Kwale governor demands Sh2.9b mining royalties

Base Titanium plant in Kwale county. [File, Standard]

Kwale Governor Fatuma Achani is demanding Sh2.9 billion mining royalties held by the National Treasury since 2016.
The accrued royalties are from the mining of rutile, zircon, and ilmenite by Base Titanium. Achani said the royalties approved a while back should be released to the devolved governments
According to recent estimates from the Ministry of Mining, out of 32 mineral-rich counties, Kwale, Kilifi, and Kajiado are expected to receive the lion’s share of the mining proceeds held by the national government.
The State Department of Mining recently said that a legal lacuna that blocked the disbursement of royalties to counties has been resolved by coming into force of the County Governments Additional Allocations Act of 2022.
A royalty is a government fee imposed on minerals produced at a mine or on the revenue generated by the minerals sold from a mine.
Achani maintained that for Kwale to benefit from its mineral deposits the much-anticipated royalty pay-out should be fast-tracked to help improve the social-economic welfare of the people.
She called on the national government to keep its promise on mineral royalties saying the county plans to use the money on development projects and empower residents’ in the mining sector.
“We want the royalty funds to be used for purposes such as providing redress for the harmful effects of mining on the affected communities and supporting alternative livelihood projects,” she said.
According to the Mining Act of 2016, 70 per cent of mineral royalties go to the national government, 20 per cent to the county government, and 10 per cent to the local community.
The renewed push for the national government to release the mineral royalties comes at a time when Base Titanium is closing operations in Kwale.
The firm announced that it will cease mining activities in Kwale by the end of 2024, citing the depletion of minerals in their operational areas in Msambweni sub county.
Achani said that despite enacting the Mining Act of 2016 to sanitise the sector, less has been achieved in terms of revenue and livelihoods of the people.
The governor regretted that the delay in releasing the royalty cash means that the rich mineral deposits have failed to translate to overall economic development for the devolved units.
“Minerals play a great role in raising revenues for the country, and we are eagerly awaiting to receive our share of the proceeds to help accelerate development at the grassroots,” she said.
She said her administration is determined to collaborate with the national government to develop the mineral sector and attract new investors.
Base Titanium External Affairs General Manager Simon Wall said they will cease operations in December 2024, having failed to find new mineral resources.
Mr Wall revealed that as part of winding down its mining operations, Base Titanium has commissioned feasibility studies to establish the best way to utilise the land.
He said Base Titanium has kicked off systematic post-mining closure phases and land reclamation plans.
He further stated that several options currently being considered include large-scale agriculture, sustainable conservation, and industrial training.
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