Counties have received Sh2.9 billion in long-delayed mineral royalties, the National Treasury has revealed, marking a boon for the devolved administrative units and communities around mining sites.
The Treasury did not name beneficiary counties, but previous records showed that 32 mineral-rich counties were marked for royalty payouts. They include Kwale, Makueni, Taita Taveta, Homa Bay, West Pokot, Kericho, Kakamega, Elgeyo-Marakwet and Kericho among others.
‘The National Treasury disbursed 100 percent of the Sh2.9 billion allocations for mineral royalties to eligible counties. The full disbursement of the allocation reflects the government’s commitment to ensuring the timely transfer and supporting county governments in the delivery of devolved functions,’ it said on Tuesday.
‘The National Treasury continues to coordinate the transfer of these funds to eligible county governments to facilitate the equitable sharing of benefits arising from mineral resources.’
Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the mineral right.
The revenues arising from mineral royalties would then be shared among the national government, beneficiary counties, and communities. According to the Mining Act, royalties should be distributed in a way that 70 percent goes to a consolidated fund and 30 percent to affected counties. Out of the 30 percent, affected residents should get 10 percent directly.
The sharing of mineral wealth hadn’t been done over the years amid a legal gap. While a framework for sharing the earnings among national and county governments, and communities was developed, the Attorney General’s office in December 2022 advised the development of subsidiary regulations to the Mining Act to provide the mechanism for the transfer of these mineral royalties to the communities.
Data by the Mining ministry shows that Kenya’s mineral royalties rose 18.8 percent in 2025, an indication of a recovery largely driven by tighter regulation of quarries and construction materials following the exit of giant Australian miner, Base Titanium.
Royalties rebounded to Sh3.8 billion in 2025 from Sh3.2 billion in 2024, the data by the ministry showed.
Despite the recovery, the 2025 earnings remain below the recent peak in 2022 when collections stood at nearly Sh5 billion before easing to Sh3.7 billion in 2023 and dropping further to Sh3.2 billion in 2024, underscoring the lingering impact of the shutdown of the large-scale operations in Kwale.
The dip in 2024 followed the depletion of the titanium ores, which marked the end of one of the country’s most significant mining operations.
Over its 11-year run, Base Titanium exported about 5.2 million tonnes of mineral sands, including 3.89 million tonnes of ilmenite, 804,000 tonnes of rutile, and 295,000 tonnes of zircon, alongside smaller quantities of other minerals.
Its closure left a gap in royalty collections, exposing Kenya’s reliance on a handful of large-scale extractive projects. But ministry officials say the 2025 recovery reflects a deliberate policy shift to broaden revenue sources, particularly by formalising previously under-regulated quarry activities.