Nairobi, Kenya (Prime Africa News) –
Kenya’s mining sector is once again under the spotlight, with the Mines Rights Board (MRB) facing sharp criticism over what industry players describe as systemic abuse and regulatory capture.
Tasked under the Mining Act, 2016 with oversight of licensing, cadastre management, and adjudication of disputes, the MRB is accused of failing in its statutory mandate. Instead of providing impartial regulation, officials within the Ministry of Mining and the Board allegedly exploit regulatory gaps to withhold renewals and reallocate licenses to connected parties.
At the heart of the crisis is the compulsory three-year prospecting license tenure, renewable twice, provided for under the Mining Act. While the framework was intended to ensure accountability and optimal land use, critics argue it has become a tool for manipulation. Prospectors are required to submit detailed geological data and exploration results to the Ministry, but in practice, this data is allegedly hoarded and later traded to new applicants once the original licenses are denied renewal.
Globally, mining jurisdictions such as Australia and Canada recognize the high capital, risk, and technical expertise needed in mineral exploration by granting tenure ranging from seven to ten years, with a clear and predictable pathway to mining licenses. Kenya, however, has become an outlier: investors spend millions on exploration only to return “cap in hand” every three years, uncertain of renewal despite meeting obligations.
According to documents seen by Prime Africa News, more than 90% of mining licenses under the ongoing re-application process have been withheld from their original holders. Many have allegedly been reassigned to insiders under claims of “fraudulent” activity — raising fears of institutionalized expropriation of private sector effort.
“Renewal should be a statutory right where obligations have been met, not a roulette wheel controlled by bureaucrats with neither expertise nor accountability,” one industry executive told Prime Africa News on condition of anonymity.
The consequences are far-reaching. Investor confidence has plummeted, with both local and foreign firms warning that Kenya’s resource potential is being undermined by opaque governance. MRB members, despite being salaried public servants, stand accused of using insider knowledge for private gain. Calls for transparency have been met with silence, further fueling suspicion.
This is not the first time Kenya has made promises of reform. In October 2011, then-President Mwai Kibaki assured Australian investors of a secure and transparent environment for mineral exploration. Those assurances brought fresh capital into the sector. In 2025, the current Cabinet Secretary for Mining Hassan Joho again pledged reforms to restore investor confidence, promising alignment with global best practices. Yet, little has changed.
Recently President William Ruto’s ambitious plan to reform the mining sector has suffered a major setback after the High court declared the 2024 Mining Regulations illegal and unenforceable for lack of meaningful public participation.
The regulations, which sought to overhaul licensing, royalties, gemstones trade and mineral services, were quashed by Justice Bahati Mwamunye who ruled that the Ministry of Mining, Blue Economy and Maritime Affairs had failed to meet the threshold of public involvement as required under Articles 10 and 118 of the Constitution.
Among the most contentious proposals was a nine-fold increase in licensing fees for large scale prospectors and miners, from Kse.50,000 to Kes.500,000 for some minerals to discourage speculators and free up space for potential (deep Pocket) Investors.
The government also introduced new royalties ranging from 1% of gross sales for cut gemstones to 8% for rare earth minerals.
Coal was to be charged at 7%, rough gemstones at 6%, while metallic ores such as copper, Zink aluminum and manganese would attract 5%. Cement and Salt were set at 1.6% with clinker at 2%.
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KEY FIGURES FROM THE CONTESTED MINING REGULATIONS |
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The reforms were challenged by Kenya Chambers of Mines in court (KCM), which filed a petition on 9th October 2024.
Speaking exclusively to Prime Africa News, the KCM Mines Chair Dr. Patrick Kanyoro highlighted on critical issues affecting the mining industry, among them was the unreasonable proposed mining regulations without involving the public to submit their comments.
“ As the Kenya Chambers of Mines we strictly recommend that everyone upholds the law , that any directive that is not in the provision of the mining act or any regulations under the act should be ignored because we cannot run a ministry or a department based on how an individual thinks or feels and that’s why we have the law … let us work on fidelity to the law, that’s what will make the investors trust us both locally and internationally” Kanyoro Said
The MRB continues to wield unfettered power, the three-year licensing cycle remains intact, and the sector is dogged by allegations of systemic plunder of prospectors’ work.
With Kenya’s mineral wealth estimated to be worth trillions of shillings, stakeholders argue that only firm enforcement of the Mining Act, 2016, accompanied by structural reforms, will restore credibility. Until then, the message to global investors is one of uncertainty, opacity, and mistrust.
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