This archive report was first published on 11 July 2019.
July 11, 2019 - Kenya's Mining Ministry is set to draft a Sovereign Wealth Bill to guide the utilization of royalties earned from mining activities. The bill aims to boost the sector's output and provide safety and security for communities where mining takes place.
Speaking at the Kenya Broadcasting Corporation offices, Mining Principal Secretary John Morangi emphasized the importance of the bill in ensuring fair utilization of royalties among beneficiaries. He noted that the current Mining Act 2016 stipulates that holders of a mineral right shall pay royalties to the state, determined by the gross value of total sales.
The act allocates 70% of royalties to the national government, 20% to the county government, and 10% to the community where mining operations take place. However, the bill aims to provide a clear framework for the utilization of these royalties, easing tension between corporations and communities.
Kenya has 77 minerals, including rubies, emeralds, and tsavorite, although in small quantities. The bill is also expected to address the decline in gold exports, which decreased to 471.98g in 2018 from 502.57g in 2017.
PS Morangi called for a review of the tax regime on imports and exports of mineral products to make it favorable for local miners and traders. He also announced plans to set up a gold refinery plant in Kakamega to support gold mining in the western region.
