Sunday , April 14 2024

Kenya’s mineral potential largely unexploited

If completely exploited, Kenya’s mining sector could contribute up to 12% of the country’s GDP.

This is according to a study released this week by the Mineral Rights Board on how to draw mining investment.

Significant obstacles found in the report have caused local and foreign investors to steer clear of the market.

“The sector is historically funded by development partners and private investors with the government playing a minimal role, hence reduced budgetary allocation and funding,” it said.

The report comes a week after Mining Cabinet Secretary John Munyes gazetted artisanal mining committees in Migori and Siaya to formalise small-scale mining, curb illegal activities and increase contribution to the sector’s earnings.

According to the Economic Survey 2020, about Sh50.3 billion was gained from mining and quarrying activities in 2019.

However, the sector’s contribution to the country’s GDP has been reducing from 2.5 per cent in 2014 to 0.8 per cent in 2018.

The minerals board attributed this to lack of an environment to boost investor confidence.

“(This includes) lack of clarity around the set of laws, regulations and agreements that govern the economic benefits derived from mineral exploration,” the report said.

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