Over 30 counties to receive Sh2.9 billion in mineral royalties after decade-long wait
The government has announced that the funds held at the National Treasury since 2016 will be released starting next month after the approval of long-pending regulations.
Over 30 counties, including Kwale, Kajiado and Kilifi, will receive a combined Sh2.9 billion in mineral royalties, ending nearly a decade-long wait for their share of revenues collected by the national government.
The government has announced that the funds held at the National Treasury since 2016 will be released starting next month after the approval of long-pending regulations.
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Mining Principal Secretary Harry Kimtai confirmed the development when he appeared before the Senate Standing Committee on Land, Environment, and Natural Resources, saying the money is currently held in the Consolidated Fund and cannot be disbursed until an enabling law is gazetted.
“The money is available, but is held at the Treasury. We are awaiting the Attorney-General to gazette the regulations to allow for the release. This should happen before the end of this month,” Kimtai said, adding that the regulations are now before Attorney General Dorcas Oduor for final approval.
The PS was responding to concerns raised by senators over the prolonged delay in disbursing the royalties to counties and mining-affected communities. Leaders from mineral-rich areas have accused the government of deliberately withholding the funds.
At least 32 counties, including Makueni, Taita Taveta, Homa Bay, West Pokot, Kericho, Kakamega, and Elgeyo Marakwet, have yet to receive their mineral royalties. Kimtai cited Kwale County as an example, revealing it is owed over Sh1.38 billion by the national government.
According to the PS, the delay in disbursement was caused by the absence of an enabling legal framework, despite the Mining Act, 2016, which outlines that royalties paid by holders of mineral rights should be shared among the national government, county governments and local communities on a 70:20:10 ratio.
“The law sets the sharing formula at 70 per cent for the national government, 20 per cent for counties, and 10 per cent for local communities. However, it did not outline how to operationalise the distribution. That is why we had to draft the Mining (Mineral Royalty Sharing) Regulations,” Kimtai told the committee, which is chaired by Mombasa Senator Mohamed Faki.
He assured the senators that the process is nearing completion.
“We expect the regulations to be gazetted this month, after which the funds will be released,” he said.
Kimtai disclosed that at least Sh7.5 billion has been collected from mineral royalties since 2016. He acknowledged that the delay in distributing the funds has strained relations between mining companies and local communities.
“Communities feel frustrated. They are becoming hostile to companies seeking mining permits because they do not see any benefits,” he said.
The development follows sustained pressure from senators, who demanded answers from the Ministry of Mining regarding the years-long delay.
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