Kenya not exploiting its mineral potential

In an online editorial on Tuesday, the Daily Nation quoted Mining Cabinet Secretary Najib Balala as reporting that the ministry had given Sh845 million to the Exchequer since last year, up from Sh21 million handed over in the 2011/12 financial year.

And, the piece said, Mr Balala was confident that by June 30, the ministry would have handed in Sh1.2 billion.

The article attributed the increase in revenues for the ministry to the reforms that have been recently enacted.

I agree, but add that significant reform of the mining industry will happen when last year’s Mining Bill is enacted into law to streamline the management of Kenya’s minerals and consolidate all mining laws for ease of administration.

This Bill seeks to introduce greater participation of the public in the management of Kenya’s mineral resources and addresses such issues as grazing and farming rights, compensation where land is acquired by the state or miner, employment and training of Kenyans and use of local produce by mining companies.

These are issues that are close to the hearts of many Kenyans as the recent discovery of coal in Kitui brought so compellingly to the fore.

Indeed, the Bill seeks to introduce sustainable exploitation, utilisation, management and conservation of the environment and natural resources as well as the equitable sharing of accruing benefits.

But trust government to spoil a good thing by dragging its already lethargic lead-laden feet. In 2011, the Ministry of the Environment and Mineral Resources reported: “It is quite evident that Kenya has significant opportunities for mineral exploration, mining and processing.” It added that: “Despite the known mineral occurrences, Kenya is not yet fully explored.”

The ministry recommended the establishment of the institutional framework for transforming mining into a major player in Kenya’s economy. By this it meant formation of the Kenya Geological Survey, Kenya Minerals and Mining Authority, Kenya Mining Corporation and a Mining Disputes Resolution Tribunal.

It was not until March 5 last year that the Mining Bill, which addresses these issues, with tinkering here and there, was published. In November, it was introduced in the National Assembly.

It is not yet law yet among the critical issues which investors want in place before they can come in is a solid law that introduces certainty in the industry.

CAN CHANGE LIVES

But it is the simple fact that Kenya is not exploiting its mineral potential that sticks in the craw.

Why is Tanzania so significantly ahead of Kenya in mining of minerals? It is not that we do not have minerals. In 2011, the Ministry of Environment and Mineral Resources reported that each region of Kenya had the following minerals:

Central: Building stones and aggregate, carbon dioxide, gemstones and clay deposits;

Western: Gold, base metals and banded iron formations, ornamental stones and clay;

Nyanza: Gold, base metals and banded iron formations;

Rift Valley: Gold, base metals, coloured gemstones, carbonites with phosphorous, rare earth elements (REE, rare earth metals or rare earths), soda ash, diatomite, carbon dioxide, bentonite, and fluorspar;

Coast: Heavy mineral sands, manganese, lead/zinc, uranium, rare earths, iron ore, titanium and coloured gemstones;

Eastern: Iron ore in Meru and Kitui and coal in Kitui, Mutitu and Mwingi; and

North Eastern: Gypsum, limestone, gemstones and chromite.

Mining of rare earths can change the life of many Kenyans significantly because these chemical elements are used in many modern technologies used by many people including electronics, computer memories and networks, fluorescent lighting, magnets, health care, national defence, clean energy, cell phones, DVDs and many more.

The Mining Bill of 2014 needs to be enacted into law swiftly so that Kenya’s mining industry can be modernised, managed and regulated in a transparent and efficient way, with a view to maximising its social and economic benefits and enable it to contribute to meaningful and sustainable development.

These are not my words, but the government’s own in 2011. So, why are we poor? In 1971, founding President Kenyatta urged the technocrats of the day to fungua uchumi (open up the economy); but 44 years later, their successors are guilty of kufungia uchumi (stifling the economy).

Opanga is a media consultant; [email protected]