Government shuts down 3,000 mining companies

National NewsNews

The Kenyan government on Wednesday, October 4, announced the shutting down of 3,000 mining companies.

Most of the companies that were closed belonged to illegal miners and those that had not followed the laws and regulations in the mining sector.

Mining Cabinet Secretary Salim Mvurya announced the closing of the mining companies and at the same time lifted the ban imposed in 2019.

The government had suspended issuing mining licenses in 2019, to allow the ministry to develop a digital database of minerals.

Mining CS Salim Mvurya (centre) while making the announcement about the  closure of mining companies on October 4, 2023. Photo: Salim Mvurya
Mining CS Salim Mvurya (centre) while making the announcement about the closure of mining companies on October 4, 2023. Photo: Salim Mvurya

“During the moratorium, the government undertook significant reforms that ​have continued to inspire the Mining Sector and make mining viable,” said Mvurya.

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The Mining CS added that more mining companies are targeted for closure as the government has already identified illegal miners operating in different parts of the country. 

“The Ministry is setting up an enforcement team in collaboration with other government agencies in fighting illegal mining,” Mvurya stated.

At the same time, Mvurya noted that the decision to ban the 3000 companies was approved by President William Ruto’s cabinet on Tuesday, October 3.

READ ALSO: At least nine (9) killed in Zimbabwe gold mine collapse

“The (cabinet) meeting declared mineral smuggling as an economic crime and approved the establishment of a special unit dedicated to compliance and enforcement against illegal mining and mineral smuggling,” read part of a Cabinet report.

Mvurya further explained that the government had undertaken an audit of all mineral rights holders. 

“The government has revoked 1546 licenses that do not meet the conditions of licensing,” Mvurya stated.

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