Mining and Blue Economy Cabinet Secretary, Ali Hassan Joho, has directed Kilimapesa Gold PTY Limited to settle its outstanding dues to the local community, the Narok County Government, and the National Government within a strict 14-day deadline. This directive comes after increasing concerns over the company’s failure to meet its financial obligations, a situation that has raised alarms in the local community.
During a visit to Lolgorian in the Trans Mara South Sub-County, CS Joho issued a stern warning to the company, underscoring the importance of adhering to both local and national regulations governing the mining sector. He made it clear that compliance with these laws is non-negotiable for all companies operating in Kenya’s mining industry. The CS also ordered a comprehensive audit of Kilimapesa Gold’s financial records, which will be carried out by the Department of Mining, with assistance from the Narok County security team led by the County Commissioner and other relevant county officials.
The purpose of this audit is to ensure that any financial irregularities are uncovered and rectified, ensuring that the company fulfills its obligations fully. Joho emphasized that any failure to comply would not be tolerated and could lead to serious consequences for the company.
As part of the instructions, Joho called on the CEO of Kilimapesa Gold, Robin McCrea, to communicate a clear and actionable plan to address the outstanding payments. The company must outline the specific steps it will take to meet its obligations within the 14-day timeframe. This move signals a new era of regulation in Kenya’s mining industry, with a clear message to investors that neglecting their financial responsibilities will no longer be tolerated.
The visit by CS Joho was accompanied by key government officials, including Narok County Governor Patrick Ntutu, Senator Ledama Olekina, Principal Secretary for Mining Elijah Mwangi, and Narok County Commissioner Kipketch Lotiatia. Together, they discussed strategies for improving the mining sector in the region, particularly with regards to local involvement and the benefits that the community should derive from mining activities.
Governor Ntutu took the opportunity to urge CS Joho to consider establishing a local licensing committee specifically for mining operations in Narok County. According to the governor, such a committee would streamline the licensing process and provide much-needed support to artisanal miners in the region. Ntutu also encouraged local residents to form cooperatives, arguing that collective business structures would better enable the community to manage and benefit from mining-related activities.
Meanwhile, Narok Senator Ledama Ole Kina voiced concerns regarding employment practices within the mining sector. He criticized the lack of job opportunities for local youth, calling the situation “shameful.” Senator Olekina stressed the need for mining companies to prioritize local hires, particularly young people, to ensure that the economic benefits of mining extend beyond the corporate level. His comments resonated with local community members who have long called for greater inclusion in the economic opportunities created by mining.
The issues raised by Joho, Ntutu, and Ole Kina highlight the growing tensions between local communities and mining companies in Kenya, particularly in regions rich in mineral resources like Narok County. There is a clear call for more inclusive and transparent practices within the mining sector, as well as a demand for greater local participation in the economic benefits derived from mining activities.
CS Joho’s firm stance on financial compliance, coupled with the calls for more local involvement and job creation, signals a potential turning point for the mining industry in Kenya. If implemented effectively, these changes could help ensure that communities hosting mining operations reap more tangible benefits, improving both the local economy and the livelihoods of residents. The next 14 days will be crucial in determining whether Kilimapesa Gold responds positively to the government’s demands or faces further scrutiny and potential penalties for non-compliance.
Kenya’s economic situation continues to be a complex and challenging one, with the country still grappling with the effects of Read more
The Institute of Engineers of Kenya (IEK) is advocating for the government to shift Kenya Power's power system control functions Read more
Margaret Kiogora has been appointed as the new Chief Executive Officer of President’s Award-Kenya (PA-K), effective November 1, 2024. Her Read more
Kenya is embarking on a major overhaul of its Foreign Policy to ensure it remains relevant to the evolving global Read more
The National Youth Service (NYS) has unveiled an exciting opportunity for fresh graduates, particularly welders and metal fabricators, with 100 Read more
President William Ruto is set to visit Juba, South Sudan, on Wednesday for a key diplomatic meeting aimed at reinforcing Read more