Members of the National Assembly have commenced debate on the Gold Processing Bill, 2023, which seeks to establish a legal and institutional framework for gold processing in Kenya.
The Bill, sponsored by Ikolomani MP Bernard Shinali proposes the creation of the Gold Processing Corporation as well as the establishment of a legal and institutional framework for collecting, purifying, smelting, fabricating, homogenizing, sampling, registering, monitoring and transporting of gold or products of gold.
Shinali noted that proper regulation of the gold sector could significantly contribute to the economy.
“Gold processing has boosted exports and revenue in other countries including Sudan. A comprehensive legal framework will enable the country to accumulate good reserves and encourage foreign exchange,” he said.
The Bill which is at the second reading stage also seeks to ensure environmental management and safety standards in gold mining and processing.
“We need regulations to govern exploration, extraction, and processing of gold. This Bill provides a comprehensive framework that takes into account modern extraction methods and safety,” added Shinali.
The Bill has gained support from MPs representing gold-rich regions with Shinyalu MP Fred Ikana highlighting the economic potential of the sector particularly in regions rich in gold deposits.
“Kenya is a resource-rich country. This Bill will establish a framework that allows communities and the nation at large to benefit from their natural resources,” Ikana stated.
He also pointed out the importance of safety in the mining sector, noting that the Gold Processing Bill would protect miners from exploitation and ensure the gold’s value remains within the country.
“If enacted, this Bill will guarantee the safety of our miners and ensure they are not exploited. It will also promote value addition through local processing, generating foreign exchange,” he said.
Lawmakers also raised concerns over the challenges faced by small-scale miners, particularly restrictive licensing fees.
Migori County MP Fatuma Mohamed criticized the current system, noting that application costs had skyrocketed from Ksh20,000 to Ksh500,000.
“The licensing process is prohibitive. It used to cost Ksh 20,000, but was increased to Ksh 500,000. Many small-scale miners come from areas without electricity or internet, making it difficult to apply for a license. It can take up to four years to acquire one. This Bill is necessary to protect small-scale miners,” she said.
The legislation also aims to combat illegal gold mining and smuggling, which have led to massive revenue losses.
The Chairperson of the Committee on Environment, David Gikaria, noted that exporting raw gold deprives the country of potential earnings.
“Currently, our gold is exported without any value addition, meaning we don’t fully benefit. This Bill will help artisanal miners and ensure processing is done locally,” he stated.
