Base Titanium workers explores for titanium in Kenya’s Kwale County.
Under the Mining Act, 2016, the national government gets 70 per cent of
mineral revenues, the counties with mines get 20 per cent and host
communities 10 per cent. PHOTO FILE | NATION
Mining Cabinet Secretary Dan Kazungu said the Mineral Royalty
Fund will be created in the next financial year to promote
accountability in sharing of mining revenues between the national
government, county governments and communities around mining fields.
Currently, such monies are remitted to the Consolidated Fund.
Under
the Mining Act, 2016, the national government gets 70 per cent of
mineral revenues, the counties with mines get 20 per cent and host
communities 10 per cent.
In Uganda, 80 per cent of the
revenue goes to the government, 17 per cent to mineral producing
districts and 3 per cent to the landowners or occupants of mining areas.
In
Rwanda, 10 per cent of mining royalties are given to the Local
Administrative Entities Development Agency for development projects
selected by people living near mines.
Electricity generating
The
Energy Bill of 2017 before the Kenyan National Assembly proposes that
monies paid by electricity generating firms be shared between the local
community, the county government and the national government in the
ratio 5:20:75.
Besides royalties, Kenya mining firms
will also be required to allocate 1 per cent of sales revenues of
minerals like gold to the local communities. National Assembly Majority
Leader Aden Duale said the Bill seeks to consolidate the laws relating
to energy and align the legal and regulatory framework of the sector
with the Constitution.
“It will do this by setting out
with clarity the specific roles of national and county governments in
relation to energy,” Mr Duale said.
The Bill seeks to repeal the Energy Act, 2006 and Geothermal Resources Act, 1982.
The
oil and gas proceeds will be shared between the national government and
the firm in three bands – 50:50, 65:35 and 75:25 – depending on the
cost of extraction and the revenues received.
Companies
holding valid mining leases and special mining leases granted under the
repealed Mining Act of 1940 will be required to sign development
agreements with the communities within 18 months.
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