- Muthama also used to the opportunity to call for friendly levies imposed on miners by the government.
- The meeting was themed “Beyond 2030: East Africa’s Geo-Resources Portfolio for Economic Development and Energy Transitions.
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The mining sector has the potential to contribute from four to 10 per cent to the country’s gross domestic product if the untapped mineral potential is fully exploited, Parliamentary Service Commissioner Johnstone Muthama has said.
Muthama said the sector currently contributes only one per cent yearly.
He said the sector presents a significant opportunity for Kenya’s economic growth as a result of generating new revenue streams to support government fiscal policy.
“Over the years, the government has not been so keen on the mining sector and that is why as a country, we have not analysed our value chains,” Muthama said.
Speaking during the third edition of the Geo-East African conference in Nairobi, the commissioner blamed the past administration saying it has focused on other priorities than this sector.
“The mining sector has remained under-exploited, as a country we have made good strides in this area creating a conducive environment to invest in the extractives but there is still a lot to be done if Kenya has to enjoy the full potential,” he stated.
The country, he said, currently has 970 minerals which have been surveyed.
Muthama at the same time urged the government to engage geologists who he said are trained but remain neglected.
The meeting was themed “Beyond 2030: East Africa’s Geo-Resources Portfolio for Economic Development and Energy Transitions.
It brought together chairpersons, directors and CEOs from various state agencies, scholars in different fields and geologists.
The commissioner at the same time urged the government to adopt an open-door policy to make the country a mineral giant in the continent.
He said this can be made possible through benchmarking to countries like Israel and Thailand organized through Kenya Chamber of Mines including government officials from the Ministry of Mining.
Muthama also used the opportunity to call for friendly levies imposed on miners by the government.
He proposed that the Ministry of Mining reduce the proposed six per cent royalty on rough gemstones to not more than one per cent and that miners be given 120 days for royalty payment.
“Do away with one per cent development levy and instead deduct it from the paid royalty,” he said.
To eliminate the bureaucracy in the process of clearing the exports, he has suggested that clearance be done within 12 hours.