New law offers Saccos mining permits

Cabinet Secretary for Mining Najib Balala.

By JOSEPH MASHA

Kenya: The Ministry of Mining will give Saccos and other groups a chance to explore, mine and export minerals if a draft Mining Bill is passed into a law.

The Cabinet Secretary for Mining Najib Balala Tuesday said the proposed law is out to give groups opportunity to work in the industry.

He said the Parliamentary Committee on Environment and Natural Resources headed by Amina Abdalla had a two-day retreat in Kilifi County where they scrutinised the proposed law.

The CS said current mining laws do not give locals, including Saccos, opportunity to apply and get mining and exportations permits or licences. The law, according to Balala, leaves big investors to dominate the sector.

“Artisanal and small-scale mining will be accessed by Saccos. They will get Government support, concessional lending schemes and business training assistance to operate legally,” said Balala.

Balala insisted that his ministry will carry out an inventory to establish all mining companies.

Though he deregistered about 43 mining companies for operating without required licences or failing to meet set conditions, there are many more which need to be exposed, he said. “There are more companies which are operating secretly. I have formed a task force to do an inventory of the companies and establish their legality,” said Balala.

He added lack of proper laws guiding the mining and exportation of minerals has made the country lose billions of shillings in revenue.

Exportation

Balala said the formulation of the minerals and mining policy would seal loopholes through which some companies have been evading payment of taxes.

Abdalla said lack of proper mining policy was to be blamed for the illegal exportation of minerals.

She said her committee was attending the retreat to look at the draft mining policy before they forward it to Parliament for deliberations.

She said the current mining laws were created in 1940 and are outdated and could not address emerging issues in the mining sector.