Cabinet Secretary for Mining, Blue Economy and Maritime Affairs Hassan Ali Joho has ordered the suspension of mining operations by a major mining company over alleged non-compliance with Kenya’s mining laws.
The suspension marks one of the strongest regulatory actions taken against a major mining operator in recent years and underscores the government’s push to tighten compliance, improve revenuecollection,n and promote greater value addition in Kenya’s extractive sector.
The suspension will remain in force until the company fully complies with the Mining Act, its regulations, and all other applicable laws governing the country’s mining sector.
In a statement, the Ministry said the decision followed years of sustained engagement between the State Department for Mining and the company over its statutory obligations under the Mining Act, Cap. 306, the Mining (Licence and Permit) Regulations, 2017, the Mining (Royalty Collection and Management) Regulations, 2024, and other relevant legal frameworks.
Despite the engagements, the Ministry said several critical compliance issues remain unresolved.
Among the concerns cited are the lack of a clear mineral beneficiation and value-addition strategy, outstanding royalty reconciliation and payment obligations, insufficient export reporting and reconciliation, poor implementation of Community Development Agreements (CDAs), inadequate employment and skills transfer plans for Kenyan citizens, weak procurement of locally available goods and services, and environmental compliance shortcomings.
“The operations have been suspended until the company fully complies with the Mining Act, its Regulations and all other applicable laws governing Kenya’s mining sector,” the Ministry said.
The company has been directed to submit comprehensive documentation and evidence demonstrating full compliance with all statutory obligations, while addressing any outstanding liabilities before it can be allowed to resume mining operations.
Joho said the government would continue enforcing compliance across the mining sector to ensure the country’s natural resources benefit Kenyans.
“The Ministry remains steadfast in its commitment to ensuring that Kenya’s mineral resources are exploited responsibly, sustainably, and in a manner that delivers maximum economic value to the country while safeguarding the environment and protecting the interests of host communities,” he said.
The Mining Act, 2016 is the principal legislation governing the exploration, extraction, and management of Kenya’s mineral resources.
It replaced colonial-era mining laws with a modern legal framework designed to ensure that the country’s mineral wealth delivers greater benefits to the public while promoting transparency, sustainability, and responsible resource management.
The law provides for equitable sharing of mining royalties among the national government, county governments, and host communities, ensuring that communities living in mining areas directly benefit from resource extraction.
It also requires large-scale mining companies to enter into Community Development Agreements, while prioritizing the employment of Kenyans and the procurement of locally available goods and services.
To improve transparency and efficiency in the sector, the Act introduced an online mining cadastre system that tracks mineral rights and licensing, helping to reduce disputes and overlapping claims through a clearly defined grid system.
The legislation also formally recognizes and regulates artisanal and small-scale miners, integrating them into the formal economy and promoting safer working conditions.
In addition, it places a strong emphasis on environmental protection by requiring mining companies to adopt sustainable practices and undertake rehabilitation of mining sites once extraction activities end.
