Kenya's Mining Act: What Licence Holders and Communities Need to Know

Mining in Kenya is governed by the Mining Act, 2016, which modernised a sector previously run under a 1940s-era statute. A foundational principle sits at the centre of it: all minerals in Kenya belong to the Republic, held in trust for the people — regardless of whether they're found on private, community, or public land.

Licence types

Rights are granted as either a permit (small-scale operations) or a licence (large-scale), and proceed through recognised stages: reconnaissance, prospecting, and finally a mining licence once a viable deposit is confirmed. Since 2016, companies — not just individuals — can hold prospecting rights directly.

Royalties, and who actually receives them

Royalty rates vary by mineral — historically including 5% for gold and silver, 8% for manganese, iron ore and coal, 10% for titanium ores, and 12% for diamonds, applied to gross sales value, with rates subject to updated regulations from time to time. Under Section 183(5), royalties are split 70% to national government, 20% to county government, and 10% to the community where operations take place — one of the Act's most significant provisions for local benefit-sharing.

Community and environmental obligations

Large-scale mineral right holders must enter Community Development Agreements, give preference to Kenyan employment and local goods and services, and provide an environmental protection bond covering rehabilitation obligations before operations begin. Detailed mine closure plans are mandatory, not optional add-ons.

The digital cadastre

Applications, mapping, and licence management run through Kenya's online Mining Cadastre Portal, intended to improve transparency around who holds what rights, where.

Where we come in

We advise investors on mineral rights applications and licence structuring, guide compliance with community development and environmental obligations, and represent communities and license holders in royalty and land-access disputes.

This article is general information, not legal advice, and reflects the law as it currently stands. Rates, fees, and procedures are subject to change.