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Kenya Mining Policy Popular Version-LowRes
Kenya Mining Policy Popular Version-LowRes
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Minerals Policy
THE POPULAR VERSION
© Government of the Republic of Kenya
This publication is a popular version of Kenya’s new Mining and Minerals Policy
(2016). The publication briefly highlights the background and situation analysis
informing the policy. It outlines the Policy’s main goals, principles and strategies
and its institutional and implementation frameworks.
This publication has been developed with technical assistance from the
International Development Law Organisation (IDLO), with funding from the United
States Agency for International Development (USAID). The views expressed herein
do not necessarily reflect the views or policies of IDLO and its Member Parties or
USAID and the US Government.
Introduction 1
Iron Ore
K
enya is rich in mineral tor and provides a basis
resources with known Increased for reviewing the sector’s
deposits of soda ash, exploration is also almost obsolete legal
fluorspar, titanium, gold, framework and ad hoc reg-
coal, manganese, iron ore, expected to lead ulations. It further aligns
gypsum, diatomite, chro- to new mineral the country’s mining sec-
mite, limestone, and silica discoveries in the tor with the aspirations of
sand. Indications are that country Kenya Vision 2030, the pro-
the country is potentially visions of the Constitution
rich in rare earth miner- of Kenya (2010) and the
als, and increased exploration is expected African Union Mining Vision (2009) which
to lead to new mineral discoveries. The aims at positioning mining as a key driver of
government has therefore formulated this Africa’s socio-economic development.
Mining and Minerals Policy (2016) to the
enable the country obtain maximum ben- The economic development strategies pur-
efits from its future mineral deposits. sued by the government of Kenya over the
past decades since independence did not
The Policy comprehensively addresses the prioritize the development of the country’s
gaps that have existed in the mining sec- mining and mineral resources sector. The
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Situation Analysis
The process of preparation and formulation of the Mining and Minerals Policy (2016)
2
involved an analysis of the prevailing situation in the country’s mining industry as
well as assessment and review of the factors influencing the sector’s performance.
This phase of the preparatory process provided an in-depth understanding of
thechallenges facing Kenya’s mining and mineral resources sector and forms the basis
for formulating the Policy’s strategies. The situation analysis undertaken highlighted
several key issues and challenges:
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Mining and Minerals Policy | 2016 | The Popular Version
Mine Quarry
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Mining and Minerals Policy | 2014 | The Popular Version
mining processing methods, which expose Despite such negative associations, main-
them to risk of injury and contact with haz- streaming ASM has immense potential
ardous materials. The analysis further indi- to contribute to the development of the
cated that child labour is prevalent in ASM, country’s mining industry by generating
hence the need to enforce the appropriate employment and income; widening the tax
laws to curb this inhumane and unlawful base; adoption of safer, healthier and more
practice. environmentally compliant standards; and
creation of synergies with the formal large
scale mining sector.
2.8 Inadequate Institutional
and Human Capacity
2.10 Local Participation
Mineral exploration and mining is a highly
technical field which requires specialized Large scale mining operations in Kenya are
skills and well-structured and equipped mostly controlled by foreign firms and indi-
institutions. Currently data acquisition and viduals mainly due to the industry’s inherent
regulation of the industry are administered complexities. Local participation has further
by one department (Mines and Geology) of been limited by inadequate financial and
the Ministry of Mining. This arrangement technical capacity and expertise, as well as
undermines efficiency and effectiveness lack of guidelines on local content and value
given different challenges arising from the chain participation. The absence of policy
two respective mandates. Further, the exist- measures to promote preferential sourcing
ing institutional set-up lacks relevant sup- of goods and services by mining companies
porting institutions, thus inhibiting effec- from localities of operations and local firms
tive enforcement, compliance and service have led to low technology transfer and
delivery. entrepreneurship.
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Mineral excavation
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Policy Goal, Guiding Principles,
Policy Goal
Objectives And Strategies
Objectives
3
The overall goal of the Mining and Mineral The Policy’s key objectives are to :
Resources Policy is to set out frameworks, • Provide long term policy direction and
principles, and strategies to provide for legal framework which conform to cur-
exploration and exploitation of mineral rent industry needs, trends and interna-
resources for the country’s socio-economic tional best practices
development.
