Muthama Firm to Pay 1 Gemstone Sales to Community

A mining firm associated with former Machakos Senator Johnson Muthama has now complied with the Mining Act as earlier directed by the Principal Secretary Harry Kimutai two months ago.

The management of Rockland Kenya Limited has formed the Community Development Agreement Committee (CDAC) in his area of operation to start prioritising development projects for the benefit of the Kasigau  community in Voi Sub County.

Taita Taveta County Mining Officer Mr Thomas Kipngeny, confirmed yesterday that the mining firm that has been operating in Kasigau Location in Voi Sub County since 1970 has formed the 14-member CDAC to facilitate payment of one percent of gross gemstone sells to Kasigau community

The formation of the CDAC comes as the government has embarked on a major crackdown on gemstone dealers who have been frustrating the formation of such committees in their areas of operations in spite of the existence of the Mining Act and Mining regulations enacted in 2016.

It also comes as mining officials noted that mining operations in the region and Kenya at large have long been characterised by a "veil of secrecy," with a high prevalence of illegal, unregulated, and opaque activities.

The officials said that has resulted in significant revenue losses for the government and minimal benefits for local communities where gemstones are found.

Speaking to The Standard in Wundanyi town yesterday, Mr Kipngeny revealed that the county commissioner, Voi MP and Kasigau MCA’s offices will each appoint a representative to the committee, which the Mining CS Hassan John will gazzette to start prioritising development projects for the benefit of the local community.

“The CDAC and the mining investor will discuss and agree on which development projects will be implemented  in the area for the benefit of Kasigau community that has been marginalized for years despite being endowed with vast mineral deposits among other natural resources ,” said the official.

In a fact- finding mission in the region, Mr Kimutai ordered Rockland Kenya Limited  to immediately form the CDAC as a measure to streamline mining activities in the region.

Muthama has been extracting gemstones inside Tsavo West National park in Kasigau Location, Voi Sub County since 1971.

The PS  noted that the delay in the formation of the CDACs continues to fuel illicit financial flows and deny the country billions of shillings on potential revenue, leading to frequent land disputes in mining areas where communities are often not compensated.

He said the mining sector contributes less than one percent to the country’s Gross Domestic Product (GDP), even though estimates suggest it could accord up to 10 percent if properly managed.

Kimutai said the immediate formation of the CDAC will compel the mining investor to annually pay one percent of gross gemstone sales to the Kasigau community for rural development.

The PS  said he would ensure all mining investors like Rockland form the CDAC and pay revenue for the benefit of the local community.

“I will implement the law and will backdate the payout since the enactment of the law in 2016.

Those failing to comply will face the full force of the law,” warned Kimutai.

“We would like to know how much Rockland has so far collected since 2016 and what is due to the local community. The money will directly go to the people and payment will be backdated,” the PS maintained.

This comes as local residents and local leaders have constantly been complaining that investors have not been supporting development in areas they operate.

“The county has challenges in on-source revenue and we have not seen any benefits from the vast mineral resources available in the region,” Ibrahim Juma, a former Kasigau MCA.

“I have a problem with Rockland, Aqua and Bridges International Mining Companies.

"The investors have not paid even a single cent to the local community for over 40 years they have been operating in the region,” added Danson Mwashako, the Wundanyi MP.

Kipngeny said  the formation of CDAC is  in line with the new Mining Act, transitioning from the old law.

The official said his office will soon issue notices for public participation forums to other companies operating in the region in a bid to form the delayed CDACs.

Mr Kipngenyi said investors are required to pay to the community and the government one percent and six percent respectively gross gemstone sales to the community and government as royalties.

“The management of Rockland told me that 30 percent of the workforce is derived from the Kasigau community and we will go to the ground to prove their claims. Formation of the CDACs is a must,” the official said.

Records of the Mining ministry indicate that about 70 percent of gemstone mining in the country is carried out in the region but the mines are only benefiting outsiders at the expense of locals, who are living in abject poverty.

Locals had constantly complained of being deprived of their mining land rights by outsiders who largely control the multi-billion shillings enterprise. In addition, the bulk of the gemstone market export originates from the county but there is little to show for it in terms of development.

The County is rich with a wide variety of minerals in the world. Gemstones like Ruby, Tsavorite, Ruby and green garnets have caused many people to migrate to the area.

Despite being home to valuable gemstones like Tsavorite, many miners operate without proper licensing, often relying on brokers to sell minerals through illicit channels.