Mvurya reports key mining sector growth, says 1,200 investment bids received
By Farhiya Hussein |
Mvurya said plans to revitalise the once-neglected sector had proven fruitful, benefiting small-scale artisanal miners who previously received little attention due to a lack of organisation.
The mining sector has received more than 1,200 investment applications, signalling significant growth, Cabinet Secretary Salim Mvurya has reported, attributing this to streamlining operations.
Mvurya spoke in Mombasa County on Wednesday before the National Assembly Departmental Committee on Environment, Forestry and Mining, chaired by Nakuru Town East MP David Gikaria.
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The parliamentarians summoned him to answer questions on key issues in the sector, including investments and strategies to ensure both the public and the country greatly benefited.
Mvurya said plans to revitalise the once-neglected sector had proven fruitful, benefiting small-scale artisanal miners who previously received little attention due to a lack of organisation.
He also noted that the budget had been revised upwards, from Sh136 million to Sh4 billion.
“Kenya is attracting investments in mining. I think what happened over time was that, because the sector was left unattended, there were not any regulations to inspire more investment," he said.
"With regulations put in place to make sure people get licences, we have received more than 1,200 applications. This means people are inspired to venture into the sector."
Mining CS Salim Mvurya is seen with members of the National Assembly Departmental Committee on Environment, Forestry and Mining, led by chair David Gikaria, during a press briefing in Mombasa on April 3, 2024. (Photo: Farhiya Hussein)
Mvurya also addressed the matter of mining royalties, saying that since the Mining Act of 2016 was passed, none had been shared, but that this has changed.
“This is the first time a framework has seen the release of Sh2.9 billion to the counties. This is an accumulation from 2016. From this financial year onwards, we will be consistent in sharing the royalties, with 20 per cent going to local governments and 10 per cent to local communities,” he said.
Mvurya further said the government was planning to gazette more mining sites and would undertake public participation once feasibility studies are completed, in Kwale and Kilifi counties in particular,
“We are working with county governments to make sure that whoever is mining is also paying their dues. Most of them are not paying taxes."
The CS also said the government was upgrading laboratories across the country to meet international standards.
“We are decentralising lab services across the country and creating nine new laboratories to enhance testing," he said, adding contractors would soon begin the work.
Gikaria said they summoned the minister to get insights on actions taken to enhance mining in Kenya.
“The budget was increased so we wanted to follow up on whether they utilised the money as expected last year and this year," he said, adding that they also needed to inquire about the cancellation of licences for sites in Marsabit County.
He noted that there have been conflicts in Marsabit and other counties as a result of mining.
Emphasising the committee's mandate to oversee the sector and ensure Kenyans' lives are improved, Gikaria said, "Our work is to defend Kenyans", hence the need for detailed reports from Mvurya's ministry.
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