KNCCI Mining Committee Chairman Engineer Charles Komen alongside other Mining Stakeholders led by Kenya Chamber of Mines (KCM) attended a Mining Stakeholders Engagement Roundtable held by the Ministry of Mining, Blue Economy, and Maritime Affairs on 11th July 2024. Critical issues affecting the mining sector were discussed Co-Chaired by PS Mining Elijah Mwangi. Key Highlights were as below touching the sector;

GDP Contribution and Growth Potential:

The discussion focused on increasing the mining sector’s contribution to Kenya’s GDP from the current 1% to an ambitious 10%. This growth would have significant economic implications.

A technical committee formed by the ministry aims to address bottlenecks related to prospecting and mining licenses, which have been hindering investment.

Iron Ore Duty and Legislative Proposals:

The iron ore duty of $175 per tonne was a topic of discussion. Scrapping it through a special supplementary bill could positively impact the industry.

These legislative changes can create a more favorable environment for mining companies and investors.

Mineral Movement Permits and Regional Empowerment:

Delays in mineral movement permits issuance were acknowledged. Empowering regional mining officers to streamline the process proposed as a step in the right direction.

Efficient permit issuance is crucial for smooth operations and investor confidence.

Strategic Minerals Licensing:

The identification of strategic minerals as a bottleneck highlights the need for a review. Proposal to delist some minerals from the strategic category to facilitate growth in the sector.

Importance of Dialogue:

Consistent dialogue between stakeholders and the State Department of Mining is essential. It fosters collaboration, problem-solving, and sector-wide progress.

Overall, this engagement demonstrated a commitment to improving the mining sector’s efficiency, transparency, and contribution to Kenya’s economy. KNCCI is in discussions with NAMICO to formalize a MOU to spur growth in the sector.