• Provide a strategy for clear, simple, pre-
Guiding Principles dictable, transparent and accountable
licensing procedures in the mining and
The guiding principles of the Mining and
mineral resources sector including access
Mineral Policy are:
to land
• Ensuring inter-generational equity and
sustainable utilization of mineral resourc- • Provide a framework for a well structured
es so that the country’s mineral wealth and globally competitive fiscal regime
benefits current and future generations
of Kenyans • Enhance acquisition, processing and dis-
semination of geological and mineral
• Integrating sound environmental pro- data and information to investors and
tection, safety and health concerns in other key stakeholders including the pub-
mineral resources development, to make lic
sure that there is equitable access to min-
eral resources and benefit sharing at the • Provide a strategy for marketing, promo-
national, county and community levels tion and value addition of minerals
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Mineral sampling
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Policy Strategies 3.4 Access to Land for
Mining Activities
3.1 Regulating the Mining Strategy 4: Develop legislative
Sector
mechanisms for accessing land for mineral
Strategy 1: Put in place a simple, stable, development
predictable, transparent, efficient, and The constitution allows for government (or
unified regulatory framework for the public), community and private types of
mining sector land ownership. Mineral right holders are
required to obtain consent from owner or
This strategy involves putting in place a new lawful occupier of land in which their opera-
mining legislation to replace the outdated tions are to be undertaken. Due to the high
and ineffective Mining Act, Cap 306 of 1940. priority given to the mining and extractive
The new legislation will regulate rights and industry as a whole, the government intends
interests for all kinds of minerals including to deploy liaison officers to facilitate such
construction and industrial minerals. negotiations and address other community
related needs for purposes of achieving and
maintaining harmony in the industry.
3.2 Concession Management
and Mineral Rights Access to land for mining purposes may
Allocation entail compensation, relocation and resettle-
ment of the affected people. In this regard,
Strategy 2: Develop a transparent the government shall ensure prompt, just
licensing system which will enable the and adequate compensation. Where reloca-
efficient management of concessions and tion and resettlement is unavoidable, they
allocations of mineral rights will be done with due respect to basic
human rights as enshrined in the constitu-
The strategy will be effected through use tion and international standards and best
of an online Transactional Mining Cadastre practices. These issues require multi-sectoral
Portal that will be based on the new min- interventions and there shall be concerted
ing legislation and enabling regulations. efforts to involve relevant institutions and
An online mining Cadastre Portal enables stakeholders.
online applications for mineral rights thus
ensuring efficient, effective and transparent
concession and mineral rights issuance. 3.5 Health, Safety and
Environmental Regulation
3.3 Geological Data and in Mining
Information Strategy 5: Achieve an acceptable
balance between mining and
Strategy 3: Enhance collection and access
environmental conservation and ensure
to geological data
that the sector operates within the
In order to implement this strategy, the approved (national and where necessary
government will conduct a countrywide air- international) standards of health,
borne geo-physical survey and also acquire safety, human rights and environmental
space borne data. These will be followed up protection
by ground surveys to identify potential min-
The environmental, health and safety stan-
eralized zones. The information collected
dards which govern the conduct of eco-
will be hosted in a Geo-Data Bank and
nomic activities in the country are available
availed to different stakeholders depending
under various legal and regulatory regimes.
on need and user rights arrangements.
In addition, the government will develop
specific environmental and health and safety
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Artisanal Miners sieving gold crystals
• The establishment of the National Mining small scale mining expressly reserved
Corporation for Kenyans using simplified application
• Listing in local stock exchanges procedures
Strategy 11: Develop a framework for • Providing advice and support on forming
mainstreaming and formalizing artisanal representative associations and assisting
and small scale mining operations in order them in tax compliance
to support livelihoods and entrepreneurship
The government will remove barriers that
hold back the development of artisanal and 3.12 Gender, Youth and
small scale mining particularly lack of access Inclusiveness in Mining
to finance, recognized mineral rights, inad-
equate technical capacities and incentives to Strategy 12: Develop and implement
operate legally. This will be done through frameworks, structures and mechanisms
the following measures: that ensure equitable participation,
• Assisting artisanal and small scale miners ownership and decision-making
to obtain fair market prices through con- value chains by women, youth and
trol of illicit dealings in minerals through disadvantaged groups
appropriate licensing and provision of The government will implement a com-
market information and training munity liaison framework that ensures that
• Facilitating access to credit through vari- women, youth, persons living with disabili-
ous means such as cooperative savings, ties, marginalized groups and communi-
pooled equipment leasing arrangements, ties are involved in decision making and
government supported concessional programmes in mining. Through the imple-
lending schemes and assistance in obtain- mentation of its regulatory frameworks and
ing finance and business training skills. programmes, it will ensure that they have
equitable access to ownership, technology,
• Setting up a minerals licensing system capital, local content and value addition
under the new mining legislation that opportunities, employment, training, knowl-
will offer specific mineral titles suited to edge and decision making value chains.
