1. MINERAL RESOURCES
The mining sector in Kenya is still largely underexplored, and there is a possibility of discovering more minerals through systematic exploration in the country. Investment in the sector has been hindered by lack of proper legislation and regulation. The Mining Act Chapter 306 of the Laws of Kenya has governed the sector. The Act was promulgated in 1940 and was last reviewed in 1987 to match the prevailing contemporary international practice. A comprehensive review of the Mining Act started in 1993 and is now complete and is soon to be published into law. The reviewed act provides for less discretionary powers to the licencing authorities and greater security of tenure. A mineral policy, which did not exist in the current act, has also been formulated.
The law will factor and regularise the activities of small-scale miners. It will also take cognisance of the requirements of the new Environmental Management and Coordination Act of 1999. The Environmental Act has now been passed into law. The Government of Kenya has also embarked on the process of formulating a mineral policy, which does not currently exist in the current statutes. In spite of the challenges, there has been a general improvement and steady growth in the performance of Kenya’s mineral sector in recent years. This is poised to improve with the enactment of the new law and the formation of a full-fledged Mining Ministry.