The National Assembly’s Committee on Delegated Legislation has approved the proposed Mining (Mineral Royalty Sharing) Regulations, 2026, which outlines a new framework for sharing mining royalties. The regulations aim to ensure that local communities benefit more directly from mining activities within their areas.
In a session chaired by Vice Chairperson MP Robert Gichimu, the committee engaged Cabinet Secretary for Mining, Blue Economy, and Maritime Affairs Hassan Joho, alongside Mining Principal Secretary Harry Kimtai, to discuss the draft regulations. The discussions focused on how to effectively manage and distribute the proceeds from the country’s mineral resources.
Under the new regulations, 10% of the royalties will be allocated directly to local communities. This represents a significant increase from the previous 2% allocated to communities. The new framework provides a structured formula for the distribution of mining royalties: 70% will go to the national government, 20% to county governments, and the remaining 10% will go to local communities, where mining activities take place.
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Samburu County Woman Representative, Pauline Lenguris, emphasized the need for local populations to be the primary beneficiaries of mining royalties. “The community should be the primary beneficiary of the proceeds of mining before any other benefactors,” she said, urging the committee to prioritise the welfare of the communities that host mining operations.
Kilgoris MP Julius Sunkuli raised concerns about the process through which the regulations were developed, questioning whether adequate public participation had taken place before drafting the new framework. The committee agreed that ensuring community involvement is crucial for the success of the new regulations.
CS Joho further explained that the Cabinet had made a decisive move to ban the export of raw minerals from the country. “No mineral shall be exported in its raw form,” he stated.
The ban is intended to promote value addition within Kenya, thereby ensuring greater returns for the country’s economy. Joho stressed that by adding value to the minerals locally, the country could benefit more than by simply exporting raw materials.
Despite the positive changes, Joho raised concerns over the delays in disbursing royalties to local communities. He noted that although the revenues from mining are collected by the National Treasury, they often take too long to reach the communities.
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“It is unjust for communities to remain impoverished while proceeds from resources extracted from their land remain held at the Central Bank of Kenya,” he remarked, calling for quicker disbursement of funds to ensure communities benefit on time.
The new Mineral Royalty Sharing Regulations are anchored in Section 183(5) of the Mining Act. They include provisions for the identification and publication of beneficiary communities within 30 days of issuing a mining license.
By Obegi Malack
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