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Institutional Framework
4. Institutional Framework • Internationally accredited Mineral
4
Certification Laboratory and Geo-Data
In order to achieve the goal, objectives and
Bank. This agency will be responsible for
strategies outlined in this Policy and actual-
carrying out several functions such as
ize the potential of the mining industry, the
analyzing and certification of minerals;
Government will put in place a new and
identification of precious and semi-pre-
appropriate institutional framework through
cious minerals; undertaking research on
the establishment of requisite Directorates
techniques for analysis of minerals; and
and Specialized agencies:
provision of testing services (Assay and
• Directorate of Mines will be in charge of
Lapidary Services).
administration and management of poli-
cies and laws affecting the sector; provi- • Mineral Audit Agency will determine the
sion of technical services; automation of rightful royalties and taxes payable to
licensing for exploration and mining con- Government from minerals produced;
cessions; compilation and management prevent the smuggling of minerals and
of mining data; arbitration of mining evasion of royalties; monitor and audit
disputes; and health, safety and environ- minerals produced and exported; audit
mental issues. capital investments and operating costs
of mining companies; and advise on
• Directorate of Geological Surveys it will
competitiveness of Kenya’s mining envi-
undertake,using state of the art technol-
ronment and fiscal regime in relation the
ogy, a systematic geological mapping of
rest of the world.
the whole country to assess and provide
information on the mineral wealth of the • National Mining Corporation will be
country; produce and publish geologi- established to serve as the investment
cal reports and maps to assist in plan- arm of the national government in the
ning and investment in mining; undertake mining industry. It will be responsible for
laboratory analysis of rocks, mineral ores, investing the proposed 10 percent free
and precious and semi-precious metals; carry interest in large scale mining opera-
and undertake research related to geo- tions or purchase of shares on the Nairobi
logical and tectonic activities including Securities Exchange on behalf of the
monitoring of geological and mining government. It will carry out its business
hazards. related to mining alone or in conjunction
with any other person, firms or bodies.
• Directorate of Mineral Promotion and
Value Addition will be in charge of mar- • National Mining Institute will be estab-
keting opportunities in investments in lished to build capacity and address the
minerals and promotion of value addition skills gap which has over the years slowed
of minerals as well as providing techni- down the growth of the mining sector.
cal assistance and extension services on The Institute will offer technical training in
mineral processing and value addition to extractive industry related disciplines and
small scale and artisanal miners. ensure the availability of adequate num-
bers of skilled personnel such as min-
• Directorate of Resource Surveys and
ing engineers, geologists, geophysicists
Remote Sensing will be mandated to col-
and metallurgists. The Institute will also
lect, store, analyze, update and dissemi-
be tasked with undertaking innovative
nate geo-spatial information on natural
research on the extractive industry.
resources, including land use and land
cover mapping.
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• Mineral Rights Board the Board will excluded and restricted; declaration of
advise and give recommendations in writ- certain minerals as strategic minerals;
ing to the Cabinet Secretary Mining on cessation, suspension or curtailment of
various issues including: granting, rejec- production in respect of mining licenses;
tion, renewal, revocation and transfer of fees , charges and royalties payable for a
Mineral Rights Agreements; areas suit- mineral right or mineral; and other perti-
able for small scale and artisanal mining; nent matters referred to it.
areas where mining operations may be
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Framework for Policy
Implementation
The Ministry of Mining has the main respon- Policy Implementation
5
sibility for the oversight of the implementa- Timelines
tion of the Mining Policy (2016). In carrying
out this responsibility the Ministry will col- The following main activities will be imple-
laborate with other government ministries, mented within the indicated timeframes
departments and agencies, the National under the Policy Implementation Plan:
Assembly, the private sector and other key
stakeholders. • Strengthening Regulation of the Mining
Sector (2016)
Financing of the Policy
• Putting in place transparent licensing
Implementation of the Policy will require procedures for Concessions and Mineral
substantial resources, which will be raised Rights Allocation (2016-2017)
through the following sources:
• Establishment of an enabling institutional
framework for mining sector (2013-2018)
• Annual budgetary allocations by the gov-
ernment • Development of geo- data and informa-
tion banks (2013-2020)
• Funds mobilized through Public and
Private Partnership (PPP) arrangements • Putting in place an enabling and com-
petitive Fiscal Regime for the mining sec-
• Loans and grants from Development
tor (2014-2017)
Partners, especially for activities which
require substantial financial resources • Development and dissemination of Health,
such as airborne geo-physical surveys Safety and Environmental Regulations for
the mining sector (2013-2018)
Monitoring and Evaluation • Implementing the strategy for promotion
and value addition for minerals (2013-
The Policy will be continuously monitored Onwards)
and progress reports evaluating its imple-
mentation produced on a regular basis. • Establishing an enabling framework for
Such a process will facilitate achievement Artisanal and Small Scale Mining (2013-
of the intended policy goals and objectives. 2018)
The mining sector is dynamic and is affected
by new developments emerging locally, • Establishment of a framework for equi-
regionally, or internationally. The Policy will table sharing of mining benefits (2013-
thus be reviewed every five years to ensure 2017)
that it remains relevant and conforms to the
prevailing best practices in the industry. • Development and establishment of a
framework for local equity participation in
mining investments (2013-Onwards)
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MINISTRY OF MINING
P.O. Box 30009, 00100, Nairobi, Kenya
Works Building, Ngong Road
Nairobi, Kenya
Tel: +254 (020) 2723101
Fax: +254 (020) 2714398
Email: info@mining.go.ke