Policy team seeks overhaul of mining laws

The laws governing mining are set for an overhaul after a key adviser to the Cabinet joined the growing calls to give more say to residents in the management of natural resources.

Last weekend, the National Economic and Social Council (NESC) recommended training of communities on mining.

“Mining has not proportionally benefited the Kenyan economy and specifically has not benefited the local communities,” said the council.

A clear policy that guarantees locals a large share of the proceeds of mining, an audit of sector and a friendly public-private deals that benefit citizens were identified as priorities.

The proposal comes weeks after the industry launched a campaign to boost involvement of local communities in the sector.

Through their lobby Kenya Chamber of Mines, miners, explorers and mineral traders are pushing for flexible rules to give individual players room to address tension with communities.

“The existing legal framework gives government ownership of natural resources but it has not been easy to ignore communities because politicians are always giving them false interpretations,” Monica Gichuhi, the Chamber’s CEO told the Business Daily in an earlier interview.

Kenya has minerals like soda ash, fluorspar, salt, diatomite, gold and gemstones.

The Mines and Geology department says the total earnings from the sector rose by 21.1 per cent last year to Sh18.3 billion from Sh15.1 billion the previous year.

Industry players have drafted the Mining and Minerals Bill 2012 — currently before the Treasury — that, among other things, seeks sharing out the three per cent statutory royalty with the community and county governments.

READ: Experts push for laws on mining to be speeded up

“The Council noted the significant progress made in developing both the policy on minerals and the mining Bill which will guide orderly exploration, extraction and equitable management of mineral resources,” NESC said in a statement read by Public Works minister Chris Obure.