In October 1 this year it will be 73 years since the Mining act became law. Drafted and legalized in 1940 it is one of the oldest laws in Kenya. Reviews have been done only two times in 1972 and later 1987. The problems plaguing the mining sector can be traced back to the bill but with the draft Geology Minerals and Mining Bill order might be restored in the industry.
Transparency, management and revenue allocation have been the emphasis of this new bill. 35% of shareholding by locals of foreign companies that invest in mineral mining seems to be most notable inclusion in the bill. Before, firms paid a meager 5% of their gross revenue to the national government which was outrageous considering the millions these companies shipped abroad. In the draft law royalties on sales of the minerals are calculated based on the value of the minerals. the higher the value of the mineral the higher the royalties paid. Critical also was the definition other word "Mineral" which had not been defined before. This will hep determine under whose jurisdiction they fall to.
Various bodies will also be formed, making the department of mines and geology under the the former ministry of environment and natural resources, defunct. This decentralization will lead to the formation of the Kenya Geology Minerals and Mining Authority, The Kenya Geological Survey, The Mining Directorate, The Kenya Mining Investment Corporation and the Mining Disputes Resolution Tribunal. The functions of these bodies must however be clearly outlined to avoid the repetition of roles and conflicts of interests with other constitutional bodies like the national land commission and the judiciary it will also seek to increase the number of mining licenses and raise more money from issuance of exploration licenses.
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