Minerals in Kenya: Joho Vows to Dismantle Mining Cartels

Mining Cabinet Secretary (CS) Ali Hassan Joho has vowed to dismantle cartels in the mining sector arguing that they are siphoning profits from the mineral in Kenya.

Joho said that policies should be put in place to protect small miners and investors in the industry.

“Some unscrupulous middlemen exploit our miners and siphon profits away. We want to develop policies that will profit both artisanal miners and investors in the sector equitably,” he said on 23 August 2024 while on a visit to the Nyanza region.

It’s estimated that Kenya is sitting on a $100 billion worth of minerals. This includes rare earth minerals like Coltan – used to make components for smartphones, laptops and other communication gadgets.

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Kenya also has deposits of uranium, and niobium and other precious minerals like gold, iron ore, nickel chromite, lead, zinc and copper.

The mining sector contributes to less than 1% of the country’s GDP. However, mining experts estimate that it has a potential capacity to contribute 4% to 10% of the national GDP.

Unfair share and under-exploitation

The former Mombasa Governor said that miners deserve to get a fair share of mineral benefits. He also reiterated on fast payment of mineral royalties, citing that currently, it takes seven years for miners to earn them.

He said cartels have been manipulating deals and robbing hardworking Kenyan miners.

“These shadowy figures have for many years reportedly manipulated deals [and] siphoning profits away from hardworking artisanal miners unaware of the hidden gold prize in the soil,’’ he stated.

In February 2024, Parliamentary Service Commissioner Johnstone Muthama said that the government has not been keen on the mining sector, adding that the minerals found in Kenya have been under-exploited.

“There is still a lot to be done if Kenya has to enjoy the full potential [of the mining sector],” he stated during the Third Edition of the Geo-East African Conference in Nairobi.