Kenya to register small-scale miners under cooperatives
Kenya’s President William Ruto has announced a series of measures aimed at streamlining the mining sector in Kenya. These measures include the registration of artisanal and small-scale miners in cooperatives, increasing financial support for the extractive sector, and promoting value addition, technical support, and access to markets.
The cabinet has passed resolutions to provide greater financial support to the extractive sector. The lack of funding has been identified as a barrier to the sector’s growth. President Ruto aims to increase the contribution of the mining sector to the national GDP from 1% to 10%. Artisanal and small-scale miners contribute over Sh12 billion annually to the economy and employ more than 250,000 people.
Royalties
Mining royalties have been on the rise, increasing from Sh1.6 billion to Sh3.8 billion in the last year. The government plans to further increase royalties to benefit communities living in mining zones, targeting Sh15 billion by next year and Sh50 billion in the next five years.
President Ruto has issued a warning to mining companies operating with expired licenses. Approximately 1,400 companies have been operating with expired licenses, and he has urged them to renew their licenses immediately.
The Head of State directed the iron ore mining company, Samrudha Resources Kenya Limited, to pay Sh20 million owed to the community as part of the company’s Corporate Social Responsibility. The company had previously agreed to pay a total of Sh30 million owed to the community in installments.
Cabinet Secretary for Mining, Petroleum, and Blue Economy Salim Mvurya emphasized that communities must benefit from mining activities in their areas. The ministry will follow up to ensure that the balance of the owed amount is paid to the community.
