Johnstone Muthama claims that the government has denied his firm, Rockland Kenya Limited, an export permit, causing it to incur huge losses.
The politician-cum businessman says the firm was given a special mining lease in 1991 and the same was extended in 1996, and again renewed in 2012 to 2033.
He says that the firm has complied with all requirements and paid tax and other fees to the government based on the exported minerals.
Former Machakos senator Johnstone Muthama has sued the Mining Ministry over a mining export licence row.
Mr Muthama claims that the government has denied his firm, Rockland Kenya Limited, an export permit, causing it to incur huge losses.
In the papers filed at the Milimani Law Courts, Rockland Kenya lists the Attorney- General and Mining secretary as the respondents.
“I verily believe that the refusal and or delay by the first respondent in proceeding to have issued to us export permits is in complete contravention of our rights as provided for in the Constitution and the Fair Administrative Action Act,” says Mr Muthama in an affidavit.
The politician-cum businessman says the firm was given a special mining lease in 1991 and the same was extended in 1996, and again renewed in 2012 to 2033.
He says that the firm has complied with all requirements and paid tax and other fees to the government based on the exported minerals.
The firm applied for the export permit in October 2017 to enable it sell minerals overseas. However, it alleges that the mining CS in September 2017 wrote a memo to the principal secretary mining and the director of mines imposing new conditions before the issuance of the export permit.
The firm claims that denial of the permit is not anchored in any law and that it is causing it to incur heavy losses.
The firm further says that it has invested heavily in work permits for qualified personnel to help run the business, which it claims is occasioning it heavy losses. Rockland Kenya Ltd was registered on August 14, 1991.
It was granted Special Mining Lease No 19 of 1991 a day later.
The company, which Mr Muthama acquired from American geologist John Saul, was licensed to mine and export ruby (a precious gemstone) in Taita.
Mr Saul discovered the mineral in the 1970s but exploitation was dogged by infighting and controversy over ownership, until Mr Muthama appeared on the scene.
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