How state plans to distribute Sh2.9bn mineral royalties

Cabinet Secretary Mining, Blue Economy and Maritime Affairs Salim Mvurya has cleared the air on the distribution of royalties to those affected by mining activities.

The royalties amounting to Sh2.9 billion will be shared among the 32 counties which have been affected by the mining operations with Kwale County getting the largest share of Sh1.1 billion with Kilifi receiving Sh350 million and Kajiado Sh660 million.

The victims were evicted to pave the way for the mining operations to take place.

CS Mvurya assured locals that the state is committed to paying the amount.

"The money had already been allocated in the budget after the completion of computation of the amount of sharable to counties from the proceeds of mining operation," he said.

CS Mvurya said the Mining Act of 2016 had adopted the mining royalty sharing formula with 70 per cent going to the national government, 20 per cent to the county and 10 per cent to the communities in the mining areas.

An additional one per cent of the gross total sales from a mining investment would go to the community for projects under the framework of Community Development Agreement Committees (CDAC).

The CS said this on Monday after some of those affected by the mining activities and leaders accused the government of delaying the fund.

Victims of Maumba/Nguluku in Kwale County said they are losing hope of ever receiving the funds.

"Don't you worry the budget is there you will get your cut soon in the ration stipulated by the law," said CS Mvurya.

Mining and Blue Economy Cabinet Secretary Salim Mvurya at the site of the discovery of coltan deposits in Embu County on January 24, 2024. (Photo: Mining CS Salim Mvurya)

The CS said the royalty funds were delayed but the government is determined to see its people benefit from their local resources.

Key reforms

CS Mvurya said the mining ministry has made key reforms to improve the sector adding that among the reforms is to wipe out cartels.

He said even though the country has many high-end minerals, it lacks data hence not getting economic value.

"We have about 970 minerals in all counties. We have formed a multi-agency team to confirm the minerals and document data on the same. The team has already covered 24 counties," he said.

"There is light at the end of the tunnel because there were no guidelines on how to effectively distribute the funds, but the President directed key reforms on the mining sector that are currently being worked on."

Mvurya said the government came up with a well-formulated Royalty Fund Sharing Bill to allow the National Treasury to disburse the money smoothly.

He said the ministry was able to gather enough data on how many mining companies operate and the number of counties that should benefit from royalty funds.

He said plans are underway to release the mineral royalties as the Kenyan economy strengthens.

The CS said the ministry wants to bring sanity to the mining sector because it is directly depended on by 2.1 million people across the country.

He said all those who wish to operate in the mining industry should register and adhere to the rules and regulations.

Mvurya issued a stern warning to illegal miners that they would be firmly dealt with.

He also urged county and national leaders to be familiar with the Mining Act, as laws are constantly changing, to help spread accurate information to the public.

The committee will collect feedback and oversee the implementation of the recommended projects on Base Titanium's rehabilitated mined land after the company closes.

Kwale Governor Fatuma Achani urged the national government to keep its promise regarding mineral royalties.

She said the counties are eagerly waiting for the money to fund development.

"We had great plans for the royalty money, but years passed without a single cent in our pockets," she said.