Mining, Blue Economy and Maritime Affairs Cabinet Secretary Ali Hassan Joho has pushed for amendments to the Sovereign Wealth Fund (SWF) Bill, 2026, aimed at retaining the State Department for Mining’s role in the collection and management of revenues from the sector.

During a working retreat with the National Assembly Departmental Committee on Environment, Forestry and Mining, Joho, accompanied by Principal Secretary Harry Kimtai, urged lawmakers to adopt the Ministry’s proposed amendments as the Bill progresses through Parliament.

The legislation, which has undergone first reading and is open for public participation, seeks to establish a framework for managing proceeds from minerals, petroleum and other natural resources through stabilisation, infrastructure and future generations funds.

Joho opposed the proposed amendment to Section 186 of the Mining Act that would transfer the collection of fees, charges and royalties from the State Department for Mining to the Kenya Revenue Authority (KRA).

“We oppose the removal of the State Department for Mining in the collection of these revenues,” he said.

The Ministry proposes that the department retain collection responsibilities while remitting a larger share to KRA in line with statutory requirements, with the remainder supporting operational activities. The Ministry also proposes excluding payments related to grants or assignments of mineral rights from SWF contributions and anchoring the Mineral Development Levy in the Mining Act.

Parliamentary scrutiny of the Bill

Committee Chairperson Hon. Vincent Musyoka (MP Mwala) directed the Ministry to present its financial proposals before the Finance and National Planning Committee ahead of the Bill’s third reading. “We need to streamline any grey areas,” he said. MP Leo Wamuthende supported the Ministry’s position, noting that the Mining Department is better placed to manage sector-specific revenue processes.

Controller of Budget Margaret Nyakang’o has raised concerns over the proposed framework, warning that it could create a parallel financial structure outside the Consolidated Fund. In her submissions, she cited potential conflict with Article 206 of the Constitution and recommended that all natural resource revenues first be paid into the Consolidated Fund before transfer to the Sovereign Wealth Fund through parliamentary appropriation.

Sovereign Wealth Fund Framework review

Nyakang’o also flagged risks linked to oversight of withdrawals, governance concerns over executive influence on the SWF Board, and limited checks on investment of mineral revenues.

The Bill proposes the creation of stabilisation, infrastructure and future generations funds to manage proceeds from extractive resources.

Joho said the Ministry’s proposals are aimed at strengthening efficiency in revenue management and supporting sector development. Parliament is expected to continue reviewing the Bill alongside public submissions before it proceeds to the next stage of debate.