Kenya targets 10 per cent GDP contribution from mining under new 2026 policy
The proposals were presented during a public participation forum held at Magharibi Hall in Kakamega, where miners, investors, community leaders and.
Draft Mining Policy sets stage for major growth in Kenya’s mineral industry. (Photo: Handout)
The government has unveiled the draft Minerals, Mining and Beneficiation Policy 2026, setting out plans to increase the mining sector's contribution to Kenya's Gross Domestic Product (GDP) from the current one per cent to 10 per cent by 2030 through reforms aimed at expanding mineral exploration, value addition and investment.
The draft policy, prepared by the Ministry of Mining, is expected to provide the framework for the development of the country's mining industry while positioning the sector as a contributor to industrial growth, employment and export earnings.
The proposals were presented during a public participation forum held at Magharibi Hall in Kakamega, where miners, investors, community leaders and officials from the State Department for Mining reviewed the draft and submitted their views before its adoption.
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Addressing stakeholders during the meeting, Mines Inspector Philip Kirui said the policy builds on the Mining Act 2016 while introducing reforms aimed at addressing the changing needs of the mining sector.
“The government recognises that mining has the capacity to contribute significantly to economic development, and this policy provides the roadmap to achieve that vision,” said Kirui.
The draft policy, whose theme is Transforming Livelihoods through Sustainable Development and Utilisation of Mineral Resources, is built around eight priority areas. These include the legal and policy framework, mineral resource management, value addition and beneficiation, artisanal and small-scale mining, mineral promotion and marketing, sector enablers, sustainability and other issues affecting the industry.
One of the key proposals seeks to formalise artisanal and small-scale mining by integrating the subsector into the mainstream economy through structured programmes aimed at improving safety standards, productivity and earnings for miners.
Mines Inspector Jeff Muchiri said the government wants to reduce the export of raw minerals by promoting local processing and manufacturing.
“Currently, Kenya exports the bulk of its minerals in raw form, fetching low incomes on the international market. The government is committed to reversing this trend by promoting local processing and beneficiation to create jobs and retain value within the country,” said Muchiri.
He added that Kenya has continued to lose economic opportunities by exporting minerals without processing them locally and said the proposed policy seeks to reverse that trend through investment in value addition.
The draft also identifies 14 strategic minerals that are considered important for industries such as renewable energy, electric vehicle production and manufacturing. According to the government, prioritising these minerals will strengthen Kenya's position as a regional centre for mineral exploration, processing and value addition.
Officials also disclosed that the government has completed an airborne geophysical survey covering Kenya's entire landmass. The exercise identified 970 geophysical anomalies, which will now undergo ground verification to determine their mineral potential and generate geological information for investors.
Ground Chief Mining Officer for Busia County Brian Bundi urged stakeholders to continue participating in the policy-making process.
“This is your opportunity to be heard. The government has developed this policy in a consultative manner, and we want to ensure it reflects the aspirations of all stakeholders,” said Bundi.
Despite welcoming the proposals, participants raised concerns over how the policy would be implemented, especially on access to geological information, sharing of mining revenues and royalties, and the role of host communities in benefiting from mineral resources.
Investor Henry Shikanga said he had lost more than Sh1 million in mining ventures because of inadequate geological information and appealed to the government to make survey data available to investors.
“This geotechnical survey and information are critical. We need the government to make this information available to small investors so that we can make informed decisions,” he said.
Daniel Bebe questioned how local communities would benefit from mineral wealth.
“We are talking of royalties, but where are these royalties? How will these policies be implemented so that communities benefit?” he posed.
To address such concerns, the draft proposes establishing a Mineral Sovereign Fund to promote intergenerational equity and a Mineral Development Levy Fund to support regulation and growth of the sector.
It also introduces Community Development Agreements and Community Royalty Sharing Committees to oversee the distribution of benefits among the national government, county governments and host communities.
The policy further recommends establishing county artisanal mining committees in all 47 counties, creating a national register for artisanal miners and promoting mining cooperatives to improve organisation and market access. It also proposes value addition centres in gemstone-producing areas, gold refineries in gold-producing regions and mineral processing facilities to increase earnings for small-scale miners.
Artisanal miner Kennedy Masika welcomed the reforms but said their success would depend on government support.
“We welcome the idea of cooperatives and value addition centres, but without access to technology and financing, the policy will remain on paper,” he said.
Beyond mining operations, the policy addresses gender inclusion, child labour, disability, climate change and environmental protection. It proposes measures to protect vulnerable groups involved in artisanal mining while promoting safer mining practices and recommends the use of renewable energy sources, including geothermal and solar power, during mineral extraction and processing to reduce environmental impacts.
Meanwhile, the government is establishing Kenya's first gold refinery at Iguhu in Ikolomani Constituency, Kakamega County, through a Sh5.8 billion public-private partnership. Officials say the facility will reduce reliance on middlemen, provide direct access to international markets, create employment and support the country's mineral value addition strategy.
Once adopted, the Minerals, Mining and Beneficiation Policy 2026 is expected to guide the transformation of Kenya's mining sector into a stronger contributor to economic growth, industrial development and employment by 2030.