Investors in the mining sector will now be required to pay royalties at the point of loading the cargo, the Ministry of Mining, Blue Economy and Maritime Affairs has said.
- This will enable communities in mining areas get their dues and seal loopholes that have seen some investors in the sector going for years without meeting their obligations.
- According to the ministry, the royalty rates chargeable in respect of gross sales value of extracted mineral is 5 per cent for precious metals, gold and other platinoid group metals, 8 per cent for rare earth elements and radioactive minerals and 8 per cent for metallic ores, titanium minerals sand, titanium ores and Zircon.
- Royalty rate for coal, carbon dioxide, rough gemstones, cement, salt, cut diamonds and rough diamonds are at 7%, 5%, 6%, 1.6%, 1.6%, 3%, 6% respectively.
“The issue of royalties to the affected communities is important here. We have people from outside this country who have been extracting our minerals for over 10 years without paying anything to the communities. We now want this done at the point of loading the cargo,” Ali Hassan Joho, Cabinet Secretary for Mining, said.
In his presentation to the National Assembly’s Departmental Committee on Environment Forestry and Mining, the CS outlined strategies the government is putting in place to ensure that the mining sector remains beneficial to Kenyans and that all investors in the mining sector comply with the law on licencing.
“I seek your support so that my Ministry can get adequate resources and a sound framework to accelerate the growth of the mining sector”, he noted.
“Through such rules many young Kenyans will get the opportunity to grow through the sector”, CS Joho who was appearing before the Committee for the first time since he was appointed in the Ministry of Mining Blue Economy and Maritime Affairs, assured the Committee.
He at the same time challenged Kenyans to consider investing in the mining business instead of leaving it to foreigners only. He gave an example of Indonesia and China where young billionaires have been realised through mining.
CS Joho further asked the Committee to walk with him as he calls on the need to set up world class mineral laboratories for minerals concentration that will realise value addition and higher income.
He noted that his Ministry was committed to transforming the sector by having experts on every border point supported by legislation as well increased number of police officers to monitor activities and enhance compliance within the sector.
In September, the ministry issued a stern warning to individuals against mining activities on minerals classified as strategic such as Copper, Coltan and Chromite.
