Senators win turf war with MPs after Uhuru returns Mining Bill

The Senate has won a hard fought battle after President Uhuru Kenyatta allowed it to review the Mining Bill that the National Assembly passed late last year, sparking a controversy.

Senate Majority Leader Kindiki Kithure said on Friday State House had returned the Mining Bill ahead of the Christmas break.

“The Bill is now in our custody and will be among those we give priority when Parliament resumes on February 10,” he told the Business Daily on phone.

The push for a new mining law sparked turf wars between the two chambers of Parliament with the National Assembly threatening to scrap of the Senate if it insisted on reviewing the Bill.

By returning the controversial Bill, President Kenyatta appears to have heeded the advice by Commission on Implementation of Constitution which had warned that the new Bill would contravene the supreme law if passed without the input of the Senate.

The proposed law is expected to replace the much discredited Mining Act (1940) which came into force long before Kenya discovered most of its current mineral wealth.

Among others, the Bill seeks to “modernise” the mining industry and make it attractive for investments that are expected to raise its contribution to at least 10 per cent of gross domestic product.

“The royalties payable shall be distributed as follows — 70 per cent to the national government, 20 per cent to the county government and 10 per cent to the community where the mining operations occur,” reads part of the Bill.

Senate had previously expressed reservations about clauses on the sharing of mineral wealth among the counties.

READ: Windfall for local communities in new Mining Bill

A Senate Bill proposes that local communities receive 12.4 per cent of the fees and royalties, the county government (19.6 per cent), national government (48 per cent) and 20 per cent be put into the sovereign wealth fund—which is not captured in Mining Bill.

The Senate is expected to make its adjustments on the contentious clauses when it resumes its sittings in February before the Bill is returned to the National Assembly and subsequently to the President for assent in order to become law.

The Bill could also be forwarded to the Mediation Committee made up of equal number of representatives from both Houses in case the National Assembly refuses to approve the amendments proposed by the Senate.

In that case, resolutions of the committee would then be tabled before both Houses for adoption before the amended Bill is forwarded to the President for assent. If either of the Houses fails to endorse the Bill, it will be thrown out or discarded.

Mining secretary Najib Balala expressed optimism that the Senate would conclude deliberations on the Bill by April to allow its publishing in good time.

“We hope to beat the August 27, 2015, deadline of publishing the Mining Bill, which will have a huge impact on the mining sector,” he said.

The mining sector is a relatively small contributor to national output although its revenues are expected to grow as new mines come on board.