Kenya is accelerating a shift toward value addition of local mineral resources as it seeks to unlock billions from its natural extractives sector in coming years, underpinned by reforms to end raw exports.
Speaking during the ongoing two-day Kenya Mining Investment Conference in Nairobi, President William Ruto said the government is restructuring the sector to ensure the country captures more value, noting that reliance on raw exports in the past has limited economic gains.
The pronouncement comes at a time when the country is seeking to unlock a largely underdeveloped extractives sector that has for decades contributed less than one percent to the country’s gross domestic product (GDP) despite evidence of significant mineral deposits.
‘The time has come to take the next decisive steps. For far too long, the abundant mineral wealth we possess has generated prosperity for others, while its true owners, our citizens, have derived only limited benefit,’ said Ruto.
‘We will process our minerals here. We will refine them here. We will manufacture them here.’
His remarks come against the backdrop of rising global demand for minerals such as lithium, cobalt, nickel and other rare earth elements critical in manufacturing batteries, electric vehicles, and renewable energy infrastructure.
According to the International Energy Agency, demand for these minerals is projected to triple by 2030 and quadruple a decade later, creating a window for mineral-rich countries to reposition themselves within global supply chains.
Africa holds an estimated 30 percent of the world’s critical mineral reserves, but captures less than one percent of the value generated.
President Ruto said the National Airborne Geophysical Survey identified more than 970 mineral occurrences across the country, providing the most detailed mapping yet of the country’s mineral potential.
Gold deposits stretch across the western belt from Narok through Migori, Kakamega, Turkana and Marsabit, while titanium is concentrated along the coast as iron ore deposits are found in Taita Taveta.
Rare earth elements and niobium have been identified in Kwale, while gemstones are spread across central and coastal regions, with additional deposits of manganese, copper and chromite detected in northern and eastern counties.
The State is currently undertaking a series of policy interventions aimed at attracting investment and strengthening oversight in the sector, including reforms under the Mining Act which replaced outdated legislation and introduced clearer licensing frameworks.
Kenya has also established the National Mining Corporation to take equity stakes in strategic projects and facilitate partnerships between government and private investors.
Last September, Mining Cabinet Secretary Hassan Joho published a gazette notice disclosing that billionaire industrialist Narendra Raval had applied for a licence to prospect for iron ore in Taita Taveta County, as he sought to become the first producer of primary steel in the region.
Earlier in 2024, Mr Raval’s Devki Steel Mills had commissioned a Sh11 billion steel plant on the proposed prospecting area.
Kenya’s push to transition from raw exports reflects a wider continental shift towards retaining more value from natural resources, with governments increasingly seeking to reduce dependence on exporting unprocessed commodities.
President Ruto has signalled plans for regional collaboration, including last week’s discussions with Uganda on establishing a joint refinery to process oil resources within East Africa.
‘The decisions we take now will determine whether this abundance builds African industries and creates jobs here, or continues to benefit others beyond our shores,’ Ruto said.
The strategy aligns with broader efforts under the African Continental Free Trade Area (AfCFTA) to integrate markets and strengthen intra-African trade in goods and services.