The National Assembly has started discussions on the Gold Processing Bill (National Assembly Bill No. 46 of 2023), which aims to introduce a legal framework for gold processing in Kenya.
Sponsored by Ikolomani MP Bernard Shinali, the Bill proposes the establishment of a gold processing corporation to oversee key aspects of the industry, including collection, purification, smelting, and transportation. The goal is to maximize the country’s benefits from its gold resources.
According to Shinali, countries like Sudan have significantly increased their export earnings through structured gold processing. He believes that putting clear regulations in place will help Kenya accumulate reserves and attract foreign exchange.
Currently at its second reading, the Bill also seeks to introduce environmental management and safety standards for gold mining and processing. Shinali underscored the need for proper regulations to govern exploration, extraction, and processing.
“The sector needs a legal framework that outlines clear rules for extraction and processing. This Bill ensures modern methods are used while maintaining safety,” he stated.
Shinyalu MP Fred Ikana highlighted the economic potential of gold mining, particularly in gold-rich areas like Ikolomani, Shinyalu, Turkana, and Migori.
“Kenya has immense mineral wealth. This Bill will ensure both local communities and the entire country benefit from these resources,” Ikana said.
He added that the legislation would enhance miners’ safety, prevent exploitation, and promote value addition by encouraging local processing, which would increase foreign exchange earnings.
The Bill has received strong backing from lawmakers, including David Gikaria, chair of the Environment Committee, who criticized the export of unprocessed gold.
“Right now, raw gold is sent out of the country without any value addition, which means we are not reaping the full benefits. This Bill will formalize artisanal mining and ensure gold processing happens locally,” Gikaria noted.
Migori Woman Representative Fatuma Mohamed also voiced her support, pointing out the difficulties small-scale miners face, such as high licensing fees and bureaucratic delays.
“The cost of obtaining a license was raised from Sh20,000 to Sh500,000, making it nearly impossible for small miners to operate. This Bill will help protect them,” she stated.
If enacted, the Bill will introduce regulations for gold collection, processing, and value addition, aiming to boost revenues, streamline the small-scale mining sector, and curb illegal gold trade.
