KCM BOARD MEETS CS PETROLEUM AND MINING TO DISCUSS WAY FORWARD FOR INDUSTRY

Last week the Board / Executive Council of KCM met CS John Munyes and gave an extensive presentation on solutions to the many issues and bottlenecks facing the industry. The Ministry agreed to form a 6 man team drawn from the KCM Board and the Ministry to meet quarterly with a mandate to address issues and problems and forge a way forward. President Kenyatta has set a target of 4% of GDP for the mineral industry and much needs to be done to achieve this. KCM is fully committed to playing
its part in making this a reality.Some of the issues discussed were :

1. License Review and Issuance : The process of issuing of licenses has become mired in uncertainty and interference. Even though the MRB has recommended the issuance of the vast majority of licenses on the cadastre, the CS’s office has not signed them. A similar problem exists for Mineral Dealers Licenses which remain pending on the cadastre even though paid for. The map below illustrates the difference between Zimbabwe where licensing is more transparent and Kenya where 80% of licenses remain unissued.


MAP showing mining licenses issued in Kenya and Zimbabwe

We agreed a fast track solution for the Mining and Exploration Licenses awaiting approval] and will be working with Madini to streamline issuance of Mineral Dealers licenses. KCM has also been appointed by the Ministry as an agent to help its members process licenses on the cadastre.

2. Export Permit Procedure : A copy of KCM’s proposal to the Ministry for a new, streamlined andsafer export procedure can be found in the KCM Lobbying section of the Members Portal. KCM
has formulated a more effective, secure system that will no longer delay exports. We are pushing for implementation of this.

3. Working with the Ministry : It was explained to the CS that under the previous administration, the industry was frequently sidelined, ignored and treated with disrespect. In order to address this and form a working bond, KCM, in conjunction with the Ministry will be forming a 6 man team with a mandate to address issues facing the industry. It will meet quarterly.

4. Issues with the Mining Act 2016. As many members are aware, the new Act brought with it many foreseen and unforeseen problems. The only solution to these problems is a review and amendment of key clauses and sections of the Act. This is critical for the industry to be able to function properly and for its future growth. KCM has worked hard on a matrix and review of the Act. This matrix can be seen in the KCM Lobbying section of the Members Portal. KCM will be working closely with the Ministry to push these amendments through parliament in a timely manner.

5. Issues with Political Interference in Mining : It was brought to the attention of the CS that there is increasing political interference in mining ventures by politicians and politically connected individuals out for their own gain. We attained the CS’s assurance that this will not be tolerated by the Ministry and the CS intends to meet with governors of all counties to discuss these issues in the near future. Similarly, we will be following up on any cases of this experienced by our members on a case-by- case basis. So please bring any difficulties you may be experiencing in this area to our attention.

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