State Department of Mining Opposes the Natural Resource Bill
The State Department for Mining has opposed the Natural Resource (Benefit Sharing) Bill, Senate Bill No. 6 of 2022.
This was revealed during an extensive engagement between the Departmental Committee on Environment, Forestry and Mining led by its Vice Chair, Hon. Charles Kamuren ( Baringo South), and the State Department for Mining led by Mr. Elijah Mwangi PS Mining.
In his presentation, Mr Mwangi said the the interpretation of the word Royalty in the Bill states; includes fees or payments by whatever name, paid by an entity for the exploitation exploration of a natural resource in Kenya. He further explained that according to the Mining Act Section 182 and 183, Fees and Charges are different from royalties.
” This Ministry’s concern with the proposal is that a portion of the monies are utilized to fund the Ministry’s regulatory and operational activities in appropriations-in-aid (A-in-A) and are therefore not remitted to the Consolidated Fund. The proposed definition of royalty includes fees and charges even in the exploration stage. This is not tenable considering that an entity at this point has yet to establish the resource’s presence, value and extent. ” Mr. Mwangi
The PS also pointed out Clause 3(h) of the Bill saying the Benefit Sharing Authority is contradicting with the functions of the Cabinet Secretary for Mining as provided for in Mining Act, 2016.
“As per the functions of the proposed Authority and Clause 3(h) of the Bill, it is true that if this Bill go through as it is, the State Department of Mining will cease to exist.” PS. Mwangi
Among the the stakeholders that were represent was the Center for Minority Rights Development ( CEMIRIDE) led by the CEO, Mr. Nyangori Ohenjo. He said that the current provision in the Bill states ‘Affected Entity’ as an organization or person involved in the exploitation of natural resource to which this Act applies.
” Indigenous and local communities are also hugely affected by natural resource exploitation. ” said Mr. Ohenjo.
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