Kenya could be losing billions of shillings worth of investment after the Kenya Chamber of Mines and the Institute of Engineers of Kenya revealed the lack of credible geological data to convince the investors.
Sector leaders exposed a structural flaw that has subtly hampered Kenya’s mining aspirations for decades at a mining conference hosted by the Institution of Engineers of Kenya (IEK).
“Investors do not invest in stories or possibilities; they invest on structured, systematic, engineering-backed geological data. That is what Kenya lacks,” said the IEK president, Shammah Kiteme as quoted by The Star.
The disparity, according to Kiteme, explains why Kenya’s mining industry still accounts for only 1% of the country’s GDP, significantly below both its potential and the government’s goal of increasing it to 3% by 2028.
Kenya intends to raise its mining sector’s GDP contribution to 10% by 2030, according to the Chamber of Mines.
“Yes, we know minerals exist in places like Mrima Hills, Western Kenya and other regions. But knowing they exist is not enough. Investors want to know grade, volume, depth, extraction costs, environmental risks and timelines. Without that, capital will not come.”
According to Brian Simiyu, CEO of the Kenya Chamber of Mines, the mining sector in Kenya is dominated by artisanal and small-scale miners, many of whom work informally and have limited capital, making them vulnerable to environmental and safety hazards due to the lack of vital data.
Even so, there are still very few large-scale, industrial miners who generate billions of dollars in investment, cutting-edge technology, and long-term employment.
“And yes, we have the mineral resources, but we now need to move to what I would call the proven stage. The proven stage is the investor-grade information. The general information for the public is, yes, Kenya has minerals, but investors don’t go with that information,” said Simiyu.
“They want a more structured and systematic view, which is really based on engineering knowledge. And that’s why the engineers have come in handy to say, hey, let us look at mining.’ We have the resources.”
