The exploitation of Kenya’s critical minerals is expected to compensate for dwindling textile and apparel exports following the expiry of the Africa Growth and Opportunity Act (Agoa), which gave the country access to the US market on duty, quota free terms.
The International Trade Centre (ITC) Executive Director expects the country to shift some of its investments to exploit the critical minerals, which are in high demand by the US as it sees them as crucial in technological advancement.
ITC is a multilateral agency under both the World Trade Organisation and the United Nations Conference on Trade and Development, which offers advisory to small businesses, policy makers and business support organisations in developing countries. Kenya has a long catalogue of critical minerals including rare earth elements, which are the most sought after by the US.
‘What Kenya has an advantage on and what will actually increase its exports is titanium and other critical minerals because there is a demand for it,’ ITC Executive Director Pamela Coke-Hamilton told this publication in an interview.
‘A lot of Kenya’s textiles and apparel were under Agoa, with that coming to an end, this marks a major shift in Kenya’s access to the US market. There are trade-offs that will happen, the demand for other products is going to fall but critical minerals are in high demand and can increase export earnings.’
Agoa lapsed at the end of September despite calls for its extension by African leaders.
The US has offered to extend the pact that allows specific goods from the continent to access its market on duty and quota free basis by up to a year, a deal on a transitory period, but is yet to move a new bill anchoring the process through Congress.
Last year, Kenya exported goods worth Sh88.8 billion to the US, mostly under the Agoa pact and a rise from Sh64.2 billion in 2023.
The Ministry of Mining, Blue Economy and Maritime Affairs lists selected mineral commodities of economic and critical importance globally. The nine key minerals include copper, coltan (columbite-tantalite), rare earth elements, niobium, graphite, lithium, chromium, nickel and uranium.
‘This catalogue aims to support the State Department of Mining and national agencies in resource planning, while also providing baseline data for investors, researchers and international development partners, contributing towards positioning Kenya as a prospective destination for sustainable mineral exploitation and development, aligned with the global transition to critical raw materials,’ the ministry says in a report.
Localities for rare earth elements include Kwale’s Mrima Hills, Ruri Hills in Homa Bay, Kiruku and Ngauri Hills in Kitui, Buru Hills in Nandi and Rwanguo in Embu.
The US has been pursuing new sources for rare earth minerals in a move aimed at reducing its reliance on China which dominates the global supply chain for the elements.
Rare earths are essential for the development of modern technologies including electronics, electric vehicles and renewable energy.
Kenya has previously successfully exploited some of its critical mineral’s deposits with Australia’s Base Titanium mining and exporting titanium ore in Kwale County for over 11-years to the end of 2024.
The firm said it exported a total of 5,208,000 tonnes of titanium through about 186,000 truckloads.
Base Titanium ceased operations in Kwale at the end of last year after the exhaustion of the ore’s reserves.
Income generated from the mining sector in 2024 was estimated at Sh223.6 billion as per data from the Kenya National Bureau of Statistics. The revenues included Sh4.5 billion from fluorspar mining and processing, Sh5.8 billion from gold processing and refining, and Sh2.5 billion from granite cutting and polishing.