Kazungu calls for tax breaks to attract mineral processors

The Mining ministry is pushing for a raft of tax breaks to encourage foreign firms to set up mineral processing plants in the country as part of efforts to create jobs and improve revenues.

Mining Secretary Dan Kazungu said he had held talks with his Treasury counterpart Henry Rotich as well as Central Bank of Kenya and Kenya Revenue Authority officials on the matter.

He said they agreed to relax the tax regime and provide further incentives to make Kenya a regional mineral processing hub.

Mr Kazungu spoke when he presided over the ground-breaking ceremony for the construction of a mineral processing plant by Avalite Mining Company.

The plant will cut and process gemstones for the local and export markets.

“Kenya and other African countries lose billions of shillings when we sell unprocessed minerals and precious stones. We have to promote local processing of minerals to create wealth and jobs,” he said. Mr Kazungu said that the newly enacted Mining Act legalises mineral processing while recognising small and medium mining enterprises.

Avalite Mining Company managing director Andrew Kimani said the firm was keen on value addition “to improve the quality of precious stones while raising extractor prices for SMEs and large extracting companies alike.”