The government has moved to ban the export of raw minerals, rolling out new mining regulations designed to promote local value addition and raise earnings for host communities.
Mining Cabinet Secretary, Hassan Joho, announced the decision on Tuesday, April 14, while appearing before a parliamentary committee reviewing new rules on how mining royalties will be shared.
Speaking to the MPs, Joho said the Cabinet had resolved to stop the export of unprocessed minerals to encourage domestic processing.
“No mineral shall be exported in its raw form,” Joho said, adding that value addition within the country would deliver better economic returns and support industrial growth.
The Cabinet Secretary explained that Kenya has been losing potential revenue by exporting minerals in their raw state, only to import finished products at higher costs.
MPs Back Minerals Royalty Rules, Seek Clarity on Community Beneficiaries
The MPs raised concerns about implementation, particularly the definition of “community” and the mechanism for distributing royalty funds to intended beneficiaries.
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Kilgoris MP Julius Sunkuli questioned the lack of clarity surrounding who qualifies as a beneficiary community under the proposed rules.
“We must be clear on what constitutes a community. This definition is very critical,” Sunkuli said, warning that unclear definitions could fuel disputes in mining areas.
Vice Chairman Gichugu MP Robert Gichimu supported the concerns, stressing that the definition of community is central to the successful implementation of the regulations.
Samburu County Woman Representative Pauline Lenguris urged the Ministry to prioritize residents who bear the direct impact of mining activities.
“The community should be the primary beneficiary of the proceeds of mining before any other benefactors,” Lenguris told the Committee.
Lukuyani MP Innocent Mugabe expressed support for the proposed mining regulations, saying they had been carefully drafted and were of high quality.
He told the Committee that after reviewing the document in detail, he found little to fault, describing it as one of the strongest sets of regulations presented to Parliament.
Sunkuli also sought clarification on whether sufficient public participation had been conducted before the regulations were gazetted, as required by law.
Community Share Raised to 10 Per Cent as Treasury Delays Criticized
Under the proposed rules, the share of mineral royalties allocated to communities has been increased to 10 percent, up from the previous 2 percent.
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The regulations introduce a structured royalty‑sharing formula in which 70 percent of royalties will go to the national government, 20 percent to county governments, while 10 percent will be held in trust for communities affected by mining activities.
“The share of royalties payable to communities shall be used to facilitate projects identified by the community,” Joho told the MPs.
The Cabinet Secretary also faulted the National Treasury for delays in releasing royalty funds meant for local beneficiaries from raw minerals, saying the slow disbursement continues to hurt communities in mining areas.
He noted that although revenues are remitted to the Treasury, it often takes too long for the funds to reach the communities entitled to them.
He added that it was unfair for communities to remain impoverished while proceeds from minerals extracted from their land remain held at the Central Bank of Kenya.
The regulations are anchored in Section 183(5) of the Mining Act, 2016, and outline mechanisms for the collection, allocation, and use of mineral royalties.
They require the Cabinet Secretary to identify and publish beneficiary communities within 30 days of issuing a mining license.
In his closing remarks, MP Robert Gichimu called on the Ministry of Mining to intensify public awareness among communities in mining areas.
“The Ministry must sensitize communities on these regulations and ensure the sharing formula is enforced so that communities receive their rightful share on time,” he said.
