The Kenyan government has announced the end of a four-year nationwide ban on new mining licenses, with the aim of rejuvenating the country’s mining industry and enhancing its role in economic growth.
This moratorium, which was imposed back in December 2019, effectively halted the issuance of permits for all new mining projects while Kenya worked on overhauling its outdated mining regulations.
The lifting of this ban now opens up fresh investment opportunities in sectors such as construction materials, industrial minerals, and gemstones across the East African nation.
According to Mining Cabinet Secretary Salim Mvurya, the moratorium has been lifted for all construction and industrial minerals.
He has identified 55 minerals and rocks, including limestone, gypsum, granite, and various gemstones, that can now be mined under new permits without restrictions.
However, it’s important to note that the government will maintain stringent controls on what are termed “strategic minerals,” including gold, copper, rare earth metals, and others.
These minerals will be subject to individual assessments and approvals by mining officials, emphasising the government’s commitment to balancing economic development needs with environmental concerns, governance, and revenue considerations associated with the extraction of Kenya’s most valuable natural resources.
“Mineral smuggling has been declared an economic crime and punishable as such,” Mvurya emphasized. Better enforcement is key to ensuring Kenya benefits from its resource wealth.
The government also aims to formalize artisanal and small-scale mining, which provides income for an estimated 100,000 Kenyans but has often operated outside the law.
“Artisanal mining activities has been decriminalized,” Mvurya explained. “Directed to form marketing cooperatives for consideration on issuance of Artisanal Mining Permits.”
Bringing artisanal miners into a legal, regulated system is a major goal of the reforms. But mining companies of all sizes will face stricter requirements before resuming extraction, like updating ownership documents, tax compliance and inspection of mineral shipments.
“We want to thank all investors and players in this sector for their patience during this period of reforms,” Mvurya said. He pledged that stakeholder engagement will continue in the weeks ahead as further changes are considered.
