Why Kenya is lagging behind Tanzania and Ghana in gold production

Kenya is producing only a fraction of the gold extracted by its regional competitors, with the mining industry blaming decades of government neglect, weak regulatory support and political interference for the country's failure to turn its mineral wealth into a major economic sector.

Kenya Chamber of Mines Chairperson Patrick Kanyoro says the country produces about 363kg of gold annually, far below Tanzania's 60 tonnes and Ghana's nearly 190 tonnes, despite having considerable deposits of gold and other valuable minerals.

Speaking on Radio Generation on Friday, Kanyoro said successive administrations had failed to give mining the attention and support needed to attract investors, expand extraction and create a strong industry.

He called for the establishment of an independent mining regulatory authority to oversee operations, limit political interference, bring informal miners into the formal economy and boost mineral production.

"Historically, since independence, no government, all successive governments, have given this sector the attention," Kanyoro said.

He argued that Kenya has the potential to establish approximately 50 gold mines but has struggled to create favourable conditions for investors to undertake large-scale mining.

Kanyoro said the country has substantial deposits of gold, silver, copper, iron ore, limestone, titanium, diatomite and rare earth minerals spread across several counties.

He identified western Kenya as a major gold-producing region, while copper deposits are found in Kitui, Makueni, West Pokot and Turkana. Iron ore is also present in Kitui, Taita Taveta, West Pokot and Busia.

The Chamber of Mines chairperson, whose organisation was established in 2001, further noted that Kenya has a long history of gold extraction, with commercial mining activities dating back more than 100 years.

"We have a lot of gold in Kenya," he said.

Despite this potential, Kanyoro warned that a large portion of gold production takes place outside formal mining systems, making it difficult for the government to establish actual production figures and collect revenue from the trade.

He said the informal nature of the industry had also created opportunities for gold smuggling, denying the country income that could be generated through royalties and mineral exports.

Kanyoro urged the government to organise and formalise artisanal and small-scale mining operations so that production can be properly recorded and miners can operate within the law.

He also raised concerns about illegal mining activities along River Yala, where dredging and the use of mercury in gold extraction have exposed communities relying on the river to potential environmental and health risks.

On the regulatory framework, Kanyoro explained that the Mining Act 2016 provides for different licensing requirements depending on the scale of operations.

Under the law, large-scale mining companies are required to obtain mining licences, while artisanal and small-scale operators work under permits. Mining licences are valid for 25 years, whereas permits run for three years.

He pointed to Karebe Gold Mine in Nandi County as an example of how organised mining can contribute to local development through employment opportunities, royalty payments and investment in surrounding communities.

According to Kanyoro, the mine has supported local schools, healthcare facilities and road development, demonstrating the wider benefits that could come from expanding large-scale mining across the country.

He maintained that the industry already supports a substantial number of livelihoods and should receive greater government backing to unlock its full potential.

"The mining sector employs a minimum of 300,000 Kenyans," he said.

Kanyoro further argued that an independent regulatory institution, similar to those operating in Tanzania and Ghana, would strengthen oversight, improve accountability and protect the industry from political influence.

His concerns come against the backdrop of declining mineral production earnings, with the Kenya National Bureau of Statistics (KNBS) reporting a drop in the value of mineral production from Sh25.5 billion in 2024 to Sh20.3 billion in 2025.

The KNBS Economic Survey 2026 also showed that gold production dropped from 358.5kg in 2024 to 329.1kg in 2025, highlighting the challenges facing one of the country's key mineral resources.

However, some mineral categories recorded growth during the period. Soda ash production increased by 9.3 per cent to 289,610.8 tonnes, while carbon dioxide output more than doubled to 31,526.2 tonnes.

Diatomite production also rose to 950.5 tonnes.

Titanium ore recorded one of the steepest declines, with production falling by 49.1 per cent to 101,000.5 tonnes following the departure of Base Titanium from Kwale County after exhausting economically viable mineral reserves.

The figures reflect the challenges facing Kenya's mining industry as it struggles to translate its mineral deposits into higher production, investment and revenue.