Kenya has marked a historic milestone in its economic landscape by hosting its first-ever Mining Investment Conference and Exhibition in 2024. The two-day event, held in Nairobi, brought together a diverse range of stakeholders, including policymakers, investors, artisanal miners, NGOs, and equipment dealers, signaling the country’s commitment to positioning itself as a premier mining investment hub in the region.

A Monumental Leap for Kenya’s Mining Sector

The conference was inaugurated by the Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs, Hassan Ali Joho. During his keynote address, Joho emphasized that the mining sector is set to become Kenya’s next economic frontier. He stressed the government’s focus on creating an investment-friendly environment through strategic policies, partnerships, and incentives for both local and international investors.

Joho also underscored the importance of ensuring that mining activities translate into tangible benefits for local communities. “It is not just about profit-making; it’s about leaving a lasting legacy for the communities impacted by mining operations,” he stated. He further highlighted plans to expedite royalty payments to counties and communities, addressing long-standing issues of delayed disbursements.

Strategic Policy Frameworks and Incentives

The ministry has unveiled several strategies to streamline and modernize the mining sector. These include formalizing artisanal mining operations, strengthening public-private partnerships (PPPs), and deploying cutting-edge technology for efficient resource extraction. Additionally, a focus on green energy minerals aims to align Kenya’s mining activities with global sustainability goals.

Hassan Joho’s leadership has brought renewed vigor to the sector, with initiatives like the National Aerial Geophysical Survey identifying nearly 1,000 mineral occurrences across the country. This survey is expected to attract both local and foreign investors, bolstering economic growth.

Milestones in Artisanal Mining and Community Development

Artisanal mining, a significant component of Kenya’s mining ecosystem, has received considerable attention. The government has formalized these operations, registering over 200 cooperatives and providing training on management, marketing, and growth strategies. The formation of County Artisanal Mining Committees has also streamlined the issuance of permits, making it easier for small-scale miners to operate within a legal framework.

The cabinet’s 2023 decision to decriminalize artisanal mining marked a turning point, allowing miners to work without fear of legal repercussions. This move has not only empowered local miners but has also paved the way for greater economic inclusion and sustainability in the sector.

Addressing Challenges and Unlocking Opportunities

Despite the progress, challenges remain, including the delayed disbursement of royalties. Currently, the national government owes counties over KSh 2.9 billion in unpaid royalties. Kwale County, one of the major beneficiaries, is entitled to KSh 1.1 billion, while Kilifi and Kajiado counties are set to receive KSh 950 million and KSh 660 million, respectively. Joho has proposed a policy to ensure that royalties are paid promptly, enhancing the immediate economic impact on local communities.

Another critical area of focus is the elimination of cartels that have historically hindered the sector’s growth. Joho has vowed to introduce transparency and accountability through digitization and open-source data repositories, ensuring that all stakeholders have access to critical information.

Looking Ahead: Green Energy and Sustainability

Kenya’s mining sector is also aligning itself with global trends in green energy. The government has identified 14 strategic minerals that are essential for the transition to renewable energy technologies. By leveraging these resources, Kenya aims to position itself as a leader in the production of materials vital for green energy solutions, such as lithium and rare earth elements.

Global Collaboration and Lessons from Peers

To enhance the sector’s competitiveness, Kenya is looking to learn from successful mining economies such as Tanzania and Indonesia. These countries have demonstrated the potential for resource-rich nations to transform their mining sectors into major contributors to GDP and employment.

In addition to seeking foreign expertise, Kenya is also working on building local capacity through training programs. The government plans to train hundreds of individuals in mining and related fields, ensuring that Kenyans are well-equipped to take advantage of opportunities in the sector.

The Path Forward

The 2024 Mining Investment Conference has set the stage for Kenya to become a key player in the regional and global mining industries. With strategic policies, community-centric approaches, and a focus on sustainability, the sector is poised for significant growth. The success of this inaugural conference highlights Kenya’s potential to attract multi-billion shilling investments and create economic opportunities for its citizens.

As the country continues to implement reforms and engage stakeholders, the mining sector is expected to play a crucial role in Kenya’s economic development. By balancing profitability with social and environmental responsibility, Kenya is charting a course for a prosperous and sustainable mining future.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

28th November, 2024