3,000 Mining Companies Closed By Govt for Law Violations
After a four-year audit, the government announced on Wednesday the closure of 3,000 businesses, including illicit miners and mineral dealers.
Mining Cabinet Secretary Salim Mvurya declared the closure of the companies following the lifting of a moratorium imposed in 2019 to permit the mapping of the country’s mineral resources.
The administration of President Uhuru Kenyatta argued at the time that the suspension was necessary to safeguard the interests of Kenyans and investors in the mining industry.
“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.
Mvurya noted that the number of operations halted would likely increase, as the government had already profiled all illicit 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.
The decision by the Ministry of Mining to shut down the 3,000 illegal mining enterprises in Kenya was made one day after the Cabinet recommended a crackdown.
“The (cabinet) meeting declared mineral smuggling as an economic crime and approved the establishment of a special unit dedicated to compliance and enforcement against illegal mining and mineral smuggling,” a dispatch from the cabinet read in part.
ALSO READ:
- Clashes Escalate Ahead Of Ruto Kisumu Tour, Anyang Nyongo Issues Statement
- Why Azimio wants a forensic audit of 2022 presidential polls
- What the government pays to families of KDF soldiers who die in the line of duty – Duale
Mvurya added that his Ministry had conducted a comprehensive audit of all mineral rights holders to weed out non-compliant rights.
The government has revoked 1,546 licenses for failing to meet licensing requirements, according to the CS.
In 2019, Kenya ceased issuing mining licenses to develop a digital database of minerals following an aerial geological survey conducted by the Ministry of Mining.
In 2015, the ministry also suspended the renewal of licenses, causing some investors to evacuate in response to government and community frustrations.
The moratorium on renewal of licenses and exploration led to a decline in sector investments, reducing the sector’s contribution to the nation’s gross domestic product.
In April, Principal Secretary for Mining Elijah Mwangi stated, “The moratorium probably hindered the development of the mining sector, but once we lift it, we anticipate that all applications will be processed quickly and efficiently.”
3,000 Mining Companies Closed By Govt for Law Violations
