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Given full attention, mining sector will transform Kenya’s economy

Given full attention, mining sector will transform Kenya’s economy

Mining Principal Secretary (PS) Elijah Mwangi’s interview with the Business Daily last week revealed what has been achieved in mining sector.

It was a timely effort as it dispelled an image of a department operating in managed secrecy. However, the PS did not talk about the full results of the minerals survey done a few years back.

There is no compelling legal reason Kenyans should not know what mineral wealth is in their country, and this includes minerals categorised as strategic.

Security or strategic nature of minerals is defined and commercialised through specific regulations and licensing protocols, which do not warrant secrecy. The PS explained a licensing process that weeds out speculators who have in the past slowed down real progress in the extractive sectors.

However, the licensing process should allow for ample appeal process to deal with perceived or real unfairness to applicants.

What is also impressive is the elaborate process introduced to manage hitherto unruly artisanal participants by organising them in manageable collectives to ensure order, safety, accountability and compliance.

For the PS, the next area of focus should be creation of critical skills in the mining sector, especially by partnering with selected universities and technical and vocational education and training institutions (TVETs) located in mineral rich counties.

This is in addition to seeking bilateral partnerships with selected countries to upskill mining regulatory institutions.

Further, the mining department should work with Kenya Chamber of Mines to develop sufficient professional capacity within their organisation, a factor crucial in furthering self-regulation and providing an effective forum for engaging investors.

Mining is a key production sector and a GDP multiplier that increases national wealth, strengthens balance of payment, a massive employer and creator of rural incomes. Mining feeds into other economic sectors like manufacturing , construction, SMEs and agriculture, if we have phosphates.

Critical energy and technology minerals, some of which exist in Kenya, are in high global demand as key drivers of ongoing transition to renewable energy.

Accelerated investments in these minerals is a more positive contribution to climate efforts by Kenya, than waiting for climate finance handouts which Western countries are not ready to give. Once complete information on all minerals is catalogued and published, the ministry should embark on elaborate global investment promotion campaigns at all available forums.

The PS in charge of petroleum should similarly inform the public where Kenya stands in respect of the neglected oil extractive sector, and more specifically when and how oil reserves beneath Turkana County will be commercialised.

It is commercialisation of Uganda’s oil and Tanzania’s natural gas that will differentiate their economic superiority above Kenya.

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