A mining license in Kenya is for those who are currently mining without legal rights and the new entrants.

Mining Rights in Kenya

A mining License in Kenya is by Kenya’s Ministry of Mining and Petroleum. There are procedures one has to follow to obtain the license. Getting a mining license ensures you carry out legal business, pay royalties and taxes and adhere to the best possible practices.

Operating without a Mining license in Kenya

Many companies and individuals who would love to work legally are operating without mining licences in Kenya. Since the enactment of the new law. The government has had challenges in issuing licenses. Even if it is illegal to mine without a mining license in Kenya, investors have no option but to operate.

Cost of Mining license

The cost of a mining license in Kenya is dependent on the type of mining license or permit type.   Exporters need a mineral export permit in Kenya and will need to be mineral rights holders.

What Natural Resources does Kenya have?

Kenya has various minerals. Minerals discovered in Kenya include;

Construction materials

comprising gypsum, granite, and dimension stones of different chemical compositions, limestone, and sand.

Precious metals

The category includes gold found in various parts of the country. Most of the Gold is mined by unregulated artisanal miners mostly in the western side of the country. Gold has been spotted in some of the protected areas. However, the commodity cannot be mined.

Base minerals

Minerals in this category include manganese, Titanium, nickel,  lead, chromium, zinc, copper, and iron ore. The main mineral mined in the country is Titanium in Kwale county coastal Kenya.

Precious and semi-precious stones

The country is also a known source of precious and semi-precious gemstones. There is valuable green garnet, tsavorite and sometimes Tanzanite.

Other famous minerals are fluorspar, and diatomite.

coal mining in Kenya

There are also coal deposits confirmed in Kitui County.  There has been the minimal exploration of the coastal region. However, this has not produced substantive results. There There is no coal mining in Kenya at the moment.

Mining Gas

There is the presence of gaseous minerals that include coal bed methane that has not been explored. In addition, the country has a long history of mining of  CO_2.

Exploration work that needs to be in the country and the database availed to investors to reduce the risk associated with the exploration of minerals by private sector players.

Copper ore in Kenya

The Legal Environment for minerals in Kenya

After years of old mining law,  Kenya finally welcomed the new Mining Act of 2016. The act was to ensure that;

• Kenyans would get mining licenses on time.
• The government would increase earnings from mining and that communities are included and benefit from mining in the country.
• Protection of the environment.
• Cost of mining licenses, permits and other payments.
• Community benefit-sharing was incorporated.

Implementation of the Mining Act

The slow implementation of the law has left the industry unregulated. The main casualty to slow has been the environment, artisanal miners who cannot sell their products at reasonable market value and the government that is not getting enough revenue as anticipated. Several investors of high-value minerals have also been affected. We hope that the sector will streamline operations in 2021.

Other Laws that Affect Mining

Other laws that govern the industry are National Environment Management and, Coordination Act (EMCA)  for every mine has to carry out an EIA before commencing. Other national laws in your mining operations that affect your business will be dependent on where the location of your mine. For more on Environment impact assessment and licensing call us at +254722399018 or info@zelenaafrica.com

Types of Mining licenses in Kenya

Several types of licenses and permits are issued depending on the need of the client. It complies with laws and subsequent regulations.

• Minerals Dealers Licenses
• Export Permits
• Mining Licenses
• Mining Permits
• Prospecting permits
• prospecting license

Challenges that you may face when trying to obtain a license or permit

No Defined Timeline

The government in an effort to implement the mining act 2016 has automated the licensing procedure. However, licensing is run by a government ministry that may not benefit from all the modern management practices that are found in the corporate world.  There is no promise to the customer on when you will get the license. You have to keep calling individuals for there is no official follow-up line. The organisation may not have the scorecards and escalation criteria. There are committees that sit to comb your application thus making it difficult to get to the next level.

Heavy Documentation

One of the notable difficulties is the amount of documentation you have to put through to get the license. Most companies do not have the internal capacity to come up with this documentation on their own. some of these documents will come from other government agencies eg. CR12 and sometimes take a long to obtain. There is an effort to reduce the amount of documentation that the government gets.

Moratoriums and Stoppage of Process

The Ministry of Mining in Kenya is new and does not have a known delivery timeline. There have been several stoppages and moratoriums hindering the insurance of licenses dating back from 2010 to the present. According to Global review monitor, the government cancelled many prospecting and mining licenses (65) terming them as illegal hence leading to losses.

Besides, the enactment of the new law led to a license break. A few licenses were issued later, although with difficulties. There have been very few meetings. The delay is due to a range of issues ranging from leadership, budget, and internal changes.

In 2019 there was a blanket cancellation of over 150 license applications by the board for not meeting the threshold. Owners might have to reapply for the same again. Besides, the Ministry issued a Moratorium stopping issuance of any new licenses until a later date. As a result, the mining cadastre was closed for new applications. Players in the industry are keenly observing to see when the insurance of mining permits and licenses will resume.

Then there was Corona where most of the workers are working from home. It takes too long to obtain a license. You, however, can apply for a dealer’s license if you want to trade in minerals.  For export, you will need to pay a royalty fee to the government when processing export licenses.

It is the hope of players in the industry that the government will have the structures in place and this time licensing will run smoothly.

Old and Expired Licenses

The law is clear on how to renew mining licenses in Kenya and what to do when they expire. Those that were in force before the new law was supposed to comply within 18 months.  Most of these are in place on the Kenya Mining Cadastre Map. No new applications in these areas covered by these licenses are possible. There has been a plan in the pipeline to remove the old and expired licenses. Hundreds of investors are waiting. It has, however, been a plan for far too long.

kenya gemstones

Role of County Government in Mining

Investors have complained of multiple charges from both the National government and county government. The constitution of Kenya, minerals are held by the National Government on behalf of the people. Licences are from the Ministry of Mining. The county government, however, have the following roles.

• Issue business permits for mining sites
• Cess to vehicles transporting minerals.
• The county government is responsible for community land.
• County governments are supposed to regulate and license artisanal miners although most of those contacted are not aware.

Community Licenses

In most places, communities have come together as groups to mine.

The law is clear on how artisanal miners should obtain their licenses at the county level. To be legal and competitive in the market. However, five years down the line, no infrastructure in place for small-scale miners hence giving undue advantage to large-scale miners.

Environment Impact Assessment

To apply for a mining license, you will need an expert to prepare an Environment Impact Assessment Report for you.  it will then be submitted to the authorities for approval.

Frequently Asked Questions

Does Kenya have diamonds?

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