NAIROBI,Kenya-Australia has entered the intensifying global race for Kenya’s estimated $62 billion (Sh18 trillion) rare minerals deposits in Mrima Hills, Kwale County, a move that further elevates the country’s profile as a potential critical minerals powerhouse even as investors grow increasingly frustrated by licensing delays at home.
Canberra formally expressed interest in the strategic deposits during President William Ruto’s recent visit to Washington, with the message conveyed through Prime Cabinet Secretary and Cabinet Secretary for Foreign Affairs Musalia Mudavadi. On December 3, Mudavadi met Australia’s Ambassador to the United States, Kevin Rudd — a former Australian prime minister and foreign minister — to discuss potential collaboration in Kenya’s mining sector.
Two Australian firms, RareX and Iluka Resources, have since formed a consortium to bid for mining rights at Mrima Hill, a 157-hectare forest believed to host vast deposits of rare earth elements, including niobium, phosphate and manganese. A 2013 study by Cortec Mining Kenya estimated the value of minerals beneath Mrima Hills at more than $62 billion.
Australia’s interest adds to established overtures by the United States and China, positioning Kenya at the centre of a growing geopolitical contest over critical minerals essential for clean energy technologies, defence systems and advanced manufacturing.
Government courts investors, but frustrations mount
Following the Washington meeting, Mudavadi said Kenya was actively seeking investors with the technical expertise and financial muscle to responsibly exploit its rare earth resources.
“In a meeting with Amb Rudd, I underscored Kenya’s commitment to partnering with reputable mining firms that can support and train our teams to extract these resources safely, sustainably and in a way that uplifts local communities, especially in Mrima Hills, Kwale County,” Mudavadi said.
He stressed that Kenya would only work with environmentally conscious companies that adhere to global best practices and guarantee full land restoration once mining activities conclude.
Ambassador Rudd vouched for the Australian firms, citing their strong global reputations, strict regulatory oversight at home, more than a century of mining experience and a track record of community empowerment.
However, even as foreign interest surges, mining investors already operating or seeking entry into Kenya are raising concerns over prolonged delays and uncertainty in the issuance and renewal of licenses by the Mineral Rights Board (MRB).
Several industry players say bureaucratic bottlenecks, opaque decision-making and slow processing of applications undercut Kenya’s stated ambition to attract large-scale, long-term mining investment.
Kenya’s Mining Reforms Underway as Investors Remain Wary on Mines Rights
“Kenya has world-class mineral potential, but investors are struggling with predictability,” said one Nairobi-based mining executive who requested anonymity. “License renewals and approvals can take years, tying up capital and making it difficult to plan or raise financing.”
Legal framework under scrutiny
Kenya’s mining sector is governed by the Mining Act, 2016, which vests mineral rights in the state and mandates the Mineral Rights Board to advise the Cabinet Secretary on licensing, renewals, revocations and transfers. The law also requires strict compliance with environmental safeguards, community consultation and benefit-sharing arrangements.
While the Act was hailed as a reform milestone, investors argue that its implementation has been uneven, with some applications stalled despite meeting legal and technical requirements. Analysts warn that unless administrative efficiency improves, Kenya risks losing out to more agile jurisdictions competing for the same pool of global capital.
Mudavadi himself has previously acknowledged the need for reforms. In October, during talks in Nairobi with Australia’s Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite, he said Kenya was keen to draw lessons from Australia’s world-renowned mining sector to modernise its regulatory and operational frameworks.
Global powers circle Mrima Hills
Australia’s push comes as the United States steps up efforts to secure critical minerals across Africa, partly to counter China’s dominance in global supply chains. Former US chargé d’affaires Marc Dillard visited Mrima Hills in June, meeting Kwale County leaders and local elders to “explore opportunities for collaboration.”
Kenya’s Mrima Hill at the Heart of Global Race for Critical Minerals Amid Investor Frustration
China, meanwhile, has long been a key player in Kenya’s mining landscape. It has been a major buyer of titanium from Base Titanium’s Kwale Mineral Sands Project, though sales declined following operational changes and shifting focus to Mrima Hills. In 2016, Kenya contracted China’s Geological Exploration Technology Institute to conduct a Sh7 billion airborne mineral mapping project, financed by China’s Exim Bank, to update outdated geological data.
Community and environmental concerns persist
Despite the promise of massive revenues, local communities remain wary. Mrima Hills is an ecologically fragile and culturally sacred site, particularly for the Digo community, who fear land loss, cultural disruption and marginalisation from benefits.
Public policy analyst Bilal Mwarandu warns that mismanagement could deepen inequality and fuel social unrest.
“Any form of exploitation must be sustainable, transparent and lawfully guided by Kenya’s Constitution, particularly Articles 40, 42, 69 and 71, and aligned with global best practices in resource governance,” Mwarandu said.
He called for a thorough, inclusive and independently audited Environmental and Social Impact Assessment to safeguard biodiversity, human health and cultural heritage.
These concerns echo findings in the Africa Governance Report 2025 by the African Peer Review Mechanism (APRM), which named Kenya among countries struggling to ensure citizens receive fair benefits from mineral wealth. The report highlighted weak community engagement and inequitable resource distribution in Kenya, the DRC, Zambia and Tanzania, warning that such failures could trigger conflict.
Balancing opportunity and reform
As Australia, the US and China jostle for access to Mrima Hills, Kenya faces a critical test: whether it can reform licensing processes, strengthen the Mineral Rights Board’s efficiency and enforce its mining laws while protecting communities and ecosystems.
For investors, the minerals are enticing. For Kenya, the challenge is ensuring that regulatory clarity, constitutional safeguards and fair benefit-sharing turn geological wealth into lasting national prosperity — rather than another missed opportunity buried beneath red tape and discontent.
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