The long wait for counties to receive a share of money earned from Kenya’s mineral resources has ended, with the National Treasury confirming the release of Sh2.9 billion to eligible devolved units.
The funds had remained unpaid for years as the government worked through legal and administrative issues surrounding the distribution of mineral royalties. Treasury said the entire Sh2.9 billion allocation has now been disbursed to counties, although it did not provide a county-by-county breakdown of the payments.
"The National Treasury disbursed 100 percent of the Sh 2.9 billion allocations for mineral royalties to eligible counties. The full disbursement of the allocation reflects the government's commitment to ensuring the timely transfer and supporting county governments in the delivery of devolved functions" it said on Tuesday.
The Treasury further said: "The National Treasury continues to coordinate the transfer of these funds to eligible county governments to facilitate the equitable sharing of benefits arising from mineral resources"
The payment covers counties identified as beneficiaries of mineral royalty revenue. Previous records listed 32 mineral-rich counties, among them Kwale, Makueni, Taita Taveta, Homa Bay, West Pokot, Kericho, Kakamega and Elgeyo-Marakwet.
The Mining Act, 2016 requires holders of mineral rights to pay royalties to the State based on the different classes of minerals extracted. The law then provides for the revenue to be shared between the national government, counties where mining takes place and communities affected by the activities.
Under Section 183 of the Act, 70 percent of the royalties is meant to go into the Consolidated Fund, while the remaining 30 percent is set aside for affected counties. Communities living in areas affected by mining are entitled to 10 percent directly from the county portion.
The actual distribution of the mineral revenue had, however, been held up for years because of a legal gap over how the money should be transferred and shared.
A framework for dividing the revenue between the national government, counties and communities had been prepared, but the Attorney General's office advised in December 2022 that additional regulations were required under the Mining Act. The regulations were needed to establish how mineral royalties would be passed on to communities.
The release of the county allocation comes against a backdrop of improving mineral royalty collections. Figures from the Mining ministry show that revenue from royalties increased by 18.8 percent in 2025 to Sh3.8 billion, compared with Sh3.2 billion collected in 2024.
The rise was partly linked to tighter oversight of quarries and construction materials after Australian mining firm Base Titanium left the sector.
Even with the latest increase, collections have not returned to the level recorded in 2022, when mineral royalties approached Sh5 billion. Revenue later declined to Sh3.7 billion in 2023 and reached Sh3.2 billion in 2024.
The fall in earnings was linked to the closure of large-scale mining operations in Kwale following the exhaustion of titanium ores. The shutdown brought an end to one of the country's biggest mining operations and affected the overall level of royalty income.
With the Sh2.9 billion now released, counties eligible for the payments have gained access to revenue that had been held up for years, while the recovery in mineral collections points to renewed growth in income from the sector.