Locals to own stake in the coal mines of Mui

What you need to know:

  • Mr Mutua said community rights must be enhanced in the resettlement plan to be negotiated between the State and the Chinese firm, Fenxi Mining Industry Company, which will extract the resource.
  • According to the plans of the integrated resettlement approach, the government will build houses, a shopping centre, schools and hospitals.

Residents of Mui basin, whose land will be taken for a coal mining, may own individual shares in the lucrative venture.

According to a benefits sharing agreement, seen by the Nation, the landowners will get 70 per cent of their compensation in cash and 30 per cent as shares.

A previous revenue sharing formula stated that the residents would only get returns from the mining proceeds as a group alongside the national and county governments. The formula was to be determined by the proposed law on mining.

The fresh terms, in which the residents will be included in the main contract, were re-negotiated at the insistence of the Mui community liaison committee chaired by the Law Society of Kenya chairman Eric Mutua.

Mr Mutua said the proposed equity share would be held by an entity owned jointly by the community.

“The addendum of the agreement serves to fill gaps in the mining concession and address concerns raised by the community regarding compensation for their land and stake in the project,” he said.

Mr Mutua spoke yesterday at a meeting between the liaison committee and Mining ministry officials. The participants discussed the addendum ahead of the signing of the deal with investors and the government.

Mr Mutua said community rights must be enhanced in the resettlement plan to be negotiated between the State and the Chinese firm, Fenxi Mining Industry Company, which will extract the resource.

Deputy chief geologist Joseph Ndollo confirmed that all parties had consented to the new demands as contained in the agreement appendix that will be a legally binding document.

SETTLEMENT SCHEMES

The government intends to resettle the affected people in “highly developed” settlement schemes like the South Africa model eco-villages will all the basic amenities.

According to the plans of the integrated resettlement approach, the government will build houses, a shopping centre, schools and hospitals.

This will be a break from previous resettlement systems where people were given monetary compensation with a free hand to migrate to places of their choice.

Chief geologist John Omenge said the ministry was careful to avoid creating a squatters’ problem and broken families as villagers could be duped by land brokers.

Mr Omenge said the inter-ministerial committee overseeing the project was keen to ensure resettlement with a human face.
The compensation, according to him, will be done as per the World Bank standards.

“It will be easier to provide water, electricity if the displaced people are settled in one area,” he said.

Tens of thousands of families will be moved when the project to extract the 400 million tonnes of coal begins, amid fears that it will disrupt local residents’ cultural way of life.