logo
ADVERTISEMENT

State to pay Sh2.9bn mining royalties to counties, says CS Mvurya

Kwale will get Sh1.1 billion, Kilifi Sh350 million and Kajiado Sh660 million.

image
by SHABAN OMAR

Counties08 May 2024 - 05:01
ADVERTISEMENT

In Summary


  • Some counties, mining-affected communities and leaders have accused the government of intentionally withholding the funds.
  • Mvurya said the funds delayed because of the financial crisis.
Lands and Environment County Executive Saum Mahaja receives a committee certificate from Mining CS Salim Mvurya at the Kenya School of Government in Matuga sub-county, Kwale County on Monday, May 6, 2024.

The national government is committed to paying counties their mineral royalties of Sh2.9 billion, Mining CS Salim Mvurya has said.

At least 32 counties are yet to receive their mineral royalties, where Kwale will get Sh1.1 billion, Kilifi Sh350 million and Kajiado Sh660 million.

The new development comes after some counties, mining-affected communities and leaders accused the government of intentionally withholding the funds.

The local leaders decried that the mineral royalties have taken long since the government made the promise.

Mvurya said the funds delayed because of the financial crisis but the Kenya Kwanza administration is determined to see its people benefit from their local resources.

He said that the Ministry of Mining was disorganised and the sector flooded with cartels when Ruto took over.

There is now hope following the amendment of the Mining Act and the formation of a proper legal framework to disburse the mineral royalties.

"There is light at the end of the tunnel because there were no guidelines on how to effectively distribute the funds, but the President directed key reforms on the mining sector that are currently being worked on," he said.

The Mining Act, 2016 requires royalties paid by the holder of mineral rights to be shared by national and county governments and communities on a percentage of 70-20-10.

However, the Act lacked clarity regarding how the funds should be distributed.

Mvurya said the government came up with a well-formulated Royalty Fund Sharing bill to allow the National Treasury to disburse the money smoothly.

He said the ministry was able to gather enough data on how many mining companies operate and the number of counties that should benefit from royalty funds.

Mvurya said before the Kenya Kwanza regime, no money had been sent to counties but after Ruto was sworn in, things were getting better.

He said plans are underway to release the mineral royalties as the Kenyan economy strengthens.

The CS said the ministry wants to bring sanity to the mining sector because it is directly depended on by 2.1 million people across the country.

He said all those who wish to operate in the mining industry should register and adhere to the rules and regulations.

Mvurya issued a stern warning to illegal miners that they would be firmly dealt with once found.

He also urged county and national leaders to be familiar with the Mining Act, as laws are constantly changing, to help spread accurate information to the public.

Mvurya made the statement at the Kenya School of Government in Kwale county, where he launched the Post Mining Land Use Committee.

The committee will collect feedback and oversee the implementation of the recommended projects on Base Titanium's rehabilitated mined land after the company closes.

Kwale Governor Fatuma Achani urged the national government to keep its promise regarding mineral royalties.

She said the counties are eagerly waiting for the money to fund development.

"We had great plans for the royalty money, but years passed without a single cent in our pockets," she said.

Achani took the opportunity to urge residents to turn out in large numbers and submit their views on post-mining land use.

She told them to stop speculating and spreading propaganda and to fully participate in public activities.

Achani stated that the locals have a habit of complaining before gathering the facts.


ADVERTISEMENT

logo© The Star 2024. All rights reserved