Nairobi, Kenya — Kenya is looking to draw lessons from Australia’s world-renowned mining sector as it eyes new partnerships to unlock the potential of its underdeveloped mineral industry and boost economic diversification.
Prime Cabinet Secretary and Foreign Affairs Minister Musalia Mudavadi on Monday said Kenya plans to deepen cooperation with Australia in the extractives sector as part of a broader agenda to attract investment, promote technology transfer, and enhance sustainable resource management.
Speaking after hosting Australia’s Assistant Minister for Foreign Affairs and Trade Matt Thistlethwaite in Nairobi, Mudavadi said the two nations were exploring practical areas of collaboration that could transform Kenya’s mining landscape while creating jobs and expanding exports.
“We affirmed our commitment to continue the partnership in mining where Kenya can significantly benefit from a robust mining sector in Australia,” Mudavadi stated.
Australia is a global leader in mining governance, technology, and sustainability — expertise Kenya hopes to tap into as it reforms its extractive industries.
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Australia already has a strong footprint in Kenya’s mining sector through companies such as Base Titanium, which operates the Kwale Mineral Sands Project, one of Kenya’s largest mining operations.
Other Australian firms, including RareX and Iluka Resources, are prospecting for rare earth elements at the Mrima Hill Project in Kwale, while Avira Resources has discovered copper and gold deposits in Meru County.
The announcement of the potential partnership comes shortly after the release of the Africa Governance Report 2025, which flagged Kenya — alongside the Democratic Republic of Congo (DRC), Zambia, and Tanzania — for facing growing challenges in equitably sharing mining revenues and engaging local communities affected by extractive projects.
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The African Peer Review Mechanism (APRM) noted that inequitable benefit-sharing, weak governance, and limited transparency continue to plague the sector — issues that, if unaddressed, could trigger social unrest.
“Many African countries face challenges in ensuring that African taxpayers receive fair benefits from mining activities,” the APRM report said. “This is particularly evident in countries like the DRC, Kenya, Zambia, and Tanzania, where mining operations often fail to adequately compensate or engage local communities.”
According to the APRM, between 10 and 60 per cent of potential mining revenues are lost across Africa due to weak tax systems, governance inefficiencies, and lack of transparency. The report urged governments to review fiscal regimes to ensure both states and citizens benefit fairly from the exploitation of mineral resources.
The findings echo concerns raised by Kenya’s Auditor General Nancy Gathungu in her 2023–2024 report, which cited the absence of a clear revenue-sharing framework within the State Department for Mining.
The report showed that the department collected KSh3.3 billion in property income, including KSh2.1 billion in royalties, but failed to provide evidence showing how these funds were distributed among county governments and local communities — a breach of Section 183(5) of the Mining Act, 2016.
The Act stipulates that royalties from mining activities should be shared between the national government (70%), county governments (20%), and local communities (10%).
Additionally, the Auditor General raised questions about the unprocedural export of 65 kilograms of gold samples by a licensed company that remitted no royalties. Officials claimed the samples were sent abroad for analysis, but no supporting documentation or test results were filed as required under the Mining (Dealings in Minerals) Regulations, 2017.
Kenya possesses significant deposits of titanium, gold, coal, niobium, and manganese, with growing investor interest in rare earth elements and fluorspar. However, many communities in mineral-rich regions such as Kwale, Turkana, and Taita Taveta say they remain excluded from mining benefits and continue to bear the brunt of environmental degradation and opaque benefit-sharing systems.
Through partnerships with countries like Australia, Kenya hopes to modernize its mining governance framework, strengthen transparency, and ensure that the exploitation of its mineral wealth contributes meaningfully to national development and local livelihoods.
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