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Iron ore mining firm bows to pressure, pays Sh10m to Kishushe community

The investor has so far paid Sh20 million out of the total Sh30 million owed to the community

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by SOLOMON MUINGI

Counties06 November 2023 - 18:00

In Summary


  • • The company has been in longer heads with locals over delayed payment of the money they had agreed on.
  • • It is part of the mining royalties that have accumulated for the last three years.
President William Ruto hands over a Sh10 million dummy cheque to Wundanyi MP Dan Mwashako on behalf of the Kishushe community on October 27. Residents have accused the mining firm for failing to pay the remaining royalties

Days after President William Ruto ordered an iron ore mining company, Samrudha Resources Ltd to pay the Kishushe community the remaining agreed money as Community Social Investment, the company has now paid Sh10 million.

The investor has paid Sh20 million out of the total Sh30 million owed to the community as part of the company's corporate social responsibility. 

The firm has been at loggerheads with residents over delayed payment of the money they had agreed on.

Residents have been pushing the government to halt mining at the iron ore mines in Kishushe until the mining company pays off all the outstanding royalties.

They have for a long time complained of not benefiting from iron ore mining despite the investor minting billions of shillings from the ore.

Past geological survey has revealed that the region has thousands of tonnes of iron ore deposits.

While visiting the county a week ago, President Ruto directed the iron ore mining company to immediately pay the remaining Sh20 million owed to the community.

It is part of the mining royalties that have accumulated for the last three years.

During the President's visit, the company presented a Sh10 million cheque, a move that agitated residents who expected to be paid all the dues.

Samrudha Resources in February agreed to pay the Sh30 million owed to the community in instalments of Sh10 million in two weeks’ time.

The total amount was to be paid by June.

"Let his friends tell the investor not to waste our time, he must pay the remaining balance immediately. The community must benefit from the mining activities," the head of state said during the official opening of the Voi gemstone value addition and marketing centre in Voi.

Confirming payment of the second instalment on Sunday, Wundanyi MP Dan Mwashako said Kishushe community must benefit from their resources.

"I'm glad to confirm that the investor transferred Sh10 million to Kishushe CSR account, bringing the account balance to Sh20 million. We now demand the balance of Sh10 million to be paid now and not later," he said.

Mwashako said Mining, Petroleum and Blue Economy CS Salim Mvurya will convene a meeting in Kishushe once all the royalties are paid to forge a way forward.

He said that communities in mineral rich areas will be required to give consent of any extraction before issuance of permits to investors to ensure maximum benefit.

"The condescending attitude of ignoring the community and dealing with a few people must come to an end," the legislator said.

"Any mining agreement that is entered into in the future must receive a nod from the community, lest it shall be null and void." 

He said the CSR funding was an indication that residents will start benefiting from the mining activities.


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