State should harness resources in counties to end poverty amid plenty

By David Ohito

As Kenya tries to implement devolution, resources in the 47 counties should be explored to boost incomes, create jobs and sustain development.

Many questions beckon, however. Can a county endowed with minerals remain dependent on the Central government with its communities reeling in poverty? Why would such a county depend on the Central administration and donors for critical amenity services?

Is it possible, for example in Kwale County, that residents can share equitably in the accruing benefits from titanium mining?

There have been discourses across Kenya like in many other Sub-Saharan countries, which are ranked among the world’s resource rich regions yet many of these nations are long away from attaining their development potentials.

In a newly published book; Geological Resources and Good Governance in Sub-Saharan Africa, editors Jurgen Runge and James Shikwati pitch a case for the relationship between good governance—transparency and sustainable exploitation of resources.

The editors of the book, which has 25 contributions, warn of potential boom and risks in resources including the newly found oil in Uganda.

Africa countries exported oil worth $160 billion but there is nothing to show for it since the continent is afflicted by conflict, poverty, disease, illiteracy and low infrastructure penetration.

Shikwati argues sound management of geological resources in Sub-Saharan Africa will transform the vast mineral wealth into a blessing, not a curse.

Authors argue for a change in approach in which minerals are mined at the expense of impoverished communities.

For Kenya, like many other countries in the region, "this has to start with mining agreements and contracts that capture both the interests of the citizens and those of investors."

Kenya has had the cases of titanium mining at the Coast, gold fields of Kakamega, Bondo and Nyatike. There is talk of oil prospecting in Isiolo. Shikwati warns insufficient information on mapped resources and data regarding the exploitation of Sub-Saharan Africa, Kenya included, has restricted the countries to poverty amid vast wealth.

Shikwati argues: "Agreements on mining ought to capture aspects of transparency and accountability from both government and mining companies; clear definitions on what is public and private property; the rights of communities on whose land minerals are found; the right to information; the urgent need to have legitimate political governance to uphold the interests of the citizenry.

He argues for the counties to profit from the deals, there is need to invest in Kenya’s artisan miners to allow them scale up their productivity.

The Ministry of Finance ought to ensure budgetary allocation to the mining sector to allow entrepreneurs join the mining sector as opposed to the current situation, where large-scale mining companies are all foreign.

The Government should play its role as a regulator to ensure sound stewardship of the mining sector to prevent negative aspects to environment, prevent the fleecing of gullible citizens. It is therefore important to train local geological and mining engineers and lawyers to ensure the Government is not cheated into contracts that have minimal returns to the country.

Runge and Shikwati question why countries south of Sahara, which is home to Africa’s greatest concentration of wealth in geological resources, are the poorest nations.

Sudan, South Sudan, Ghana and Uganda have struck oil. Democratic Republic of Congo is endowed with tropical forests, gold, diamond among many other high potential mineral deposits.

In the case of Kwale, author CA Khamala argues Kenyan laws should be reformed to facilitate community involvement in mining negotiations.

Khamala argues policy makers, administrators and managers concerned with a goal of maximizing the social benefits derived from natural resources are required to balance between environmental degradation and community participation.

The writer works for Standard Group