Joho has work cut out to steer mining, blue economy sectors

Investment, Trade and Industry Cabinet Secretary Salim Mvurya (right) hands over to CS Hassan Joho who takes over the Mining, Blue Economy and Maritime Affairs docket, at the Works House in Nairobi. [Boniface Okendo, Standard]

A herculean task awaits Mining and Blue Economy Cabinet Secretary Hassan Joho.

Joho is the fourth leader from the Coast to head the ministry, billed as a springboard to the region’s economic takeoff.

Former President Uhuru Kenyatta appointed Najib Balala as Mining CS in 2013 before he was moved to the Tourism docket. Balala was replaced at the Mining Ministry by former Malindi MP Dan Kazungu.

President William Ruto appointed Joho to the Mining docket Thursday, taking over from former Kwale Governor Salim Mvurya.

He is expected to actualise President Ruto’s agenda to ensure value addition for the minerals extracted in Kenya and end the export of raw materials.

The Coast has huge mineral deposits like the unexploited Sh3 trillion niobium in Kwale county.

On the Blue Economy, Kenya has sovereign rights to explore, exploit, conserve, and manage the natural resources within the 142,400 km Exclusive Economic Zone (EEZ) and continental shelf at the Coast.

Joho will drive the Kenya Kwanza agenda for fisheries currently struggling as it has achieved a paltry 24,580 metric tonnes despite the huge potential of the Indian Ocean.

Kenya Maritime Authority (KMA) officials say that sustainable harvesting of marine fisheries can earn the country Sh42 billion annually, as opposed to the current Sh5 billion.

Sustainably harvested

KMA Maritime Trade and Development acting Director Joseph Kapeku said that the potential marine fish stocks can be sustainably harvested and landed annually.

While on a tour of the Coast last week, President Ruto announced plans to boost the blue economy after years of posting low returns.

He revealed that the government recently licensed the first Kenyan-flagged deep-sea industrial fishing vessel with a capacity of 10,000 metric tonnes of fish a year. The government also plans to buy 12 to 15 similar ships in three years.

He said the pioneer industrial fishing vessel targeted tuna fish in the Indian Ocean and is set to earn the country Sh4 billion annually.

“We have licensed the first industrial fishing vessel that will bring 10,000 metric tonnes of fish yearly and earn the country Sh4 billion in profit. It is flying the Kenyan flag. We plan to acquire 12 to 15 industrial fishing vessels in the next three years to promote tuna processing in the country,” he stated.

The President announced government plans to raise the blue economy sector’s annual revenue from the current Sh20 billion to Sh120 billion.

Construction of the first phase of the Sh2 billion Shimoni port in Kwale county is expected to boost the blue economy.

However, construction of phase one of the Liwatoni fish complex in Mombasa county, at a cost of cost Sh1.4 billion, has stalled over the payment row with the contractor. The complex was expected to promote industrial fishing of tuna and generate 3,000 jobs.

Yet to be exploited

The government recently acquired 123 small fishing vessels from the Sh10 billion World Bank loan under the Kenya Marine Fisheries and Socio-Economic Development for Mombasa, Kilifi, Kwale, Tana River and Lamu counties.

The President directed that 25 deep-sea fishing boats be procured in the next four months at a cost of Sh600 million.

He also said the government has allocated Sh1.2 billion to develop five fish land sites in the coastal counties and promised that beach management units will have modern fish markets and storage facilities.

The state has embarked on a plan to establish a Sh1.4 billion national mariculture resource training center in Shimoni.

On minerals, a recent national survey under Mvurya’s watch found that Kenya’s has 970 minerals that can transform the economy if well tapped.

The minerals yet to be exploited include niobium and huge deposits of rare earth both at Mrima Hills in Kwale county, precious metals, gemstones, granite, copper base minerals, manganese, coltan, nickel chromite, thorium, cobalt, zinc, and lead.

About 15 years ago, Cortec Mining Kenya Limited established that the Mrima Hill had niobium deposits. The area is said to be one of the top five sites with a high concentration of rare earth deposits globally.

Meanwhile, Base Titanium, set to wind up its mineral sand operations in Kwale county, has been the country’s largest mining entity since 2014, generating billions of shillings in titanium ore exports.

The Kwale operations generated Sh36 billion in the 2022 financial year and the government earned Sh7.42 billion in royalties and taxes in the year ending June 2022. Base Titanium paid the government Sh7.17 billion ($49.3 million) in royalties and taxes in the year ending June 2023.

Taita Taveta county has a modern gemstone processing plant. The region has deposits of tsavorite, ruby, chrome tourmaline, yellow tourmaline, red garnets, green garnets, tanzanite, quartz, and iron ore.

Under Mvurya’s leadership, the government lifted the ban on mining and prospecting licenses in December 2019 and implemented policies for sector growth.

Joho committed to revive the sector to ensure “the country does not import raw materials.”

Joho and Mvurya, who took over the Trade docket, promised to collaborate and leverage on opportunities offered by the crucial sectors to improve the economy.

“We will continue to build on our synergies especially on areas of value addition to build the sectors as the next economic frontiers,” said the Mining CS.

Mvurya noted that he hands over the Ministry having rolled out nine mineral laboratory services.