Introduction: Why Mining Licences Matter
Kenya’s mineral sector is gaining attention from both local and international investors. From industrial minerals like limestone and gypsum to precious metals like gold and rare earths, the opportunities are vast. But before exploration or mining can begin, investors must comply with Kenya’s legal and regulatory framework.
The Mining Act, 2016, supported by regulations and oversight from the Ministry of Petroleum and Mining, sets out clear requirements for obtaining exploration and mining licences. For many businesses, navigating this process is complex and time-consuming. This guide breaks down the steps to help investors and companies avoid costly delays.
The Legal Framework: Mining Act, 2016
The Mining Act, 2016 is the principal law governing exploration and mining activities in Kenya. Its objectives include:
• Ensuring orderly development of mineral resources.
• Promoting transparency and accountability in mineral rights allocation.
• Encouraging community participation and local content.
The Cabinet Secretary for Petroleum and Mining and the Mineral Rights Board (MRB)play central roles in reviewing and granting applications.
Other relevant laws include:
• Environmental Management and Coordination Act (EMCA), 1999 — administered by NEMA for environmental approvals.
• Land Act, 2012 — applicable where mining occurs on private or community land.
• Local Content Regulations — ensuring communities benefit from mining projects.
Step 1: Determine the Right Licence
The Mining Act recognizes several categories of licences, depending on the stage and scope of activities:
1. Prospecting Licence – Allows sampling and initial testing for minerals.
2. Exploration Licence – Permits systematic evaluation of mineral deposits (up to 3 years, renewable).
3. Retention Licence – Granted when a mineral deposit is proven but extraction is not yet viable.
4. Mining Licence / Lease – Authorizes large-scale commercial extraction (typically 25 years).
5. Artisanal Mining Permit – For small-scale miners under simplified procedures.
Step 2: Application Submission
Applications are submitted to the Ministry of Petroleum and Mining via the Mining Cadastre Portal, which digitizes the licensing process. Key requirements often include:
• Company incorporation documents (under the Companies Act, 2015).
• Financial and technical capability statements.
• Work programme and budget for proposed activities.
• Maps and coordinates of the area.
For foreign investors, compliance with local shareholding requirements may apply under Kenyan law.
Step 3: Environmental Approvals (NEMA)
Before certain licences can be granted, applicants must demonstrate compliance with environmental laws. This includes:
• Environmental Impact Assessment (EIA) — required under section 58 EMCA, 1999.
• Approval from the National Environment Management Authority (NEMA).
• Environmental Management Plans (EMPs) for ongoing projects.
Failure to comply with NEMA requirements can lead to licence revocation.
Step 4: Community Benefit Agreements
For large-scale mining operations, licence holders are required to enter into Community Development Agreements (CDAs) under section 109 of the Mining Act, 2016. These agreements ensure that local communities benefit through:
• Infrastructure development (schools, hospitals, water).
• Employment and training opportunities.
• Revenue-sharing models.
This step is critical to avoid community conflicts, which are a common source of project delays.
Step 5: Approval by the Mineral Rights Board (MRB)
The Mineral Rights Board reviews applications and makes recommendations to the Cabinet Secretary. Considerations include:
• Financial and technical capacity of the applicant.
• Compliance with local content obligations.
• Environmental and social obligations.
Only upon MRB approval can the licence be formally granted.
Step 6: Licence Grant & Compliance Obligations
Once a licence is issued, holders must comply with ongoing obligations such as:
• Annual reporting to the Ministry.
• Payment of royalties under section 183 of the Mining Act, 2016.
• Compliance with safety, health, and labour laws.
• Respecting landowner and community rights.
Failure to meet these obligations can result in suspension or revocation.
Common Pitfalls & How to Avoid Them
• Incomplete Applications: Missing documents cause delays.
• Ignoring NEMA Requirements: Environmental compliance is non-negotiable.
• Community Conflicts: Failing to negotiate fair benefit-sharing agreements often leads to litigation.
• Poor Legal Advice: Many investors rely on brokers instead of licensed advocates, resulting in fraudulent deals.
Conclusion & CTA
Securing a mining licence in Kenya requires navigating multiple legal and regulatory steps, from cadastre applications to environmental approvals and community agreements. While the framework is investor-friendly, non-compliance can lead to costly setbacks.
👉 At Miano Njogu Advocates, we have successfully secured mining licences for local and international clients. We guide investors through every step — from NEMA approvals to joint venture agreements. Contact us today to streamline your mining investment in Kenya.