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State losing lots of wealth to illegal mining, says CS Joho

State losing lots of wealth to illegal mining, says CS Joho
Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho. PHOTO/Reuben Mwambingu
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The country is bleeding mineral wealth through rampant unregulated mining, Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Joho has warned, calling the situation a national crisis.

Speaking before the National Assembly’s Departmental Committee on Environment, Forestry and Mining in Mombasa, Joho revealed that a staggering 95 per cent of mining activities are illegal, threatening not only the sector’s stability but also the nation’s economy.

The CS stressed the urgency of bolstering the ministry’s budget to combat illegal miners and reclaim resources slipping through the government’s fingers. He said some miners have taken advantage of the relaxed enforcement efforts to continue hogging the wealth beneath with impunity.

“We are being robbed of our resources at an alarming rate. Without swift intervention, this theft will strip our nation bare,” Joho declared.

Rogue miner

Joho pointed out the notorious case of a rogue miner in Taita Taveta County, who has allegedly extracted minerals worth billions over the past decade without paying taxes.

After mounting pressure, this miner recently paid a meager Sh30 million in royalties , far less than the actual worth of his activities.

“This individual has mined for 10 years without contributing a single cent in royalties. He only paid Sh 30 million recently after immense pressure, despite having made billions over the years,” Joho revealed during a press briefing following the committee hearing, chaired by Nakuru East MP David Gikaria.

He said the situation is dire, with foreign entities “stealing our minerals,” and claimed that some local authorities may be complicit.

To combat the status quo, the Cabinet Secretary said there was need for increased enforcement to clean up the sector, adding that failure to act now could leave future generations with depleted resources.

Enforcement plan

He proposed laying out clear strategies, including a robust enforcement plan and the establishment of a mining laboratory.

“We urgently need a laboratory because many minerals, once excavated, are mixed with others. Take Titanium, for instance, extracted from the Coastal belt. In many cases, you may find minerals like copper, gold, or silver within the ore. By not testing locally, we lose substantial value,” Joho explained noting that  without proper testing facilities, Kenya has been undervaluing its resources, allowing miners to export materials at a fr action of their true worth.

He called for reforms, including a review of the Mining Act to ensure that royalties are promptly paid to counties and local communities by investors exporting minerals. Understanding the full scope of the country’s mineral wealth, he said, is critical to harnessing Kenya’s potential and securing fair returns for its citizens.

Mining Principal Secretary Elijah Mwangi echoed Joho’s concerns, acknowledging that while some illegal mining operations had been shut down and their machinery seized, much work remains.

“We tested copper from Migori and found a significant amount of gold. However, we operate on a minimal budget of Sh100 million, and without a budget review, we lack the resources to fully implement our plans,” Mwangi told the committee.

Committee chairman David Gikaria assured the ministry of the committee’s support, recognizing the importance of having local laboratories to ensure Kenya gets full value from its mineral exports.

 “Without proper value addition, we are exporting wealth at a loss – up to ten times more than we should be gaining,” Gikaria remarked.

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