KENYA risks missing out on billions in investment, thousands of jobs and export earnings unless the government urgently reforms the country's mineral licensing system, mining engineers have warned.
This comes as the sector continues to struggle after Australian company-Base Titanium wound up its titanium ore mining operations in Kwale in December 2024, ending what was Kenya’s leading mineral export earner for over a decade.
Last year, the mining sector recorded a decline in production, with the value of mineral production declining from Sh25.5 billion in 2024 to Sh20.3 billion in 2025, the Economic Survey 2026 indicates.
Royalties and license fee earnings nevertheless grew from Sh3.3 billion in 2023-24 to Sh3.8 billion in 2024-25, but sector players have cited challenges in the 2025-26 financial year.
While successive governments have positioned mining as one of the country's next economic frontiers, capable of driving industrialisation and reducing dependence on traditional sectors such as agriculture and tourism, industry experts say administrative failures are hurting the sector.
The Mining Engineers Society of Kenya (MESK) says delays, inconsistencies and uncertainty surrounding the administration of mineral rights are Kenya's biggest obstacle to unlocking the country's vast mineral wealth, despite Kenya having one of the region's most progressive mining laws.
According to the society, investors continue to face lengthy delays in obtaining prospecting and mining licences through the government's online cadastre system, with some applications remaining unresolved for years despite meeting all legal requirements.
At the same time, other applications are reportedly processed within months, raising concerns over transparency, consistency and predictability in the licensing process.
"Kenya has significant mineral potential, a modern legal framework and growing investor interest. Yet one fundamental obstacle continues to undermine this ambition, the administration of mineral rights through the online cadastre and licensing system," said Mining Engineers Society of Kenya chairman Joseph Komu.
Industry players argue that certainty is one of the most important considerations for mining investors, because exploration projects require substantial upfront capital and often take years before generating any returns.
“Without predictable licensing timelines, financial institutions become reluctant to finance projects while international investors increasingly shift their capital to competing jurisdictions with more efficient regulatory systems,” Komu said yesterday.
The engineers note that the Mining Act, 2016 established a comprehensive legal framework with clearly defined procedures, timelines and technical standards governing the issuance of mineral rights.
However, they argue that implementation has failed to match the intentions of the legislation.
Also affected are artisanal and small-scale miners who are said to have been left out of the formal licensing framework.
Artisanal mining remains a major source of livelihoods across mineral-rich counties including Migori, Kakamega, Taita Taveta, Kwale, Turkana and West Pokot.
Failure to integrate these operators into the formal economy limits access to financing, technology, training and occupational safety while denying government significant tax revenues.
The engineers have also questioned the increasing number of government applications occupying large sections of prospective mineral ground within the online cadastre.
They argue that under the Mining Act, the government's primary responsibility is to regulate the industry rather than compete directly for mineral rights.
Some of the government-held applications are reportedly larger than the maximum acreage permitted under the law, effectively locking out private investors from commercially promising exploration areas.
"This creates an uncomfortable paradox. The same government seeking to attract mining investment is simultaneously restricting access to mineral opportunities," Komu said.
Another growing concern involves speculative acquisition of mining licences.
Under international mining practice, a mining licence is normally issued only after extensive geological exploration, drilling, laboratory analysis and feasibility studies have confirmed the commercial viability of a mineral deposit.
However, the engineers say some licence holders are obtaining mining licences before undertaking adequate exploration, only to return later to basic prospecting work.
They warn that such practices blur the legal distinction between prospecting and mining rights, weaken investor confidence and undermine the integrity of Kenya's licensing regime.
The government has been implementing reforms in the sector to push up mining contribution to the GPD from a paltry one per cent to at least 10 per cent by 2030, with a value of at least Sh1.6 trillion.
This includes the enactment of the Mining Act 2016, described as a progressive, transparent and investor-friendly legal framework that replaced colonial-era 1940 legislation.
