Kenya is losing billions of shillings due to illegal mining activities, primarily driven by foreign miners who extract minerals and export them in the form of sand, Mining Cabinet Secretary Hassan Joho revealed on Tuesday.
Joho said that 95% of the country’s mining operations are illegal, and much of the extracted ore contains multiple valuable minerals.
“These miners export the ores in the form of sand, analyze them abroad, and pay royalties for only one mineral, despite extracting many more,” Joho said.
He was speaking in Mombasa after a meeting with the National Assembly Departmental Committee on Environment, Forestry, and Mining, chaired by Nakuru Town East MP David Gikaria.
Joho emphasized the need for stronger enforcement measures, including more police officers on the ground and additional funding.
He also called for the establishment of modern laboratories to analyze exported minerals and ensure their true value is captured before leaving the country.
“We need state-of-the-art labs to analyze the extracted minerals properly because ores often contain a mix of different minerals,” Joho noted. He gave the example of titanium mined along Kenya’s coastal belt, which contains other valuable minerals embedded in the ore.
“If you mine copper ore and analyze it, you may find not only copper but also gold, zinc, or silver. Yet, miners only pay for copper, and the country loses revenue from the other minerals,” Joho added.
The CS announced plans to introduce regulatory changes to ensure Kenya receives fair compensation for its minerals. “When we issue mining and export licenses, we must know exactly what is being mined and exported,” he stressed.
Joho expressed concern that illegal mining and unregulated exports are undermining Kenya’s economy, particularly as mineral deposits deplete over time. He cited Base Titanium, which has been mining along the coast for over a decade and is now preparing to shut down due to dwindling resources.
Joho also highlighted the importance of value addition, noting that processed copper ore can increase in value tenfold. “If copper ore is processed into concentrates, the price jumps from $500 (about KSh64,500) to $5,000 (about KSh645,000). Copper sheets, the next stage, can fetch up to KSh1.3 million,” he explained.
He criticized entities attempting to force the government to allow the export of unprocessed copper ore, asserting that Kenya would defend its stance in court if necessary. Joho also called for legislative changes to ensure that miners pay dues to both the government and local communities.
In some counties, such as Taita Taveta, miners had avoided paying royalties for a decade. “[They] only paid recently after I applied pressure. This must stop,” Joho stated.
The CS further urged for increased funding to support the ministry’s initiatives, including the digitization of Madini House to streamline operations.
