Kenya plans to restrict the export of some minerals in their raw form after the completion of ongoing construction of processing plants, a move that heralds a major policy shift aimed at maximizing profits for the government and communities.
The Ministry of Mining says that gold, precious stones and granite will be the first batch of minerals to be exported after value addition.
Kenya has signed a multi-billion shillings deal with private investors to set up a Sh5.8 billion gold refinery in Kakamega and a Sh2.5 billion granite processing plant in neighboring Vihiga County in preparation for the policy change.
This is in addition to the revival of fluorspar mining in Elgeo Marakwet with an estimated investment of Sh4.8 billion and the Gemstone Value Addition Center already operating in Taita Taveta.
Mining Principal Secretary Elijah Mwangi said the construction of the gold and granite factories is expected to be completed by the middle of next year.
“So, it means that from now on, for all the gold that will be mined in Kenya, we are coming out with a policy to refine it in Kenya. We also have a granite processing plant in Vihiga where there is already an investor on site and a gem center in Voi where We purchased state-of-the-art equipment so that our gemstones can be value-added before exporting.”
“We have a responsibility to ensure that the minerals that are mined in Kenya benefit the people of Kenya and the community in which the minerals are extracted.”
Gold mining over the years has been largely characterized by artisanal and small-scale operations in a mostly informal process although many medium-sized companies have entered the industry.
Kenya’s earnings from gold mining fell to Sh3.17 billion in 2023, from Sh3.38 billion the previous year, according to the 2024 Economic Survey.
The data shows that 410 kilograms of gold were produced last year, down from 563.6 kilograms in 2022.
The country is also believed to contain large deposits of granite in Vihiga and its environs. Granite is used to make kitchen countertops, tiles, terrazzo, monuments, mantle pieces, and more.
“Going forward, we would like the minerals to be processed in-country to the extent of the technology we have here. We have four value addition centers in the pipeline,” Mr Mwangi said.
Kenya has been struggling for years with illegal mining and extraction of minerals despite a mining law that stipulates a penalty of up to Sh10 million, imprisonment of up to two years, or both.
Mineral smuggling, on the other hand, is classified as an economic crime attracting a fine of up to Sh1 million or 10 years imprisonment upon conviction.
“We have seconded officers to the border points to ensure that minerals meant for export are approved. We have officers at KPA (Kenya Ports Authority in Mombasa), JKIA (Jomo Kenyatta International Airport) and all other border points. This has reduced mineral smuggling which is Economic crime.
Although mining activity has been present in the country for more than 50 years, productivity has remained low, with large-scale operations limited to soda ash and mineral sands, and since 2013, titanium ores at Kwale have dwindled.
The country is believed to have significant deposits of copper, coltan, niobium, manganese and rare earth minerals, which remain under-exploited, dwarfing the mining sector’s contribution to the national economic output.
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