Taita Taveta Sh11 billion steel plant to unlock its iron ore sector

Taita Taveta Governor Andrew Mwadime (middle) flagged off the first haul of iron ore for the Sh11 billion Devki Steel plant yesterday. [Renson Mnyamwezi, Standard] 

Taita Taveta Governor Andrew Mwadime yesterday flagged off the first haul of iron ore from Kishushe Ranch to the Sh11 billion steel factory owned by Devik Group of Companies in Voi.

The transportation of over 10,000 tonnes of iron ore from Kishushe in Taveta marked the start of the multi-billion steel manufacturing venture in the Manga area of Voi in Taveta sub-county.

Governor Mwadime also said that this was a major milestone in the county's journey to unlock the industrialisation and manufacturing sectors in the county.

Mwadime, the iron ore value addition was a big score for the county, as it is expected to revolutionise the mining subsector in the region that is endowed with diverse mineral deposits.

Apart from iron ore, the county is rich with quartz, mica, copper, and manganese, among other industrial and precious gemstones whose potential is yet to be fully harnessed.

Records from the Mining Ministry reveal that about 70 per cent of gemstone mining is carried out in the region, but the mines have been benefiting outsiders at the expense of locals, especially artisanal miners who have been denied mining consents and licences to extract minerals.

Gajesh General Stores Limited iron ore mining site at Kishushe Ranching Cooperative Society in Taita Sub-County, Taita Taveta County. [Renson Mnyamwezi, Standard] 

The project comes at a time when the county is still grappling with a shortage of skilled labour, like mining engineers and geologists and low on-source revenue.

Yesterday, Mr Mwadime said the project, once fully operationalised later this year, will provide 900 direct jobs for the local community, whose larger population is living below the poverty line.

Finance and planning executive Elijah Mwazo disclosed that the Manga factory is expected to raise business opportunities and improve on-source revenue collection.

He revealed that the county is expected to collect Sh45 million per month and Sh540 million annually, respectively, as on-source revenue once the project is fully operationalised.

Currently, the county has not been meeting its on-source revenue targets and has a deficit of about Sh400 million out of 660 million annual targets as the financial year ends on June 30th this month.

“The new project is the first of its kind in the county and will push the county to the next level in development. It is a game-changer, and its implementation is a major step towards realising wealth and employment creation in the county,” the governor spoke at Kishushe Ranch yesterday.

“The manufacturing sector is one of the major sectors and drivers of the country’s economy that generates employment opportunities and own-source revenue and should be supported by all, as it will contribute to the country’s GDP.

Following the operationalisation of the mega-plant, we expect the country’s GDP to grow tremendously,” he said.

“This project will drive the industrialisation agenda of the county and country at large. The region will be a manufacturing hub owing to its immense variety of assorted mineral deposits,” said the governor.

“This is a historic investment with a big impact on the people of this region, which has never witnessed any such heavy investment in the past. This is the first project of its kind to be constructed in the region since independence,” added Mwadime.

Ranch secretary Wilfred Mwalimo revealed that the investor requires about 150,000 metric tonnes of iron ore per month for operation, and the huge investment is expected to have a major economic impact on the local community.

Mwalimo, however, noted that poor road networks and perennial water shortages remain a major challenge facing the area. 

“The journey has been tough, but the dream has come true at the end. The full operationalisation of the steel factor is a major turning point, and residents will get jobs, the local economy will open up, and businesses will also thrive,” said Mwalimo. 

Senior officials of two mining companies extracting iron ore in the area, Samrudha Resource Kenya and Gajeshi General Stores Limited, said there is no business that can thrive without the goodwill of the local people. 

Parag Pawar of Samrudha Company said the community support and belief in its mission will drive them to maintain high standards of excellence, integrity and service. 

“We believe that business must go beyond profit. Our role as investors is to create jobs, empower local talent, protect small-scale businesses and the environment, and contribute to the social wellbeing of the county people, and that is why we are proud of launching the faff-off ceremony,” stated the investor. 

Samurudha and Gajesh, companies that have been subcontracted by Devik Mills, yesterday sold a combined 10000 tonnes of iron ore to the plant. 

“We will align our efforts with the county’s development agenda,” added Gadiel Maghanga, an investor with the Gajesh mining company. 

The region is rich in iron ore deposits that have not been fully exploited to benefit the community.

Records show that the area also has 65 per cent of high-quality iron ore and has the potential to produce more than 2,000 tonnes of the mineral daily, which is enough to sustain the steel manufacturing plant.

Several geological studies, including the Kenya-Austria Mineral Exploration Project, reveal that the county has a huge mineral potential, which Kenya could rely on for over a century.