Communities living near mining areas could soon directly benefit from mineral royalties if a new law passes Parliament. The Mining (Amendment) Bill, 2025 aims to fast-track the release of funds to counties and give residents a voice in how the money is spent on development projects.
The Bill, tabled last week, proposes changes to the existing Mining Act to clearly define how royalties are distributed and utilised.
Under the proposal, the government would transfer royalties to county revenue funds within 21 days of receipt, ensuring that communities start seeing benefits without long delays.
Sponsored by nominated senator Karen Nyamu, the amendment allocates a portion of royalties for projects chosen by community project identification committees. These committees, made up of local representatives, will determine which projects—such as schools, health facilities, and roads—receive funding.
Once the committees make their decisions, the county executive committee member responsible for finance will ensure funds are spent strictly on approved initiatives. The measure is aimed at preventing past mismanagement and diversion of resources in some mining areas.
The Bill also tasks the Commission on Revenue Allocation with determining each county’s share when a community spans more than one administrative area. This is meant to prevent disputes and ensure fair distribution.
Mining companies will also have new obligations under the Bill. When granting or renewing licences, authorities must notify local communities about expected royalties, giving residents transparency and accountability over benefits from mining operations.
Senator Veronica Maina, a strong advocate for resource-based empowerment, welcomed the Bill, saying, “The country’s mineral wealth should serve as a catalyst for local development, not just national revenue.”
For years, regions such as Taita Taveta, Turkana, and Narok have struggled with delayed royalty payments. The proposed law addresses this by establishing a fixed 21-day timeline, moving development planning from uncertain national processes to predictable, community-driven projects.
Currently, the Mining Act provides a 70:20:10 split between the national government, county governments, and host communities, but counties have often faced long waits before receiving their share. The amendment mandates that the National Treasury transfer funds to counties within 21 days after receiving a certified schedule from the Ministry of Mining.
If enacted, the Bill could transform development in mining regions. Funds would be used for projects like schools, health facilities, water systems, and roads, directly improving living standards. Observers caution that strong oversight will be needed to ensure funds are properly managed and reach the intended projects.