In a compelling address presented at the Kenya Chamber of Mines (KCM) annual conference, Dr. Kanyoro Patrick, the Chairman of KCM, outlined critical reforms he believes are necessary to transform the country’s mining industry within the next six months. Highlighting an array of challenges,Kanyoro asserted that a paradigm shift is essential to foster growth and rejuvenate investor confidence in Kenya’s mineral sector.
“We are currently shackled by a colonial relic of a framework that does not reflect the contemporary needs of our stakeholders,” Kinyoro stated, emphasizing the urgent need for a new mining law rather than mere amendments to the existing Mining Act of 2016. “To achieve different results in 2025 and beyond, we must create new legal and fiscal tools that are designed for miners, not against them,” he stressed.
Kanyoro pointed out that the Artisanal and Small-Scale Miners (ASMs) are vital to the livelihoods of nearly one million Kenyans and require formalization and professionalization to enhance their contributions to the economy. He lamented the high-handed approach of the Ministry of Mining’s State Department, which he claims monopolizes knowledge while sidelining essential input from industry stakeholders. “Collaboration and inclusivity are not just ideal; they are necessary for meaningful progress,” he insisted.
Another significant concern raised was the manipulation of the Open Cadastral System, which has fostered distrust among both local and foreign investors. Kinyoro called for an independent audit for the years 2020 to 2024 to restore transparency and confidence in the sector.
The Chairman also denounced the ongoing withholding of the airborne geological survey report, which he argued has created an unlevel playing field wherein only a privileged few access crucial information while the broader community remains disadvantaged. Kinyoro highlighted the detrimental impact of the Strategic Minerals Regulations of 2017, which has left miners with stockpiles of valuable minerals, cash that they should be able to reinvest into their operations.
He expressed particular concern regarding the proposed Mining Regulations of 2024, warning that they could stifle the industry at a crucial stage of its development. This issue, he noted, is currently subject to a court petition filed by KCM, with a hearing scheduled for January 16, 2025.
Kanyoro also critiqued the State Department’s push for State Equity Participation and Free Carried Interest, warning that unrealistic conditions risk alienating the very investors the government needs to foster a vibrant mining sector. He signaled KCM’s willingness to engage both executive and judicial branches to seek clarity on these issues.
Additionally, he addressed the demoralization of staff within the State Department of Mining, warning that this trend could hinder the ministry’s ability to deliver on its mandates and ultimately affect the political favorability of the government. “A motivated workforce is the lifeblood of our industry. If the employees are demoralized, the consequences for governance and public sentiment could be dire,” he cautioned.
Kanyoro concluded his address by emphasizing the need for a policy shift towards public-centered service delivery, asserting that such change does not necessitate new funding from the National Treasury. “A collaborative relationship between state and private sectors is not optional; it is imperative for our progress. The question remains, what must we do differently to achieve the results we desire?” he queried.
In a rallying cry, he urged stakeholders to take ownership of the future of Kenya’s mining industry. “Mining is our business, and our business is mining. Together, let us push for our rightful space and make change our currency,” Kanyoro declared.
With these ambitious goals set forth, the KCM looks ahead, hoping to spearhead transformative reforms that will elevate Kenya’s mining sector, ultimately creating more wealth and job opportunities for the nation.