Kenya seeks more from mineral wealth

Kenya is moving to keep more value from its minerals at home, signalling a sharper shift from raw exports towards processing, refining and manufacturing as global competition for critical minerals intensifies.

President William Ruto set out the policy direction while opening the 2026 Kenya Mining Investment Conference and Expo in Nairobi, telling investors and government delegations that Kenya no longer wants to serve mainly as a supplier of unprocessed ores for industries abroad. The two-day forum brought together more than 500 participants from mining companies, financial institutions, technology providers, development partners and communities, with the government presenting the sector as a pillar of industrial growth.

The message marks a turning point for a country whose mining sector has long contributed less than 1 per cent of gross domestic product despite a broad spread of deposits. Nairobi now wants mining to support jobs, factory activity, export earnings and regional supply chains, rather than remain a narrow extractive business shaped by shipment of raw materials.

Ruto said Kenya’s minerals must be processed, refined and manufactured locally or within Africa, arguing that the continent has lost value for decades by exporting raw materials while others captured the more lucrative stages of refining and manufacturing. The push fits a wider African strategy as governments seek greater control over minerals used in electric vehicles, batteries, wind turbines, solar equipment, electronics and defence technologies.

Kenya’s case rests partly on fresh geological mapping. A national airborne geophysical survey has identified more than 970 mineral occurrences across the country, including copper, coltan, rare earth elements, niobium, graphite, lithium, chromium, nickel and uranium. Gold deposits stretch across parts of Narok, Migori, Kakamega, Turkana and Marsabit, while iron ore is concentrated in Taita Taveta and titanium along the Coast. Rare earths and niobium have placed Kwale County at the centre of investor attention.

The most closely watched project is Mrima Hill in Kwale, where the government has invited expressions of interest from companies seeking to commercialise niobium and rare earth deposits. The deposit has been valued at about KSh8.1 trillion, making it one of the most strategically important mineral prospects in the country. Niobium is used to strengthen steel for pipelines, aircraft engines and infrastructure, while rare earths are key inputs in electric motors, electronics and clean-energy equipment.

Nairobi is also advancing projects designed to show that the policy shift is already under way. An iron ore pelletisation plant in Taita Taveta, valued at about KSh11 billion, is in the final stages of construction and is expected to create roughly 3,000 jobs. A gold refinery project is moving towards completion, while the Voi Gemstone Value Addition Centre is already operating, giving artisanal and small-scale miners access to cutting, polishing, grading and market-linkage services.

Mining Cabinet Secretary Hassan Joho has said new licences will favour investors willing to establish processing capacity locally, a stance intended to discourage speculative extraction and improve returns to communities and the state. The licensing approach is also meant to strengthen transparency after earlier disputes over mineral rights and revenue sharing weakened public confidence in the sector.

The strategy comes as demand for critical minerals is projected to multiply through 2030 and 2040 as countries scale up electrification and clean-energy infrastructure. Africa holds about 30 per cent of the world’s critical mineral reserves, including cobalt, manganese, platinum and rare earth elements, yet captures only a small fraction of the value generated by clean-energy technologies. Kenya is seeking to position itself before supply chains become more firmly locked around established processing hubs in China, Europe, the United States and other markets.

The plan, however, faces practical and political tests. Export restrictions can support local industry only where power supply, transport infrastructure, water access, financing, technical skills and regulatory certainty are strong enough to make processing commercially viable. Without those foundations, investors may delay projects, reduce production or seek lower-risk jurisdictions.

Environmental and community issues are likely to shape the next stage, especially at Mrima Hill, which is both a protected forest reserve and a culturally significant Kaya site for coastal communities. Concerns over displacement, radioactive by-products, forest loss and sacred sites could complicate approvals unless handled through credible consultation, transparent benefit sharing and strict safeguards.