Community and human rights advocates in Kenya are wary of a new mining bill that is on the verge of being passed into law.
Kenya’s national assembly has voted to overhaul its 74-year-old colonial mining act, as it aims to ramp up the country’s fledgling sector.
But Melba Wasunna, an adviser on extractives and human rights at the Katiba Institute, an organisation that studies Kenya’s new constitution and its implementation, cites a 2006 UN study that said oil, gas and mining industries account for nearly two-thirds of global violations of human rights, environmental laws and international labour standards.
“We just don’t want that statistic to prevail in Kenya because, as you know, Africa has a record for the resource curse, civil wars and everything else that comes along with it,” she said.
The changes to the act aim to attract international mining companies, which have been eager to invest in the largely unexplored region, but unwilling to enter a market with uncertain regulations. The bill includes clear financial and licensing arrangements, environmental and social provisions, as well as an advisory minerals rights board.
The mining ministry’s public communications division says the “legislation needed to be repealed to enact a law that will address the current needs of the mining sector in Kenya”, following the discovery of deposits of minerals, coal, oil and gas.
Kenya is east Africa’s largest economy, but its resources industry is relatively undeveloped compared with its neighbour Tanzania, which is one of Africa’s largest gold producers (pdf). However, that situation is expected to change dramatically in light of the country’s recently discovered deposits.
Mining companies, including Africa Barrick Gold – a subsidiary of one of the world’s largest gold miners, Barrick Gold – are already exploring for minerals in Kenya. Base Resources – the first major, direct foreign investor in Kenya’s mining sector – exported its first shipment of mineral sands from its mine in Kwale county this year.
However, some local communities say they’ve been left out of the consultation process to change the law. Paul Oling’a, a community mining advocate in resource-rich Taita Taveta county, is unhappy with the distribution of mining wealth. “It’s not fair because the investor gives virtually all the revenue to the national government,” he said.
He fears revenues will be funnelled away from local communities. “As it stands now, the areas where the mineral deposits are found are the most underdeveloped. Those issues won’t improve unless there is a fairer split of the revenue.”
He is also worried about a provision in the law enabling the government to compulsorily acquire land for exploration and mining. “A lot of the minerals lie in community land. Most of the community does not want to see their land go. We fear the community won’t be compensated enough for all that wealth in the ground.”
The mining ministry maintains that the wealth will flow to all Kenyans, saying: “The enactment of the new mining act will also ensure the creation of key institutions needed for the realisation of Kenya’s mining potential for the benefit of all: national government, counties and communities living within the mining areas.”
Wasunna says while it’s not perfect, the new regulatory framework is a step in the right direction. “We now have an official road map, whereas before it was just vacant and nobody knew where it would go or what would happen; it was just shooting in the dark. It’s definitely a good thing and much awaited, but at the same time – like any other bill or any other act – it has challenges.”
She is confident that a well-managed mining industry will help lift Kenya’s standard of living. “One of the greatest achievements for me would be the elevation of previously marginalised communities, as equal peers in the political, social and economic realms of the country.”
George Jaramba, secretary general of the Kwale Human Rights network, is not satisfied with the industry framework, but hopes that, as the sector develops, community and county concerns will be addressed. “With time, even though it’s not as good as the community had expected, there is room for amendments. Gradually it might just turn around to address the concerns of the community.”
Jaramba believes a strong, well-managed mining sector could transform the region for the better. “There would be adequate schools, adequate healthcare facilities, there would be better roads, there would be electricity, there would be flowing water everywhere … the place would be a commercial hub.”
However, if managed badly, the results could be crippling, he says. “It should be handled carefully, because if not, it might end up being a curse instead of a blessing.”
