Mining Cabinet Secretary Najib Balala at a past function. He said new
mining rules will ensure Kenya benefits from revenue generated from
export of minerals. FILE PHOTO | SALATON NJAU |
NATION MEDIA GROUP
Mining minister Najib Balala has been at loggerheads with firms
in the extractive sector over their practice and returns to the
government. A lot has come out of the exchanges relating to the
responsible management of the country’s mineral resources.
We
do not know why some mining certificates awarded to players in the
sector were cancelled, who is saying the truth, and why there is a
reluctance to pass mining laws. Is the government, just like the
communities where minerals have been discovered, expecting too much from
this nascent sector?
A report by the Africa Centre for
Open Governance (AfriCOG), entitled ‘Mixed Blessing,’ published in
2014, says the combined revenue from mineral exports (excluding titanium
and coal) is expected to earn Kenya over $240 million (Sh23 billion)
annually. Oil and titanium revenues will boost this significantly. Since
the announcement of the first discovery of oil in March 2012, Tullow
Oil Company estimated that the oil reserves stood in excess of 600
million barrels.
The AfriCOG report calls for the
establishment of a legal framework for the exploitation of the oil and
gas deposits and the need for good governance in the sector.
Related
experience reveals that resource-rich developing countries often face
challenges in translating the benefits from such
discoveries into the improved welfare of citizens. To avoid going down
the same path, Kenya will have to adopt best practices.
INACCURATE DATA
Inaccurate
data and information on the sector can sometimes inflame tensions
between the various players, or lead to resource waste through poor
governance, lack of accountability or corruption.
Largely, the issues that have dominated public debates have been governance challenges, including the inability of the government to manage transparently revenues from the sector, especially award issues, technical capacity to supervise the operations, lack of information on mining agreements and benefits to the county governments and communities.
Largely, the issues that have dominated public debates have been governance challenges, including the inability of the government to manage transparently revenues from the sector, especially award issues, technical capacity to supervise the operations, lack of information on mining agreements and benefits to the county governments and communities.
Largely missing from the debates in the
media have been the openness in the management of revenues from the
sector, accountability and transparency in matters on technical
operations of the extractives, mineral potential of the country and the
people behind the firms awarded the rights to exploit minerals.
Kenya
believes in secrecy when it comes to the extractive industry, having
failed to sign global transparency and governance initiatives.
The
2014 Fraser Institute report on mining indicated that Kenya is the
least attractive country for investors in the extractive industry in
Africa. While Kenya is a member of the Open Government Partnership, the
country has failed to sign the Extractive Industries Transparency
Initiative (EITI) or pass an access to information law that ensures
transparency and accountability.
There is a lot of
information on mineral discoveries in several parts of the country and
their monetary worth, how soon they will be exploited and the many
companies that are being awarded tenders to exploit the resources. A
number of laws are being developed at the national and county level on
the extractive industry, thus the legal framework is still confusing.
The writer is the deputy chief executive, Media Council of Kenya
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