Parliament has given the green light to new mining royalty regulations, even as the National Assembly’s Committee on Delegated Legislation and government officials clashed over whether communities hosting minerals are receiving a fair share of national wealth.
The regulations, which govern how mining royalties are shared, have reignited debate on equity in Kenya’s extractive sector. At the centre is the balance between national revenue needs and local compensation.
The Mining (Mineral Royalty Sharing) Regulations, 2026 maintain a 70 per cent share for the national government, 20 per cent for counties and 10 per cent for communities. While the structure remains unchanged from the Mining Act, MPs argued that it fails to reflect the burden placed on mining regions.
Kilgoris MP Julius Sunkuli on Tuesday questioned the lack of clarity on who qualifies as a beneficiary. “We must be clear on what constitutes a community. This definition is very critical,” he said.
Committee vice chair Robert Gichimu echoed similar concerns, saying the success of the framework depends on clear identification of beneficiaries. “The definition of community is central to the successful implementation of these regulations,” he said.
Samburu Woman Representative Pauline Lenguris pushed for a bigger share for locals, arguing that they should be the primary beneficiaries of mining proceeds. “The community should be the primary beneficiary of the proceeds of mining before any other benefactors,” she said.
Lukuyani MP Innocent Mugabe supported the draft rules, describing them as well prepared and workable. “I am trying to fault these regulations, but I can attest that this is the best regulation drafted,” he said.
Questions were also raised on whether public participation was adequately carried out before the regulations were developed. MPs insisted that local voices must be central in decisions affecting mining communities.
Mining Cabinet Secretary Hassan Joho defended the framework, saying it is already anchored in law and cannot be altered through subsidiary regulations. He explained that the key goal is to ensure smoother and faster distribution of funds to beneficiaries.
“The share of royalties payable to communities shall be used to facilitate projects identified by the community,” CS Joho told the Committee.
He also revealed that Cabinet has approved a policy banning the export of raw minerals. “No mineral shall be exported in its raw form,” he said, adding that the move is aimed at boosting local value addition.
Mining Principal Secretary Harry Kimtai pointed to delays at the National Treasury as a major setback in the current system. He said funds often take too long to reach intended communities, delaying development projects.
“The revenues get to the National Treasury but it takes too long to have them disbursed to the local community,” he said.
Kimtai added that communities also benefit through corporate social responsibility programmes, local content rules and a separate one per cent gross revenue allocation for development agreements. Officials said these contributions complement statutory royalties.
However, MPs dismissed CSR initiatives as unreliable, saying they depend on companies and are not guaranteed under law. They insisted that royalty sharing must remain the core mechanism for fair benefit distribution.
The regulations require the ministry to identify and publish beneficiary communities within 30 days of issuing mining licences. In his closing remarks, Gichimu urged public sensitisation to ensure communities understand and access their entitlements.