A section of stakeholders attend a Policy Conservation on Fiscal Management of Revenue and Actualization of mineral Royalties Forum at Diani Reef Hotel in Msambweni sub-county, Kwale County on Wednesday, September 25, 2024.
Kwale County mining stakeholders have raised concerns about the prolonged delay in the disbursement of mining royalties to counties.
Base Titanium, largest sand harvesting mineral in the country and other mineral companies have been paying royalties to the national government since 2016 worth over sh2.9 billion.
At least 32 counties are yet to receive their mineral royalties where Kwale County expects to get around sh1.2 billion, Kilifi sh350 million and Kajiado sh660 million and many others.
Speaking during a Policy Conservation on Fiscal Management of Revenue and Actualization of mineral Royalties Forum at Diani Reef Hotel, Kenya Human Rights Commission Executive Director Cornelious Oduor said it has been long too long since government promised to disburse the royalties.
He said the delay has caused significant financial strain on local governments and communities highly depending on minerals for development.
“The delayed payments have negatively impacted the counties’ ability to implement development projects, particularly in areas that rely heavily on revenue from mineral extraction,” he said.
The two-day forum was organized by Kwale Mining Alliance and KHRC. It brought stakeholders together to provide insights and solutions to spearhead the disbursement of the mineral royalties.
He noted that it is sad that since 2016 to date the royalties have not yet reached the communities because of a lack of better framework.
Oduor said the delay has hindered key services such as infrastructure development, education, and healthcare, which are essential for the welfare of the residents.
He added that there are people who succumbed because of poor health services yet the royalties could have played a key role in improving lives of the communities.
Oduor said the mining affected residents many of whom live in poverty, have been deprived of the prosperity they were promised.
He said the mining royalties were expected to help uplift the communities by providing resources for social and economic programs aimed at improving their living standards.
Oduor said the delay has instead widened the inequality gap, as the residents are yet to reap the benefits of the mining activities in their region.
The officer called on both the national government and the Ministry of Mining to expedite the release of the funds to ensure that counties dependent on minerals can fulfill their mandates.
He also urged for greater transparency and accountability in the management of mining royalties to prevent future delays and misappropriation of the funds once released.
Oduor said stakeholders must help address legal gaps to strengthen utilization of the public resources.
He emphasized that the funds must be allocated to projects that directly benefit and uplift the local communities.
“These challenges should spark a broader conversation on the management of royalty funds. The discussion needs to focus on addressing the critical issues that affect these communities, ensuring that the resources are used effectively for their intended purpose,” he said.
Oduor further pointed out that the country faces systemic issues in the management of public resources, stressing the need for a more robust and transparent framework to safeguard mineral royalties.
“We must establish a better system to ensure that these royalties are protected and used for the benefit of the people, rather than getting lost in mismanagement and inefficiency,” he added.
Kwale Mining Alliance Coordinator Kashi Jarmaine expressed a disappointment as to why the mineral royalties have delayed.
He said the mineral sharing framework of 70 percent(National government), 20 percent (counties) and 10 percent(community) was put in place but there has been a delay in the implementation of the mining policy.
Jarmaine noted that further delay in the disbursement of the funds is a violation of the law as stipulated in the 2016 Mining Act.
The human rights defender demanded answers regarding the whereabouts of the royalty funds and the reason for the delayed disbursement.
“There must be accountability, and the relevant authorities should be held responsible for this failure,” he stated firmly.
Jarmaine noted that companies like Base Titanium and other mining firms have consistently remitted royalty payments to the government on time, raising concerns about why the National Treasury has been hesitant to release the funds.
“These companies are fulfilling their obligations, so it is unacceptable that the funds meant for the communities are being withheld. We need transparency on this issue,” he said.
Kwale Mining Alliance Coordinator Kashi Jarmaine speaks to stakeholders at Diani Reef Hotel in Msambweni, Kwale County on Wednesday, September 25, 2024. Photo by Shaban Omar
Gombato-Bongwe MCA Tumaini Mwachaunga acknowledged that numerous development projects have come to a standstill due to the delay in disbursing mineral royalties.
“The county had earmarked these funds for critical projects, but we’ve been forced to postpone many of them because the royalties have yet to be distributed,” he explained.
Mwachaunga stressed that the stalled projects were intended to address key infrastructure and community needs, adding that the prolonged delay has derailed the county’s development plans, ultimately impacting the livelihoods of residents.
Principal Administrative Secretary at the Office of the County Secretary, Hassan Mwadzugwe, disclosed that the county was recently compelled to resort to a supplementary budget after the anticipated royalty funds were not remitted as planned.
“We had made provisions for these funds in our original budget, and their delay forced us to seek a supplementary budget to fill the gap,” Mwadzugwe explained.
He further emphasized that the county has a well-structured framework in place for utilizing the royalties effectively, and called for the immediate disbursement of the funds.
“The county is ready to implement projects that will benefit the community, but this can only happen if the royalties are released without further delay,” he added.
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