Nairobi, Kenya 31st December 2023
The Kenya National Chamber of Mines early today morning in a letter addressed to His Excellency President and Commander in Chief of the Kenya Defense Forces Dr William Samoe Ruto outlined the potential of the Kenya Mines industry and expressed commitment by the industry to spur growth in the sector and increase the contribution to Kenya’s Gross Domestic Product GDP in line with the ruling regimes bottom Up economic transformation agenda. Here is a copy of the letter to his excellency the president by President of the Kenya Chamber of Mines Dr. Kanyoro Patrick
Attn: H.E Dr. William Ruto, C.G.H. President of the Republic of Kenya
Commander-in-Chief of Kenya Defense Forces
Your Excellency,
The Kenya Chamber of Mines (KCM) is the authoritative body in Kenya representing the interests of miners, exploration companies, mineral dealers, mineral processors, suppliers and professionals in Kenya. Established in the year 2000, KCM serves the artisanal and small scale miners as well as the large scale operators across Kenya. KCM currently is the voice of nearly one million stakeholders, engaged at various levels across Kenya’s mineral sector value chain.
KCM is deeply proud of the contribution our members and all actors across Kenya’s mineral value chain have made in developing Kenya’s nascent mining industry as it evolves into a robust ecosystem. At the least, KCM remains focused on working with the Kenya Kwanza administration to demystify mining as an economic activity. Over the last decade, the mining industry has unfortunately only managed a meagre average of 0.7% to Kenya’s GDP, despite its latent potential. Kenya boasts a strategic geological and geographic location as well as an unparalleled endowment with well trained, skilled and innovative manpower. As an industry, we are certain that we can drive our sector’s contribution to 10% to Kenya’s GDP; more than USD 10 billion well before year 2030. We are the sector that offers the promise for employment and wealth creation at the least cost to the exchequer, across Kenya. Mining as an economic activity has the capacity to create well over two (2) million jobs besides the obvious benefit to contributing towards Kenya’s industrialization.
1
Excellency, as the Chairperson and Coordinator of the Committee of the African Heads of State and Government on Climate Change (CAHOSCC) you are well aware of the ravages climate change is wrecking on our economy and communities. Climate change has aggressively and unrelentingly battered Kenya’s core sectors; agriculture and tourism. This has adversely impacted our export earning capacity, cost and standards of living, unabated inflationary tendencies and acute foreign currency shortages. The mining sector without a doubt offers brilliant counter measures to support rural livelihoods, Kenya’s current account and economic outlook. The mineral value chain’s climate dependence is minimal plus the commodity prices in green minerals such as; lithium, graphite, copper, cobalt, nickel, etc. continue to skyrocket, buoyed by soaring global demand for a decarbonized world; batteries to power homes, electric vehicles and tech devises as the world moves to a greener net zero future. Kenya can and should be part of this green mineral revolution; now not tomorrow.
Excellency Sir, despite Kenya’s well endowed geology and a hardworking populace, the sector has been dogged and held back by lack of information to the citizenry on the opportunities that exist now and in the future. Mining as an economic activity was very key cog in the colonial economy, yet independent Kenya has not enjoyed the obvious benefits that accrue from this God given opportunity. The much touted Mining Act 2016 that replaced the colonial relic referred to as the Mining Act 1940 gave a ray of hope that is yet to delivered the benefits to the citizenry. The decision by the Cabinet for a partial lifting of the moratorium in October 2023 was a sigh of relief to the industry constricted since 2019. We further appreciate your patriotic and candid action of decriminalizing artisanal mining and by dint of the action by the cabinet formalizing the artisanal miners’ subsector. Your commitment to the sector is evident and the recent appointment of the Chairperson of the Mineral Rights Board is a step in the right direction. We appreciate the various actions by the State Department for Mining (SDM) geared towards reinvigorating the sector through a consultative approach by engaging all stakeholders. The approach and strategy by the State Department for Mining is spot on and with sustained open and inclusive consultations, we shall all without doubt bear much fruit in the year 2024 and beyond. With all hands on deck, it will be feasible to have the mining sector contribute at least 10% to Kenya’s gross domestic product well before 2030.
The decision to lift the moratorium and have the Mineral Rights Board commence operations will go a long way in having the applications for the various mineral rights considered, within reasonable time. It is the efficient and timely issuance of prospecting and mining licenses and permits that will attract both direct domestic and foreign investors and transform the sector. Kenya as a nation deserves a seat at the table of countries that leverage on its natural resources for the current and future generations. We must work together on creating a balance between people, profits and the planet. The industry appreciates the decision by the Cabinet to have some minerals now enlisted as strategic. This is a noble initiative that must be supported by all. As industry, we seek further engagements to ensure that the transition is seamless and does not discourage investments, especially for green garnet and copper. Industry players fully support the Kenya Kwanza administration policy on value addition as our finite resources must yield maximum benefits for citizens while delivering a fair return to the investors. Value addition, progressive and mineral specific, will unlock real employment and wealth creation opportunities.
Your Excellency, the exchequer without doubt needs enhanced and purposeful domestic resource mobilization, with appropriate import substitution strategies. As sector players, we are aware that the government is losing enormous revenue due to smuggling and this needs honest engagements with all stakeholders. The Artisanal and
2
Small Scale Miners (ASMs) are in mining as a business for basic livelihood needs; food, school fees, clothing, shelter, medicare, etc. KCM leadership and membership fully support of the Bottom Up Transformation Agenda (BETA). Indeed, there could be no better sector to roll out the agenda; mining offers that platform. ASMs, especially those in gemstones and gold, will greatly benefit from joining cooperatives as they will have the opportunity to ride on economies of scale, both in production and marketing. Kenya has an opportunity to stand as a bastion of investment and economic progress by embracing the concept of madini jua kali. This will facilitate local communities mine and aggregate mineral ores that they can sell to mineral dealers and processors.
Your Excellency, we thank your government for extending respectable budgetary support to the State Department for Mining so as to facilitate the staff render service and reach out to the field. We yearn to see more geologists and mining engineers render technical support to the ASMs across villages in Kenya. This kind gesture will facilitate investments through exploration, mining, mineral dealership and processing by more Kenyans. And perhaps an independent authority or mineral council that will consist of captains of the mining industry and technocrats can leapfrog the sector to unprecedented levels, making it truly a growth sector. This country is blessed with resources and under your leadership, the nation has the opportunity to transform lives and livelihoods through responsible mining.
Finally, Your Excellency Sir, we count on your leadership to realize Kenya’s mineral potential and transform lives across Kenya: from Turkana to Taita Taveta, Kisumu to Kitui, Marsabit to Makueni, Kakamega to Kwale and across the breadth of this great nation. Our dream deferred for the last sixty years; we believe, can be a reality with servant leadership. KCM and stakeholders in the mining sector across Kenya remain open to engaging at all times. As you lead Kenya in 2024 and beyond, “plenty be founded within our boarders” as well take counsel from Deuteronomy 8: 7-10 “For the
you.”
God bless you. God bless Kenya. Yours sincerely,
Dr. Kanyoro Patrick
Chairman – Kenya Chamber of Mines
You must be logged in to post a comment.