Kenya, Uganda enact new legislation to tighten their control of mining sector

Kenyan lawmakers are considering changes to the Mining Act of 2016, thus following in the footsteps of Uganda that passed its Mining and Minerals Act in October 2022, aiming to reform its nascent mining industry to improve the state’s control and oversight of the critical industry.
The Mining (Amendment) Bill that was tabled in the Kenyan parliament last month proposes establishment of a Mining Regulatory Authority that will — as opposed to its predecessor whose role was limited to advisory — control the “exploration, extraction, production, processing, refining, transportation, storage exportation, importation and sale of minerals.” According to the National Assembly’s Environment, Forestry, and Mining committee, the amendment will help improve efficiency in overseeing the mining industry by separating the functions of policy formulation from administration and dispute resolution.
Uganda reformed its mining sector last year with the Mining and Minerals Act which seeks to “ensure the rational, integrated and safe exploitation and use of mineral resources.” Among the changes the new mining law has initiated is the establishment of the Uganda National Mining Company, which will take up to 15% equity stake in all large and medium mining operations in the country. The law is also meant to protect the country’s minerals and the environment, as well as promote value addition and beneficiation of minerals before they are exported, which could see a rise in revenues.
These moves to reorganize the mining industry in Kenya and Uganda come amidst reports of projected growth in demand for certain minerals that will be crucial for the low-carbon economies of the future. But some players in the sector are expressing doubt that these reforms will bring meaningful gains in the two countries. Much remains to be seen, however, about how these changes will tackle the “resource curse” menace that has riddled most mining projects in Africa, including in Kenya and Uganda, where communities in mineral rich areas have been impoverished further after exploration begins.