The State Department for Mining and the Office of the Attorney General are fast-tracking the finalisation of the Mining (Mineral Royalty Sharing) Regulations, paving the way for the release of Sh2.9 billion in mineral royalties.
The money meant for mining communities in some counties has been held in the National Treasury’s Consolidated Fund since 2016 according to Principal Secretary (PS) for Mining Harry Kimtai.
PS Kimtai said the government is committed to streamlining regulations and laws governing the sector, explaining that revenue-sharing provisions are clearly outlined in the Mining Act, 2016.
He noted that the ministry will soon disburse the royalties following the passage and presidential assent of the Division of Revenue Bill.
Kimtai was speaking in Mombasa during a joint session with the National Assembly Environment, Forestry and Mining Committee, the Senate Lands, Environment and Natural Resources Committee, and representatives from mining communities organised by the Kenya Human Rights Commission
Mining communities were assured that the State Department is accelerating the finalisation of the Mineral Royalty Sharing Regulations with the Office of the Attorney General to enable them to receive their entitled share. Once finalised, the regulations will undergo nationwide public participation before they are gazetted.
“Once that is done, then the 10 per cent that belongs to the communities shall be released with immediate effect because the Treasury is ready. All that money was collected previously,” stated the PS.
“It’s not a question of saying where the money is. The money was collected and deposited with a consolidated account; it is with the treasury, so they are aware, we have the list for all the community payments that are due to them,” he added.
Kwale County will get the lion’s share of the royalties, with Sh1.5 billion, while the community will get Sh880 million from revenue that was collected from Base Titanium Company.
The PS lauded the support from the joint committee, as they have promised to support the State Department in amending laws to facilitate seamless mining operations.
Local Mining Communities were urged to cooperate with investors to exploit resources, as the benefits go to the communities. They were assured that they would not be displaced from their land without proper compensation.
To protect communities from exploitation, the State Department of Mining has agreed with mining companies to form joint national and county steering committees to ensure the communities are not disenfranchised and they get their fair share of land compensation.
To safeguard communities against pollution and ensure the rehabilitation and restoration of mining land, the National Environment Management Authority requires mining companies to deposit an Environmental Protection Bond.
The PS underscored the need for continuous consultation with the community and capacity building of Community Development Agreement Committees. The PS also promised to deepen engagement with the Kenya Human Rights Commission, which is supporting mining communities.
“We want coexistence. For a nation to develop, it must develop or exploit its resources that are available within the country so that it can use them for its own economic advancement. We need the investors, we need the public, and we need the communities,” he stated.
National Assembly Environment, Forestry and Mining Chairperson Charles Kamuren said some rogue mining companies have affected the lives of local communities, as they have not complied with the relevant environmental and mining laws.
The committee vowed to protect the interests of the communities, calling for the closure of illegal mining operations being conducted by foreign nationals.
“The government should monitor the mining activities for the companies not to destroy the environment, the lives of the people, and the water sources and roads leading to the sites should be tarmacked,” said Kamuren, calling for compensation of affected communities and involvement of elected leaders.
The MP put on notice a cement firm in Rabai Sub-County that was closed last year by the Cabinet Secretary for Mining, Blue Economy and Maritime but has resumed operations without complying with Environmental and Social Impact Assessment requirements.
By Sadik Hassan
