Govt Shuts Down 3000 Companies

The government made a significant announcement, declaring the closure of 3,000 companies, which included illegal miners and mineral dealers. This action came after a comprehensive four-year audit.

The decision to shutter these companies was disclosed by Salim Mvurya, the Mining Cabinet Secretary, following the lifting of a moratorium that had been imposed back in 2019. The moratorium was initially put in place to facilitate the thorough mapping of Kenya’s mineral resources.

Back then, President Uhuru Kenyatta’s administration had justified the suspension, emphasizing its commitment to safeguarding the interests of both Kenyan citizens and investors in the mining sector.

“During the moratorium, the government undertook significant reforms that have continued to inspire the Mining Sector and make mining viable, and economical and achieve aspirations of contributing 10% to GDP by 2030,” Mvurya announced during the lifting of the ban.

Of the 3,000 operations stopped, Mvurya noted that the number would likely increase as the government had already profiled all illegal miners and operators.

“Enforcement has been beefed up through the Regional Mining Offices. The Ministry setting up an enforcement team in collaboration with other government agencies in fighting the vice,” Mvurya stated.

Kenya stopped issuing mining licenses in 2019 to allow the country to develop a digital database of minerals after an aerial geological survey by the Ministry of Mining.

The ministry also suspended the renewal of licenses in 2015, something that has seen some investors flee after frustrations from the government and local communities. 

The freeze in renewal of licenses and exploration saw investments in the sector drop, cutting its contribution to the country’s GDP. 

“The moratorium probably negatively impacted on the mining sector development, but once we lift it we hope all applications will be processed quickly and efficiently,” Principal Secretary for Mining Elijah Mwangi noted in April.