining industry which is characterized by unsafe and illegal practices.
Further, the proposed law hopes to introduce the Gold Processing Corporation, which will, among other functions, create national standards for operating a gold refinery and develop and maintain national standards on gold.
Other functions of the corporation will be to collect, sample, purify, melt and fabricate gold and gold products and undertake research on gold and matters relating to gold.
The bill will be introduced to the house when Members of Parliament who are on recess resume sittings on September 26, 2023.
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Introduction of mining licenses
To place checks on the illegality of the gold mining sector, the bill also seeks to introduce gold mining licenses.
What’s more, these licenses will last for a period not less than 25 years. Applicants will be required to start processing operations not less than six months after the grant of the license or as may be specified by the approved program.
According to the bill, the license shall be granted to the holder after it has been determined that the applicant has adequate financial resources, technical competence, and processing industry experience to carry out the proposed processing operations.
Other than the gold processing license, the Gold Processing Bill will require an applicant to apply for an approved environmental impact assessment license and an environmental management plan.
Gold mining in Kenya
Moreover, the proposal comes a month after a gold rush in Migori County where locals disrupted a road construction project as they scrambled for the precious metal.
The Western Kenya region has been hailed as a highly untapped area in terms of gold deposits and is envisioned as the future of gold mining in the country.
Shanta Gold, an East Africa-focused gold producer, developer and explorer reported finding gold that was valued at Ksh365 billion in March of 2022.
However, profits of gold have not been trickling down to the miners who suffer risky environments, unlicensed and weak mines and lack personal protection equipment (PPE) during mining.
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Cases of people dying during illegal mining are also common in Kenya. In May 2021, five people died while several others were injured after a gold mine collapsed in Ikolomani.
In February of 2023, a mine collapsed in Sigalagala, Kakamega burying 15 people alive.
