The Ministry of Mining, Blue Economy and Maritime Affairs has unveiled the draft Minerals, Mining and Beneficiation Policy 2026, a comprehensive framework aimed at transforming Kenya’s mining sector from its current contribution of about one per cent of Gross Domestic Product (GDP) to a projected 10 per cent by 2030.
The policy marks a major milestone in the country’s efforts to unlock the full potential of its mineral resources and reposition mining as a key driver of industrialisation, employment creation and export earnings.
Speaking during a stakeholders’ meeting held at Magharibi Hall in Kakamega, Mines Inspector Philip Kirui said the policy builds on the foundation laid by the Mining Act 2016 but introduces critical reforms to address emerging challenges and opportunities in the sector.
“The government recognizes that mining has the capacity to contribute significantly to economic development, and this policy provides the roadmap to achieve that vision,” said Kirui.
The meeting brought together miners, investors, community representatives and government officials from the State Department for Mining to discuss the draft policy and provide input before its final adoption.
The proposed policy, titled Transforming Livelihoods through Sustainable Development and Utilization of Mineral Resources, outlines eight thematic areas that include policy and legal framework, mineral resource endowment, mining and mineral management, mineral value addition and beneficiation, artisanal and small-scale mining, mineral promotion and marketing, sector enablers and sustainability, and emerging cross-cutting issues.
A key feature of the policy is the formalisation and integration of artisanal and small-scale mining into the mainstream economy, with structured support mechanisms aimed at improving safety, productivity and incomes for small-scale miners.
Mines Inspector Jeff Muchiri said the policy places strong emphasis on in-country value addition and mineral processing, noting that Kenya has for long exported raw minerals with minimal benefits.
“Currently, Kenya exports the bulk of its minerals in raw form, fetching low incomes on the international market. The government is committed to reversing this trend by promoting local processing and beneficiation to create jobs and retain value within the country,” said Muchiri.
He added that Kenya cannot continue exporting raw minerals while other countries benefit from value addition, noting that the new framework seeks to change this imbalance.
A major highlight of the policy is the gazettement of 14 strategic minerals considered essential for key industrial sectors, including renewable energy, electric vehicle manufacturing and advanced technology industries.
The government says prioritising these minerals will position Kenya as a regional hub for mineral exploration, processing and value addition.
The forum also revealed that the government has completed a nationwide airborne geophysical survey covering the entire terrestrial landmass of Kenya. The survey identified 970 geophysical anomalies, which will undergo ground-truthing to confirm mineral potential and provide reliable geological data for investors.
Brian Bundi, the Ground Chief Mining Officer for Busia County, urged stakeholders to provide constructive feedback, noting that public participation would shape the final policy.
“This is your opportunity to be heard. The government has developed this policy in a consultative manner, and we want to ensure it reflects the aspirations of all stakeholders,” said Bundi.
Participants raised concerns about implementation, particularly access to geological data, fair distribution of mining benefits and royalties, and the participation of local communities in mining revenues.
Investor Henry Shikanga shared his experience of losing over Sh1 million in mining ventures due to lack of reliable geological information, calling for improved access to data.
“This geotechnical survey and information are critical. We need the government to make this information available to small investors so that we can make informed decisions,” he said.
Another participant, Daniel Bebe, questioned how the policy would address benefit sharing and royalties, noting that many mining communities have not seen tangible returns from mineral extraction.
“We are talking of royalties, but where are these royalties? How will these policies be implemented so that communities benefit?” he posed.
In response, the draft policy proposes the establishment of a Mineral Sovereign Fund to promote intergenerational equity, alongside a Mineral Development Levy Fund to finance regulatory operations and sector growth.
It also introduces Community Development Agreements and Community Royalty Sharing Committees to ensure equitable distribution of mining benefits among national government, county governments and host communities.
On artisanal mining, the policy proposes the creation of county-level artisanal mining committees across all 47 counties, a national database of miners, and promotion of cooperatives to strengthen organisation and access to markets.
It further proposes establishment of value addition centres in gemstone-rich areas, gold refineries in gold-producing regions, and processing facilities to improve earnings for small-scale miners.
Artisanal miner Kennedy Masika welcomed the policy but urged the government to ensure access to affordable technology, training and financing to support small miners.
“We welcome the idea of cooperatives and value addition centres, but without access to technology and financing, the policy will remain on paper,” he said.
The policy also addresses cross-cutting issues such as gender mainstreaming, child labour, disability inclusion, climate change and environmental sustainability.
It acknowledges the participation of women and children in artisanal mining and commits to protecting vulnerable groups while promoting safe and sustainable mining practices.
On climate change, the policy highlights the environmental impact of mining activities, including greenhouse gas emissions from extraction and transport, and proposes adoption of green energy solutions such as geothermal and solar power in mining operations.
The government is also setting up Kenya’s first gold refinery at Iguhu in Ikolomani Constituency, Kakamega County, at a cost of Sh5.8 billion under a public-private partnership. The refinery is expected to eliminate middlemen, enable direct access to global markets and create local employment opportunities.
Officials say the refinery will mark a major step in Kenya’s mineral value addition agenda and strengthen the country’s competitiveness in the global mining industry.
The draft policy is expected to guide the transformation of the mining sector into a major contributor to national development, aligned with Kenya’s broader vision of becoming a newly industrialising, globally competitive and prosperous upper-middle-income economy.
By Godfrey Wang’anya & Paul Nyokech
