Mining engineers have cautioned that Kenya could lose billions of shillings in investment, thousands of employment opportunities and valuable export earnings unless the government urgently addresses persistent inefficiencies in the country’s mineral licensing system.
The warning comes as the mining industry continues to feel the effects of the closure of Australian-owned Base Titanium’s operations in Kwale, which ceased production in December 2024 after more than a decade as Kenya’s leading mineral exporter.
According to the Economic Survey 2026, the value of Kenya’s mineral production declined from KSh25.5 billion in 2024 to KSh20.3 billion in 2025. Despite the drop in output, government revenue from royalties and licence fees increased from KSh3.3 billion in the 2023/24 financial year to KSh3.8 billion in 2024/25. Industry players, however, say challenges have intensified during the 2025/26 financial year.
Although successive administrations have identified mining as a key pillar for industrialisation and economic transformation, experts argue that administrative shortcomings continue to prevent the sector from reaching its full potential.
The Mining Engineers Society of Kenya (MESK) says prolonged delays, inconsistent decision-making and uncertainty surrounding the allocation of mineral rights remain the biggest barriers to investment, despite Kenya having one of the region’s most progressive mining laws.
According to the society, investors frequently experience years-long delays in securing prospecting and mining licences through the government’s online cadastre system, even after satisfying all legal requirements. In contrast, some applications are reportedly approved within a few months, raising concerns over fairness, transparency and consistency.
MESK Chairman Joseph Komu said Kenya possesses significant mineral resources, a modern legal framework and growing investor interest, but inefficiencies in administering mineral rights continue to undermine investor confidence.
He noted that mining projects require substantial upfront capital and often take years before generating returns, making predictable licensing timelines essential for attracting investment. Without certainty, financiers become reluctant to support projects, while international investors increasingly redirect capital to countries with more efficient regulatory systems.
The engineers argue that although the Mining Act, 2016 established clear procedures, timelines and technical standards for issuing mineral rights, implementation has fallen short of the law’s intentions.
They also expressed concern over the exclusion of artisanal and small-scale miners from the formal licensing framework. These miners provide livelihoods in mineral-rich counties such as Migori, Kakamega, Taita Taveta, Kwale, Turkana and West Pokot. Their continued exclusion limits access to financing, technology, skills development and workplace safety while reducing potential tax revenues for the government.
Another issue raised is the growing number of mineral rights applications held by government agencies across large sections of prospective mining areas. According to the engineers, the Mining Act assigns government the role of regulating the sector rather than competing directly for mineral rights.
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They further claim that some government-held applications exceed the maximum acreage permitted under the law, effectively preventing private investors from accessing commercially attractive exploration sites. Komu said this creates a contradiction where the government seeks to attract investment while simultaneously restricting access to mineral opportunities.
The society has also criticised what it describes as speculative acquisition of mining licences. Under international mining practice, commercial mining licences are typically granted only after extensive geological surveys, drilling, laboratory testing and feasibility studies confirm the economic viability of a mineral deposit.
However, the engineers allege that some licence holders obtain mining rights before completing adequate exploration, only to later undertake basic prospecting activities. They warn that such practices weaken the distinction between prospecting and mining licences, erode investor confidence and compromise the credibility of Kenya’s licensing system.
The government has been implementing reforms aimed at increasing mining’s contribution to Kenya’s Gross Domestic Product from the current one per cent to at least 10 per cent by 2030, equivalent to roughly KSh1.6 trillion. Among the key reforms is the Mining Act, 2016, which replaced colonial-era legislation with a framework intended to improve transparency, strengthen regulation and make the sector more attractive to investors.
