Urugoli MediaUrugoli Media2 years ago1930

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KENYA’S MINING 2023: Current Status & Future Possibilities

Whilst the new Act was an improvement on the old legislation (which had been in place since the 1940s), productivity in the mining sector remains low, with only a handful of projects in a sector that is largely under-explored and with a potential to contribute to Kenya’s #economy significantly.

Kenya’s mining legislation was overhauled in 2016 by introducing the Mining Act (the Act), which was considered a modern legislation expected to transform and expand the #mining sector.

Whilst the new Act was an improvement on the old legislation (which had been in place since the 1940s), productivity in the mining sector remains low, with only a handful of projects in a sector that is largely under-explored and with a potential to contribute to Kenya’s #economy significantly.

The growth of Kenya’s mining sector has been further stagnated by the moratorium issued by the Government in 2019, restricting the processing and issuance of licenses and renewal applications. The Government has argued that the moratorium was necessary for streamlining the sector, mapping mineral resources, and ensuring the validity of permits and activities.

However, the moratorium's extent, duration and general ambiguity have negatively impacted the sector, frustrating #investors, and other #stakeholders by preventing any new investments and slowing down operations and possible expansion of existing projects.

Recent pronouncements by the new Government indicate a possible

“light-at-the-end-of-the-tunnel moment” and end to the moratorium, with President Ruto highlighting the need for a conducive business environment for investors and a pledge to unlock the potential of the sector.

As investors and stakeholders await this intervention, other key aspects will significantly feature in the growth of Kenya’s mining space,

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