KENYAN MINING SECTOR UNDERGOING TRANSFORMATION

By Dr Nicolaas C Steenkamp for African Mining, incorporating Mining Mirror

KENYAN MINING SECTOR UNDERGOING TRANSFORMATION

The Kenyan mining sector is undergoing a profound transformation. From the lifting of a multi-year licensing moratorium to the discovery of strategic “green” minerals and the transition of its largest industrial mine into a closure phase, the landscape is shifting.

Geological setting

Kenya’s geology is mainly comprised of Archean cratonic fragments, Proterozoic mobile belts and much younger volcanic and sedimentary successions. This diversity is the primary driver for the wide variety of mineralisation styles found across the country.

In the western part of the country, the Nyanza Craton represents the northern extension of the Tanzania Craton. This Archean terrane is composed of two primary systems: the Nyanzian and the Kavirondian. The Nyanzian System (2,500Ma) is predominantly composed of acid to basic volcanic rocks, including basalts, rhyolites and tuffs, interspersed with banded iron formations (BIFs).

It is the primary host for gold mineralisation in western Kenya. The Kavirondian System is resting unconformably on the Nyanzian. This system consists of coarse-grained sediments, conglomerates, sandstones and mudstones derived from the erosion of the Nyanzian rocks. This “Greenstone Belt” environment is geologically analogous to the prolific gold-producing regions.

Covering the central and eastern portions of the country, the Mozambique Belt is a major crustal feature formed during the Pan-African orogeny (600Ma). It is characterised by high-grade metamorphic rocks such as gneisses, schists and marbles. This belt is the source of Kenya’s legendary gemstone wealth, including ruby, tsavorite garnet and sapphire, as well as industrial minerals like kyanite and graphite.

Along the coastal margin and in the northeast, we find Palaeozoic to Mesozoic sedimentary rocks, including the Duruma Series (Karoo equivalent). These units are critical for the country’s heavy mineral sand deposits. Meanwhile, the Cenozoic era brought the formation of the Great Rift Valley, characterised by extensive alkaline volcanism and the deposition of evaporites, most notably the trona (soda ash) deposits of Lake Magadi.

Current operations and exploration highlights

The Kenyan mining story in 2026 is one of “changing of the guard.” While long-standing operations are evolving, new projects are moving toward the construction phase.

The most significant development in the gold sector is Shanta Gold’s West Kenya Project. Located within the Liranda Corridor, this project targets high-grade resources in the Isulu and Bushiangala deposits. As of early 2026, Shanta has progressed through its feasibility studies and is currently navigating the project financing and Resettlement Action Plan (RAP) phases. The grades identified here exceed 10g/t Au, making it one of the highest-grade underdeveloped gold projects in Africa.

Dr Nicolaas C Steenkamp is an independent consultant, specialising in geological, geotechnical and geometallurgical projects and mining project management. He has over two decades of industry experience with global exposure. Supplied by Dr Nicolaas C Steenkamp

The government has launched a massive formalisation drive in Kakamega County. By moving nearly a million artisanal and small-scale miners (ASM) into regulated co-operatives, Kenya aims to curb the “leaking” of gold across borders and ensure safer, more environmentally sound extraction.

In early 2024, there was an announcement of significant Coltan (columbite-tantalite) discoveries in Embu, Samburu, and several other counties. The Kenyan government has established regional testing laboratories to decentralise sample analysis, aiming to position Kenya as a reliable alternative source for these critical minerals, which are essential for the global electronics and green energy sectors.

A bittersweet milestone was reached in December 2024 when Base Titanium ceased mining at its Kwale operation due to ore depletion. The focus has shifted entirely to Mine Closure and Rehabilitation. Base Titanium’s legacy is often cited as the gold standard for mining in Kenya; the company’s transparent ESG reporting and sophisticated rehabilitation efforts have set a high bar for future investors. The government is currently evaluating Post-Mining Land Use (PMLU) options for the site, which may include agricultural or industrial parks.

Mrima Hill remains a site of significant geological interest. Known for its high-grade niobium and rare earth elements (REE) mineralisation, the project has historically faced regulatory hurdles. However, with the current global appetite for strategic minerals, there is renewed momentum to unlock this deposit, which is hosted within a carbonatite complex.

The regulatory environment

For years, the Kenyan mining sector was hamstrung by a moratorium on new licences issued in 2019. The lifting of this freeze in late 2023 was the catalyst for the current surge in activity.

The legal framework is governed by the Mining Act 2016, which modernised the sector by introducing the online mining cadastre that provides transparency in licence applications and prevents overlapping claims. The government retains a 10% free-carried interest in large-scale mining projects. Large-scale miners must list at least 20% of their equity on the Nairobi Securities Exchange within three years of production, a move designed to ensure local benefit, though one that remains a point of negotiation for capital-intensive projects.

The proposed “14-day rule” requires the National Treasury to remit the 30% share (20% to County Governments and 10% to local communities) within two weeks of receipt. This addresses a long-standing grievance where mining communities saw wealth leaving their land with no visible local reinvestment.

Ease of operating

Operating in Kenya offers a unique mix of world-class infrastructure and “teething” regulatory processes. Unlike many of its neighbours, Kenya boasts a robust infrastructure backbone. The Standard Gauge Railway (SGR) and an expanding road network facilitate the movement of equipment and mineral concentrates.

Kenya is a global leader in Geothermal Energy. For mining companies, the ability to tap into a green, stable, and relatively cost-effective power grid is a major advantage in meeting global “Scope 2” emission targets.

The transition from the Mineral Rights Board to an independent Mining Regulatory Authority is currently underway. This body is intended to act as a “one-stop shop,” reducing the bureaucratic friction that has historically slowed down the permitting process.

Outlook

Kenya’s goal is to increase the mining sector’s contribution to GDP. The “Vision 2030” plan is being updated to reflect the reality of the energy transition. Kenya is positioning itself not just as an exporter of raw ore, but as a value-added hub. The planned gold refinery in Kakamega and the discussions around mineral processing zones at the coast suggest a move toward industrialisation.

The combination of a revitalised regulatory framework, a focus on green energy minerals, and a commitment to value addition has created a sense of momentum. The Archean cratons of the west offer high-risk, high-reward gold potential. For the industrial miner, the critical minerals found in the central and coastal regions provide a pathway into the supply chains of the future.

However, the road ahead requires consistency. Investors are watching the 2026 regulatory reforms closely. If the government can successfully institutionalise the royalty-sharing mechanism and maintain a transparent cadastre, Kenya will potentially cement its place as a cornerstone of the new African mining landscape.

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