Kenya will no longer export raw minerals for processing abroad, with the government planning to expand local refining and manufacturing to create jobs and retain more value from the country's natural resources.
The government also plans to review existing mining agreements and open opportunities to more companies as part of efforts to ensure communities benefit more from mineral wealth.
President William Ruto announced the policy while speaking in Samburu during the Thanksgiving ceremony for Devolution Principal Secretary Michael Lenasalon, saying Kenya would establish refineries for gold, lithium, coltan, rare earths and other minerals.
“Going into the future, our policy position, our position as the government of Kenya, whether we are talking about Magadi soda, or we are talking about oil, or we are talking about all our minerals—gold, lithium, coltan, rare earth—all of them—we have taken the policy decision that we will no longer export raw materials,” he said.
“We are going to process all minerals available in the Republic of Kenya.”
Ruto said the government was working with investors, including Dangote, to establish processing facilities, including a refinery in Lamu.
He said Kenya was also pursuing gold refineries and facilities for other minerals, arguing that processing resources locally would create employment and increase their value.
“It is imprudent for any government to export raw materials, create jobs and value in other countries, when we have a big population of young people who need jobs,” he said.
The president criticised existing mineral arrangements, saying some allowed investors to take Kenyan resources abroad for processing while leaving the country with a small share of the proceeds.
“The contract that existed allowed people to take our minerals, leave us with only 5 per cent, and go and process 95 per cent elsewhere,” he said.
He said such arrangements would be reviewed and new opportunities advertised to a wider group of investors.
“We will advertise again, and it will not be just one or two companies. We want to give opportunities to five or six companies, or even up to 10 companies,” Ruto said.
The President said the approach would help create jobs, increase value, generate wealth and reduce poverty.
His announcement comes days after he ordered the closure of Tata Chemicals' soda ash operations at Lake Magadi in Kajiado, accusing the company of failing to invest adequately in the county and add value to its resources.
President Ruto said any new investor would be required to establish industries locally, including glass and chemical manufacturing facilities.
“Kwani sisi ni watumwa wa watu wengine? Kwani hii Kajiado itajengwa namna gani? Si itajengwa na rasilimali iko hapa?” he asked.
He said the government wanted communities hosting natural resources to benefit through investment, employment and local processing.