Kenya’s risks losing much needed revenue and community development due to illegal mining with Taita Taveta County alone having 158 companies operating without licenses, a review of mining records submitted to the Auditor-General’s office reveals.
The records showed that the county had 161 mining sites located in 4 sub-counties registered between 1997 and 2020, but only there was only evidence that three had mining licenses.The records did not show the quantities of minerals generated and revenues paid to the Taita County Executive on the mining and mineral related activities.Kenya’s laws state that applicants for mining licenses must submit site plans, mitigation and rehabilitation or mine-closure plans.
“Details of community development agreement where the mining operations were being carried out was not provided for audit,” Auditor-General Nancy Gathungu says in the 2023/24 audit report.
“Additionally, 29 mining companies in Voi Sub-County did not indicate the category of mineral being mined against law which requires keeping of records and details of minerals discovered, results of geochemical or geophysical analysis obtained, financial statements and books of accounts,” the OAG added.
The report comes at a time when National Assembly is debating a proposal that would pave way for the setting up of a corporation to regulate the exploitation of Kenya’s gold resources.
MP Bernard Shinali, who sponsored the Gold Processing Bill, says that proper regulation of the sector could significantly contribute to the economy. “Gold processing has boosted exports and revenue in other countries including Sudan. A comprehensive legal framework will enable the country to accumulate good reserves and encourage foreign exchange,” he said.