Posted on :Thursday , 21st July 2016
Lobbying for influential positions has started in earnest in the new legal order that will govern mining.
The new mining law replaced some laws which were enacted in 1940s just after World War II.
The law creates the crucial Mining Rights Board that will vet applications for licenses as well as a new parastatal, the National Mining Corporation.
It also creates Minerals and Metals Commodities Exchange; a parastatal that will dealing with trading of minerals.
All these bodies will require not only boards but secretariats as well. These are the jobs many are eying.
Mining Cabinet Secretary Dan Kazungu said Kenya minerals are worth trillions of shillings and the new law will help the country reap handsomely from the minerals.
The minister said he hopes to have the board by the end of July.
The board will arguably be the most powerful body hence the rush to have it set up.
It will be advising the mining CS on who to grant or deny mineral rights.
The Nation has learnt that investors in mining are pushing to be on the boards.
TNA and URP allied members also want in on these boards. The minister admitted that lobbying has been on going.
"Lobbying for jobs is not illegal. It is okay for people to express interest. The bottom line is that we want to hire the best man-power Kenya can offer. We want people who can actualise the vision of this ministry," he said.
The President is expected to appoint the chairman while Council of Governors will nominate a representative as three other persons with relevant qualifications will also be nominated.
At the National Mining Corporation, the President shall appoint the chairman in addition to three representatives from other related ministries.
Mr Kazungu said the ministry is keen to have all, three bodies running by end of the year.
Gemstones dealer Senator Johnstone Muthama said the sector looks forward to working with those who will be appointed.
"The problem we have in Kenya is not lack of people to appoint. Many are qualified for the jobs, but Kenyans believe in short cuts and want to make quick money," he said.
Mr Muthama predicted that the changes anticipated in the Act may not come to reality if those tasked in delivering the vision start engaging in corruption.
The ministry expects to hit Sh1.6 billion in mining royalties up from Sh1.35billion last year.
The ministry also estimates the reforms will increase annual revenue to Sh300 billion by 2030.
"This is the only sector that has wealth worth trillions of shillings, this Act will allow every Kenyan to participate in this process," the CS said.
Mr Kazungu said the ministry will carry aerial survey to map out minerals following a budgetary allocation of Sh3 billion in the 2016-2017 financial year.
He said an estimated Sh9 billion will be required to execute the aerial survey, which will be done in phases considering budgetary limitations.
The first phase of the study will be carried over the Coastal, Eastern and Western blocks where among other minerals, titanium, gemstones and gold are prevalent. The old mining act illegalised small scale miners.
"It was illegal for small scale miners to engage in the trade but now that is possible under the new law," said Mr Kazungu.
Mr Kazungu said the mining industry if well managed has potential to make double digit contribution to the economy unlike now when it is making a paltry 0.8 per cent.