Kenya’s coastal communities are set to reap big from resources emanating from mining activities in the region.

This follows the signing and launch of a new strategy to among others, ensure local communities in Kwale tap 1 per cent of revenue from the mining company Base Titanium each financial year.

Mining and Petroleum Cabinet Secretary John Munyes says that signing of the Community Development Agreement Committee (CDAC) will open up Kwale and Mombasa counties to social economic development from resources emanating from mining activities.

“Last financial year, Base Titanium made Sh25 billion of which 1 per cent of that amount will go to the CDAC,” he told the media in Diani yesterday.

Munyes assured residents that the 1 per cent funds, estimated at Sh250 million will be disbursed immediately after the signing and launch ceremony.

“The funds that will be disbursed to this CDAC are for the financial year 2020-2021,” he said. Mshenga Ruga, the CDAC chair said that already the committee has identified key areas of the projects where they will invest the funds.

“We will put key emphasis on infrastructure, water and education with the first funds that will be disbursed to us,” he said.

Base Titanium Community Relations Manager Pius Kassim said the journey towards realisation of the CDACs had been long and a lot of stakeholders were involved in the process.

“The implementation of the CDACs to the three sub-counties is pursuant to the Mining Act 2016 and Community Development Agreement regulations 2017 which prescribes benefits from mining operations to trickle down to the community, where a guaranteed or mandatory amount from the licence holder will go towards supporting community development projects in host communities,” he said.

Kassim noted that some of the accrued benefits from the signing will include: Enhanced community participation in the selection and prioritisation of the community projects and monitoring their delivery.

Also there will be increased economic benefits to host communities through local content in service delivery, such as  local contractors being used to deliver community development projects in their areas.

He said even though the 1 per cent will be delivered through the CDAC, Base Titanium was still committed towards sustaining some of the projects that it had initially started to help the communities surrounding the mine site.

Livelihood projects

“Besides the CDAC kitty, yes, we will continue supporting ongoing community development programmes such as scholarship for ongoing students, community health and other livelihood projects which may not have been taken onboard by the CDAC’s,” said Kassim.

In terms of projects, the CDAC team focus will be mainly in funding infrastructural development projects for education, health, water and power.

Other targetted projects will include supporting sporting activities and special programmes that benefit women, youths and persons with disabilities.

Kassim said the projects were chosen by the host communities through consultative meetings conducted by all the three CDACs in February or March 2021 before being taken back to the same communities for validation.

Community development agreements committee(CDACs) are increasingly being used by mining companies as a way to better define their relationships and obligations with impacted communities. 

Although legislative requirements for CDACs are still relatively rare, governments increasingly are considering legislation that would define when such an agreement is required and what subject matter should it cover.

When well-managed, solid mineral and hydrocarbon resources offer a real opportunity for countries to achieve sustainable economic growth and reduce poverty.

Msambweni, Likoni and Lunga Lunga members of parliament have given a thumbs up for the CDAC, saying they are set to benefit communities around. Lunga Lunga MP Khatib Mwashetani welcomed the idea of CDAC, saying it was long overdue for the community to benefit from profits generated by mining activities.

“The good thing is that communities have a room to prioritise their projects to be implemented by CDAC.” he said.