Government Pledges to streamline royalty disbursement as Base Titanium nears closure.

As Base Titanium’s mining operations in Kwale County approach their December closure, the issue of royalty disbursement has taken center stage.

Cabinet Secretary for Mining and Blue Economy Hassan Ali Joho has promised to work closely with Parliament to establish clear policies and laws that will ensure the timely disbursement of royalties accrued from mining activities, assuring stakeholders that once regulations are in place, funds will be distributed without delay.

During his visit to the Base Titanium mine site, Joho stressed the importance of transparency and collaboration in determining how royalties are calculated and disbursed.

“I am proposing that once the regulations are put in place, the funds should be distributed in a timely manner. We will ensure that the national government, county government, and the host residents all receive their share on time,” Joho said.

Under the current framework, royalties from mining activities are distributed among the national government, the county government, and local communities hosting the mining operations. The residents of the mine’s host area are entitled to 10% of the total royalties, but delays in the disbursement have caused frustration among leaders and the community.

However one of the key issues raised during Joho’s tour was the discrepancy between the amounts recorded by the Ministry of Mining and those claimed by the Kwale County government.

Joho revealed that according to ministry records, Kwale County is owed Ksh 1.2 billion in royalties accrued from Base Titanium’s mining operations.

However, the county government of Kwale through the governor Fatuma Achani have reported a different figure of Ksh 1.7 billion.

“We are aware of the differences in figures between what the Ministry has and what the county government has reported. As of now, our records show Ksh 1.2 billion in royalties for Kwale County. We will work to ensure this matter is resolved and the correct amount is disbursed once policies and laws are established,” Joho stated.

The Cabinet Secretary made it clear that no funds would be lost, and the royalties would be disbursed once the necessary legal framework was established.

He emphasized the need for a unified and transparent approach to royalty distribution to avoid such discrepancies in the future.

Local leaders have echoed Joho’s sentiments, stressing the need for policy reforms to guarantee that the residents of Kwale County, especially those living near the mine site, receive their fair share of the royalties.

Msambweni Member of Parliament Feisal Badder, who accompanied Joho during the tour, reiterated the need for strong policies and laws to ensure the royalties benefit the local population.

He assured residents that the royalties had not been lost and would be released once the necessary legal framework was in place.

“We want to ensure that the royalties accrued from Base Titanium’s operations benefit the residents who have hosted one of Kenya’s most lucrative mining operations. I urge the Cabinet Secretary to move swiftly and draft the regulations so that Parliament can debate and pass them. The people of Kwale deserve to reap the benefits of hosting this mining company,” Feisal said.

The MP’s remarks came amid growing concerns from the local community about the delay in royalty disbursements.

The debate over royalties has been ongoing for several months. In August, Kwale Governor Fatuma Achani called on the national government to release the royalties accrued over the past decade.

Achani expressed frustration over the delay, noting that the funds were crucial for local development and service delivery.

During Joho’s visit, the governor’s earlier demands were referenced, with local leaders stressing the need for an immediate resolution.

Joho reassured the leaders and residents that the government was committed to ensuring the royalties were released and that the process would be expedited.

As Kwale County prepares for life after Base Titanium, the spotlight remains on how royalties will be managed and distributed.

The establishment of clear policies and laws governing royalty disbursement will be key to ensuring that the community benefits from the mining activities that have taken place over the past decade. With promises from the Ministry of Mining and local leaders, the residents of Kwale County are hopeful that they will soon see the fruits of their patience.

The government’s commitment to a transparent, inclusive process could set a precedent for mining operations across Kenya, ensuring that local communities are adequately compensated for the resources extracted from their land.