Mining Cabinet Secretary Hassan Joho announced a raft of new regulations seeking to overhaul the sector after discovering that some investors have multiple dormant licences but no financial backing to support their endeavors.
Speaking at Kenya Mining Investment Conference on Tuesday, Joho announced that going forward, investors will be required to show proof of funds before being granted licences to engage in mining services in the country.
Additionally, the CS announced that the government will increase the mining fee licences across the country, a decision informed by the need to generate additional revenues from the sector.
''If you want to come to this specific place, it is not going to be child's play. If someone complains of a Ksh500,000 mining licence fee, then I can tell you that they are not serious investors,'' Joho stated.
''Look at, for example, a mine like the Base Titanium, the initial investment was USD350 million (Ksh45.3 billion) and the licence was only Ksh500,000 and even at that time, the price was Ksh50,000,'' he added.
Joho stated that some investors in the sector have, over time, been operating based on fees set when the current economic dynamics were not in play.
Further, the CS revealed that the investors have been taking advantage of the government's reluctance by applying for licences and keeping them, even when they do not have the money to see through the projects to fruition.
According to the CS, the new raft of requirements will ensure that Kenya is not a playing ground for individuals who just seek to hold licences with no meaningful economic activities.
The government, therefore, is implementing a raft of additional policies aimed at revitalising the sector. The policy will also promote value addition on the Kenyan minerals after they are extracted.
At the same time, the CS announced that the Ministry will need an additional budget of Ksh120 billion to optimise the mining areas that have since been identified.
''It varies but we are looking at more than Ksh120 billion worth of investments, but specifically for every mine has a different value in terms of investments,'' the CS added.
He added that the budgetary requirements will likely go higher as the government continues to identify more mining sites in the country.
The Mining CS the need for more budgetary allocation stems from the recently concluded geological and mapping survey that was commissioned by his ministry.
Joho has been keen on implementing a raft of strategies to control some cartels that in the past had been exploiting the government and Kenyans working within the sector.
