Mining sub sector of Kenya

The mineral resources sub-sector in Kenya is under developed, resulting in the rate of economic growth not being in tandem with rate of growth of the manufacturing sector. Mining and minerals currently contribute less than one per cent to GDP, but this is expected to increase with the exploitation of newly found reserves of oil, coal, natural gas and other minerals. Mining and mineral resources have the potential to significantly increase Kenya’s economic growth, which has implications for a low carbon climate resilient pathway.

The Government is therefore focused on an industrial revolution (raw material and industrial levels) that will create a strong manufacturing base and propel Kenya towards becoming Africa’s industrial hub and hence boost the economic strength of the country. Discovery, development and management of minerals are key to this revolution.

Two recent mining projects Kwale mineral sands project and Kilimapesa gold mine have put Kenyan mining on the global map. Both mines are of great national significance and together with proposed new mining law, may signal the start of the new era for mining in Kenya

Potential for gold has been discovered along with possible coal and iron ore deposits. The government intends to carry out a nationwide aerial survey to map potential mineral deposits with a view to boosting the mining sector and attracting investment

Regulatory Framework

The mining Act 1940

The mining Act 1940 chapter 306 of the laws of Kenya regualates all mining activities in Kenya.

The commissioner of mines and Goeology heads the Department of Mines and Geogology and is responsible for overseeing mining research and policy as well as implementing the Mining Act

The ownership of all mineral deposits vests in the government of Kenya

Ministry of mining

The Ministry’s mandate is to formulate legislation and mining policies and expand the industry around Mining, making Kenya a mineral and metal hub for the region.

The mining sector has been summarized to include the following

Regulatory Framework for Mining in Kenya

Minerals in Kenya