The Government has streamlined the mining sector to be the country’s key driver of the economy, President William Ruto has said.
Speaking after opening the Voi Gemstone Value Addition and Marketing Centre, in Taita Taveta County on Friday, President Ruto noted that a raft of reforms have been introduced to revive the sector.
He said the revival of the sector remains key to accelerating the processing of construction and industrial minerals, thus contributing to the economic growth of the country.
“Our ambition is to transform the contribution of the mining sector and raise it to at least 10 per cent of Gross Domestic Product (GDP) by implementing several measures,” said President Ruto.
The President argued that the transformation of the mining and minerals was on the top gear with a view to increasing revenues from the sector.
“After establishing an accurate, transparent and secure inventory of our country’s endowments, we have moved to the next step of developing a robust mineral development and value addition policy and regulatory framework,” said Ruto.
Present were MPs Khamis Chome (Voi), Lydia Haika (Women Rep), Danson Mwashako (Wundanyi), Peter Shake (Mwatate), John Bwire (Taveta) Wahome Wamatinga (Nyeri Senator), Daniel Nanok (Turkana West), Danson Mungatana (Senator Tana River), Joash Nyamoko (North Mugirango) and Caroli Omondi (Suba South).
The Head of State said the move has led to a significant increase in the sector’s performance and economic contribution.
He noted that in 2019, the revenues from mineral royalties were Sh1.9 billion, saying by June this year. the figure had risen to KSh3.8 billion.
He added that the revenues were expected to reach Sh15 billion by the end of the year, and Ksh50 billion in the medium-term.
“This is a result of the lifting of the moratorium, which suspended mining activity and has led to a spike in applications for prospecting and mining licences and permits,” said President Ruto.
At the same time, President Ruto said the Government has reformed artisanal mining in the country.
He regretted that artisanal mining had been criminalized in the past, noting that there was a policy change to regard artisanal mining like any other legal business.
“We’ve come up with a policy change to ensure all artisanal miners in the country are licensed and Organized to do their work,” said the President.
He said the Government has also taken measures to promote greater activity in the sector by undertaking feasibility studies at public expense to de-risk investment with respect to key strategic minerals.
“The level of investment that our revamped mining sector has attracted is estimated at Sh187 billion, with the potential to create 32,786 direct jobs,” said Dr Ruto.
Meanwhile, President Ruto said the Government has reduced the budget for travel up to a tune of Sh 11 billion as part of cost-cutting measures.
He said the reduction affects the Executive, Judiciary and the legislature.
Mining, Blue Economy and Maritime Affairs Salim Mvurya said the Government was committed to inspiring the economy through mining.
He said the country has enormous mineral resources that should be exploited to increase revenues and create employment opportunities.
Mr Mvurya warned of stern action against those who have not paid royalties.
Taita Taveta Governor Andrew Mwadime said he was ready to work with the Government in implementing development projects for the people.
“We are ready to work with the Government for the sake of development,” said Governor Mwadime.