Bill to share out mineral income
What you need to know:
- The Bill is likely to elicit a heated debate between the national and county governments after the latter said natural resources should also be devolved to ensure counties that had mineral deposits were not exploited.
All minerals will be under the national government, with proceeds from mining equitably shared out with counties should a Bill before Parliament be passed.
The Bill is likely to elicit a heated debate between the national and county governments after the latter said natural resources should also be devolved to ensure counties that had mineral deposits were not exploited.
The Mining Bill, 2014 was tabled Tuesday before the House by the leader of the Majority, Mr Aden Duale.
New system
The existing legislation relating to mining would be repealed and a new system for the management of minerals in Kenya, established.
“This Bill proposes to establish the legal framework within which operations in the mining sector shall be conducted,” the Bill introduced for the first reading, reads.
This is in line with the Constitutional provision that envisions public participation in the management of mineral resources.
“All minerals are vested in the National Government. The Bill provides for restrictions on the acquisition of mineral rights and acquisition of rights in minerals,” the Bill reads.
It also proposes to consolidate several laws relating to the sector, in order to ease the administration.
The Bill excludes the application of the Act to Petroleum and hydrocarbon gases.
However, critics of the Bill argue that it places immense powers on the Mining Cabinet Secretary who has powers to suspend or revoke a mineral right if the holder does not conform to licensing terms.
Governors have been pushing for devolution of natural resources to the counties and might not be comfortable with having all the minerals under the national government.
