Why Government Went After Johnstone Muthama's Company

Former Machakos Senator Johnstone Muthama's gemstone business recently became a victim of a Government crackdown on what was termed "unlicensed firms".

Rockland Kenya Limited had its license to export gems revoked by the Ministry of Mining which was, at the time, under Amb. Dan Kazungu.

Mr Muthama claims that the clamp down on the company's operations as the court case continues cost him Sh4 Millions before Justice George Odunga lifted the order.

The former Mining Secretary in 2017 published a list of companies that were free to continue in the precious stones trade leaving out Mr Muthama's firm

[caption caption="Johnstone Muthama"][/caption]

In protest, the former Senator wrote a letter to the Ministry expressing his discontent at the move and raised questions over the selected companies.

"We fail to understand how the said companies, which are not known and or never made an impact in the mineral sector in Kenya, managed to get a head start over companies that have been in Kenya’s mineral sector for a period in excess of 10 years," the protest letter read in part.

In response, Mr Kazungu released a memo outlining the new conditions that Muthama's company had allegedly failed to comply with.

The former CS's letter further outlined that only Aurical Kenya Limited, Modogashe Agencies Limited and Match Electricals Limited were the duly licensed firms in the business.

Muthama's rebuttal stated: "Your notice sounds like we were going back to the situation where the exclusive licence was given in the 1990s to Goldenberg International. This is a situation that scares everybody."

Details of the exchange between the National Super Alliance (NASA) leader and the government were contained in court papers filed at the High Court.

[caption caption="Former Senator Muthama with veteran lawyer John Khaminwa"][/caption]