(Mombasa) – Kenya’s Cabinet Secretary for Mining, Hassan Joho, has proposed that the country’s vast mineral resources could be a key solution to its growing debt crisis, currently standing at Ksh 10.5 trillion. During a visit to Taita Taveta County on August 16, 2024, Joho emphasized that responsible exploitation of minerals, such as titanium, gold, and soda ash, could help generate much-needed revenue to reduce the national debt.
Joho’s remarks were made at a stakeholder engagement meeting with leaders and community representatives from the Kishushe Cooperative Ranch. The event aimed to discuss ways in which local communities could benefit from Kenya’s mining sector. Joho argued that, with the country’s significant mineral wealth, it is possible to ease the financial burden that currently weighs heavily on taxpayers.
Kenya’s debt challenge has become a critical concern, with rising financial strain contributing to recent nationwide protests against a Finance Bill that proposed new taxes. These protests, which occurred from June to August 2024, further highlighted the need for alternative ways to boost national revenue.
Joho pointed out that Kenya’s mineral resources, estimated to be worth over Ksh 3 trillion, could play a major role in addressing this issue. He specifically highlighted the potential of titanium, gold, and soda ash, which already contribute billions to the national economy. Titanium alone, extracted from the Base Titanium project in Kwale, generates approximately Ksh 14 billion annually through exports. Gold mining in Western Kenya contributes another Ksh 15 billion, while soda ash from Lake Magadi is valued at about Ksh 9 billion each year.
In addition to these known resources, Joho noted that Kenya also has untapped rare earth elements in regions like Kajiado, which could add significantly to the country’s wealth if properly exploited. However, despite the potential, the mining sector currently contributes just 1% to Kenya’s GDP. Joho believes that with increased exploration, investment, and proper management, this contribution could grow substantially.
However, Joho also acknowledged that to unlock the full potential of Kenya’s mineral wealth, some key challenges must be addressed. One major issue he highlighted was the illegal mining activities and the role of cartels that exploit the sector for personal gain. Joho called on law enforcement officers to step up efforts to curb illegal mining, particularly in areas like Taita Taveta County, where such activities have been a persistent problem.
“Illegal mining has become a serious issue, and I want to make it clear that we will no longer tolerate it,” Joho stated. He emphasized that officers in charge of the region must take responsibility and act decisively to prevent illegal mining operations. “We must make sure that our people are getting the benefits they deserve from this sector, and this will only happen when we tackle corruption and enforce the law.”
Joho also proposed legislative changes to ensure that mining companies pay royalties upfront before extracting minerals. Under current regulations, royalties are paid after the sale of minerals, with proceeds divided among the national and county governments and local communities. However, Joho noted that some mining companies have exploited this system by selling minerals and using the proceeds for investment, only returning to pay royalties years later.
“We cannot allow this to continue,” Joho said. “We will introduce new laws that require mining companies to pay royalties as soon as they are paid for the minerals. The government and the people of Kenya will not wait for years to see any return on their resources.”
In addition to these reforms, Joho has adopted an open-door policy to foster better communication between government officials, mining companies, and local communities. He believes that engaging with people at all levels is crucial to understanding community needs and improving service delivery in the mining sector.
During the stakeholder engagement, Joho directed county mining officials to ensure that no mining firm would be allowed to delay royalty payments until after the sale of minerals. His approach aims to ensure that the wealth generated from mining directly benefits both local communities and the nation.
Joho’s vision for Kenya’s mining sector includes making the industry a central part of the country’s economic growth strategy, with the potential to ease the debt burden, create jobs, and improve the livelihoods of many citizens. However, he stressed that for this to be achieved, there needs to be better regulation, increased investment, and a commitment to transparency and accountability within the sector.