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Thursday, September 26, 2024, Bunge Towers, Nairobi.
The Committee on Delegated Legislation, chaired by Hon. Samuel Chepkong’a (Ainabkoi), has approved significant regulations that establish a new system for determining, collecting, and managing royalty payments on minerals extracted across the country.
During a meeting today at Bunge Towers, attended by officials from the State Department for Mining, led by Principal Secretary Elijah Mwangi, the Committee endorsed the Mining (Royalty Collection and Management) Regulations, 2024. These regulations aim to create a comprehensive framework for calculating the royalty base and set specific royalty rates for different types of minerals.
While expressing support for the regulations, MPs voiced concerns about the lack of benefits for local communities living in mineral-rich areas. They urged the State Department to develop strategies that would ensure these communities see tangible benefits from the natural resources in their regions.
“As a State Department, you need to come up with strategies that will ensure members of local communities where minerals are sourced from also benefit. You have the full support of this committee,” said Hon. Chepkong’a.
The legislators also highlighted the issue of inadequate monitoring of individuals involved in mining, which makes it challenging to accurately determine the volume of minerals being extracted. They warned that this lack of oversight could lead to revenue losses, as miners might underreport the quantities they extract.
Responding to these concerns, PS Mwangi acknowledged the challenges in monitoring, citing a shortage of personnel as a key issue.
“We currently only have 50 Inspectors of Mines who are distributed across our 19 regional offices. We are in the process of hiring 76 more officers and hope they will assist in surveillance and ensure there is no illegal mining,” said the PS.
The approval of these regulations marks a significant step forward in enhancing the governance and transparency of the mining sector in Kenya, ensuring that both the government and local communities benefit more equitably from the country’s mineral wealth.
