The Government of Kenya adopted in late January 2014 a draft mining law that will be the object of a discussion in Parliament in 2014. The adoption of this bill falls within the framework of the Kenyan policy for developing its mining sector through the adoption of multiple regulations, announced in December 2013.

This law must replace the Mining Act (Cap. 306), dated 1 October 1940,revised three times, notably in 2012 by the Mining (Local Equity Participations) Regulations, 2012 (L.N. No.118 of 2012) dated 27 September 2012, the implications of which we developed in a previous article, which had been the object of numerous critiques and uncertainties as to its application.

The bill will be debated before Parliament, notably, the provisions concerning: 

  • the environmental protection bonds (sponsorship for the protection of the environment): the bill requires candidates to obtain a mining license or authorisation to provide a bond or financial guarantee sufficient to cover the costs involved with the environmental obligations and site rehabilitation by the holder of a mining license or authorisation, issued under the bill.
  • the creation of the National Mining Corporation, an entity set up to protect the Government interest in the mining sector, and in this sense, authorized to act in the courts, conclude contracts, and borrow money; and
  • the repartition of royalties between the central government, the regional government, and the community, respectively of 75%, 20% and 15%.