Kenya woos American mining investors with new incentives

Kenya is ripe and open for investments in the mining sector, Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho has said

Speaking when he officially opened the one-day US-Kenya Critical Supply Chains Conference in Nairobi last week, the CS told American investors that Kenya is endowed with various minerals and has put up a relevant regulatory framework to spur investment.

He said the country is ready to unlock its mineral potential and also be a participant in various aspects of its natural resources.

“Kenya is blessed, totally endowed with untapped minerals. The choice we have as a government is either to continue to procrastinate, talk about how wealthy we are and yet so poor or take action,” said Joho.

“The government has decided to take action. In terms of policy framework, we have reviewed our laws because one of the greatest teething problems of the period was how we handle communities, how they will benefit after being unfairly exploited in the past.”

The CS said Kenya has invested heavily in infrastructure, including port, expansion of Standard Gauge Railway (SGR) and revived Meter Gauge Railways (MGR) because they touch on how the country can positively exploit minerals and value addition.

“The government will create an enabling environment. The President has announced a 10,000 megawatt power supply programme, and we have reserved it for the mineral sector at the barest minimum of 30 per cent because we have seen the opportunity,” said Joho.

He explained that the State is already talking to partners to invest in exploiting its rare earth minerals at Mrima Hills in Kwale County and to use some like iron ore to manufacture steel and transition from being a net importer to a net exporter of steel.

To achieve this, he said partnership with America, which will result in a win-win situation, is necessary.

“We have learnt from the mistakes others have made. We have perfected what needs to be perfected, and the message of today is that Kenya is ripe and ready for investment, and the supportive infrastructure is being built. Minerals are likely to be the drivers of turning around our economy,” said Joho.

Organised by the US Embassy in Kenya and the American Chamber of Commerce, the forum aimed at connecting US capital and expertise with Kenyan critical mineral reserves, including rare earth elements and minerals that are essential components in electric vehicle motors, renewable energy systems, aerospace technologies and national defence platforms.

Infrastructure linkages

The event, which brought together leaders from government, business and academia, had panel discussions on topics like infrastructure linkages - from mines to market, investing in Kenya’s mining future and industry-academia collaboration: building a skilled workforce for the supply chain economy.

Others were unlocking Kenya’s potential in critical minerals for sustainable economic growth and strengthening transport and logistics infrastructure to power Kenya’s supply chain competitiveness.  

US Deputy Secretary of State Christopher Landau encouraged American companies to invest in Kenya due to the country’s transparency.

“So, again, I welcome the kind of transparency and openness that working in a democracy like Kenya really has. And sometimes, you know you’re less encouraged by the rule of law, it is what allows all of this to happen,” said Landau, who said he looks forward to seeing a win-win situation between Kenya and the US.

“I think it’s a golden age that we’ll see both our countries benefit massively, and I’m very proud to be part of that. I think all of us in this room can feel like we are here at a point in time when history is being made. We’ll look back and say, wow, people weren’t even talking about some of these issues just a year or two years ago.”

AmCham President Angela Nganga said the global supply chains are being reimagined as disruptions become inevitable.

She stated that the global demand for critical minerals has surged as a result of the transition to clean energy and green technologies.

“This shift in global demand creates an opportunity for Kenya to position itself as a reliable supplier within regional and international markets,” said Nganga.

“Kenya’s strategic position in East Africa further enhances its great potential with access to major shipping ports of Mombasa, SGR and nourishing regional economic blocks; it is well-positioned to serve as a mineral hub for the broader East Africa region.”

AmCham Chief Executive Maxwell Okello observed that supply chains involve jobs for people, competitiveness of industries and whether the economy will stand when the next global economic shocks come calling.