Why CS Joho wants changes to Sovereign Wealth Fund Bill

Mining, Blue Economy and Maritime Affairs CS Ali Hassan Joho has called for amendments to the Sovereign Wealth Fund Bill, 2026, arguing that some of the proposed changes could undermine the operations and financial independence of the State Department for Mining.

Speaking during a working retreat with the National Assembly Departmental Committee on Environment, Forestry and Mining in Machakos County on Friday, Joho urged Members of Parliament to support the Ministry’s proposals before the Bill is debated further in the House.

The retreat brought together officials from the Ministry of Mining, Blue Economy and Maritime Affairs and legislators to deliberate on consequential amendments to the Mining Act contained in the proposed legislation.

Accompanied by Mining Principal Secretary Harry Kimtai, Joho  opposed proposals seeking to transfer the collection of mining fees, charges, and royalties from the State Department for Mining to the Kenya Revenue Authority (KRA).

“Honourable Members, since the Bill underwent the first reading and the public has now been invited to submit comments for consideration by the relevant House committee, we as a Ministry oppose the proposed amendment to Section 186 of the Mining Act which seeks to remove the role of the State Department for Mining in the collection of fees, charges and royalties and transfer the same to KRA,” said Joho.

The CS argued that the Ministry should retain the mandate to collect mining revenues because part of the funds supports the day-to-day operations and regulatory functions of the State Department.

Under the Ministry’s proposal, a significant percentage of the revenues would still be remitted to KRA in line with the law, while the remainder would be retained to facilitate operations within the mining sector.

Joho also revealed that the Ministry is seeking to exclude payments made on grants or assignments of mineral rights from being listed as funding sources for the proposed Sovereign Wealth Fund.

Additionally, the Ministry wants the Mineral Development Levy, currently provided for under the Mining (License and Permit) (Amendment) Regulations 2024, to be formally anchored in the Mining Act, 2026.

Committee Chairperson Vincent Musyoka advised the Ministry to present its financial proposals before the National Assembly Finance and National Planning Committee, which is handling the Bill.

“Before this matter goes for a third reading in the House, we need to see some constructive efforts to streamline any grey areas. It is the Finance Committee that will table this Bill,” said Musyoka.

Leo Wamuthende backed Joho’s position, saying the State Department for Mining should retain the responsibility of collecting mining revenues to avoid duplication of roles.

“Looking at the Bill, you have really thought ahead. However, I do not understand why KRA is here. I think the role of collecting this money should be left to the State Department for Mining to avoid duplication,” said Wamuthende.

Joho, however, maintained that the Ministry was not in conflict with KRA but was seeking reforms that would strengthen and sustainably support the mining sector.

“Our aim as a Ministry is not to fight KRA but to contribute to the sector in a meaningful way,” he said.

The Sovereign Wealth Fund Bill, 2026 seeks to establish a framework for managing revenues generated from Kenya’s natural resources and other strategic investments to support long-term national development.