NAIROBI, Kenya – Kenya’s Minister of Mining and Marine Economy, Hassan Ali Joho, has issued a formal decision to suspend the mining operations of a major mining company in the country, due to allegations of non-compliance with the laws and regulations applicable in the Kenyan mining sector.
Strict regulatory measures to enhance compliance and revenue
This decision represents one of the strongest regulatory measures taken by the government against a major mining company in recent years. It underscores the Kenyan authorities’ commitment to strengthening oversight and compliance, improving revenue collection, and enhancing the contribution of the mining and quarrying sector to the national economy. The Ministry of Mining confirmed in an official statement that the suspension will remain in effect until the company fully complies with the Mining Act, its implementing regulations, and all other laws governing this vital sector in the country.
Reasons for suspension and critical violations
The ministry explained that this decision was the culmination of years of continuous communication and consultations between the State Mining Administration and the company regarding its legal obligations, specifically under the Mining Act (Chapter 306), the Mining (Licensing and Permitting) Regulations of 2017, the Mining (Revenue Collection and Management) Regulations of 2024, and other relevant legal frameworks. Despite these meetings, critical compliance issues remained unresolved. The most prominent concerns and violations cited by the ministry included the lack of a clear strategy for mineral enrichment and adding value to the local economy, and delays in settling outstanding royalty payments.
The ministry also cited inadequate export reporting and settlement procedures, weak adherence to local community development agreements, deficiencies in employment and skills transfer plans for Kenyan citizens, insufficient reliance on locally sourced goods and services, and a lack of compliance with environmental standards and regulations. The ministry emphasized that the company must submit comprehensive documentation and evidence demonstrating its full compliance with all legal obligations and address all outstanding obstacles before being permitted to resume its mining activities.
The government’s position and emphasis on resource sustainability
For his part, Minister Hassan Ali Juho affirmed that the Kenyan government will continue to rigorously enforce compliance across the mining sector to ensure that Kenyan citizens benefit from their country’s natural resources. He noted that the ministry remains committed to ensuring that mineral resources are exploited responsibly, sustainably, and in a way that maximizes economic value, while preserving the environment and protecting the interests of host communities.
It is worth noting that the Mining Act of 2016 is the main legislation regulating the exploration, extraction and management of mineral resources in Kenya. It replaced old colonial laws with a modern framework that promotes transparency, provides for the fair distribution of revenues between the central government, county governments and host communities, as well as protecting the environment and obliging companies to adopt sustainable practices.
