Mining firms will spend at least one per cent of sales revenues every year to uplift communities affected by their operations as the State deepens efforts to open up the sector’s activities to the public.
Under the newly published Mining (Community Development Agreement) Regulations, 2017, the mineral cash will get to community members through scholarships, educational facilities, health centres, roads, water or energy projects.
Miners could also opt to support SMEs, assist with agricultural product marketing, finance environment protection projects or support cultural heritage and sports.
The choice of a project will be determined by a Community Development Agreement Committee whose membership include the Governor, area MCA, national government representative, a representative of village elders and one person representing women.
“The (licence) holder shall spend a minimum of at least one per cent of the gross revenue from the sale of minerals in every calendar expenditure year to finance the projects under the agreement,” state the regulations published by mining secretary Dan Kazungu.
“The purpose of these regulations is to ensure that mining significantly contributes to the improved economic, social and cultural wellbeing of the community.”
The country recorded sales of Sh24 billion from mining firms, suggesting they will cede about Sh240 million based on last year’s numbers. Kenya has more than 300 local and foreign firms prospecting for minerals.
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