The Treasury has marked a Sh1.05 billion payout in mineral royalties to 32 counties in the new financial year starting July, as part of a revenue revenue-sharing scheme between the national government, devolved units and communities.
The Treasury said the amount represents the total sum of mineral royalties accrued in the financial year 2021/22 as submitted by the State Department for Mining.
“Additionally, to facilitate the transfer of a 10 percent share of mineral royalties due to communities, the State Department for Mining, as the implementing agency has developed draft regulations that have already gone through public participation. This will be disbursed to the communities once the regulations have been finalised,” it said.
The Treasury did not name the 32 counties to benefit from the Sh1.05billion royalties although records show that some of the mineral counties in Kenya are Makueni, Taita Taveta, Kwale, Homa Bay, West Pokot, Kericho, Kakamega, Elgeyo-Marakwet and Kericho among others.
The share of mineral royalties will be part of the Sh54.7 billion total additional allocations (conditional and unconditional) to counties during the coming financial year.
“Out of this, Sh19.06 billion will be financed from the national government’s share of revenue, and Sh35.66 billion from proceeds of loans and grants from development partners,” the Treasury said in its newly published Budget Policy Statement.
“These additional allocations to counties are as follows: 20 percent share of mineral royalties amounting to Sh1.055 billion (where) the National Treasury proposes to allocate Sh1.055 billion to 32 counties in FY 2024/25; being the total sum of mineral royalties accrued in the financial year 2021/22 as submitted by the State Department for Mining,” it stated.
Official data shows that by June 2022, at least Sh7.5 billion had been collected from mineral royalties. This means that the Treasury is holding Sh1.5 billion million for the counties and Sh750.39 million for the communities where minerals were exploited. The balance of Sh5.25 billion (70 percent) is the share of the national government.
Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the mineral right.
The revenues arising from mineral royalties would then be shared amongst the national government, beneficiary counties, and communities.
