MINING LICENSE IN KENYA
A Comprehensive Guide for Foreign Investors
Governed by the Mining Act, 2016
Prepared: BY SIMON KAHIGA Advocate ofthe high court of Kenya
Executive Summary
Kenya offers rich mineralresources regulated under the Mining Act of 2016, administered by the Ministry
of Mining. However, foreigners face specific legal restrictions: they cannot
independently hold a standalone mining license. Instead, foreign investors must
partner with Kenyan entities, form a locally registered company, obtain a Class
A Work Permit, and comply with all environmental, financial, and operational
requirements.
This report provides astep-by-step roadmap for foreign nationals seeking to obtain a mining license
in Kenya – from entity formation and work permit acquisition to full license
issuance and post-licensing obligations.
1. Legal Framework
Kenya's mining sector is governed by the Mining Act of 2016 and overseen by the Ministry of Mining. Key
highlights include:
• All natural resources, including minerals, are held intrust by the National Government for the benefit of the Kenyan people
(Constitution of Kenya, 2010).
• Foreign nationals cannot apply for mining licensesindependently – partnership with Kenyan citizens or entities is legally
required.
• The Mining Cadastre Portal is the official onlineplatform for all mineral rights applications.
• Licenses are issued for different minerals, explorationstages, and durations.
• Community engagement, environmental assessments, anddetailed documentation are all mandatory requirements.
2. Types of Mining Licenses Available
Kenya offers five main types of mining licenses tailored to different activities and scales of operation:
Prospecting License
Mineral exploration & mapping
Mining License
Commercial mineral extraction
Special Mining License
Large-scale operations
Artisan & Small-Scale (ASM)
Mineral Dealer License
Trading minerals (gold, copper, etc.)
Required for export
NOTE: The Artisan & Small-Scale Mining (ASM) License isprimarily designed for local Kenyan community-based operations and may not be accessible to foreign investors.
3. Special Requirements for Foreign Investors
Foreign nationals faceadditional requirements beyond the standard licensing process. The following
are mandatory steps specific to foreigners:
3.1 Form a Local Entity
• Company Registration: Register a local companyor subsidiary via the eCitizen Portal (https://accounts.ecitizen.go.ke/) to obtain a Certificate of Incorporation.
• Local Shareholding: The company must demonstratemajority local shareholding – a minimum of 60% locally owned. This requires
partnering with Kenyan citizens or other Kenyan entities.
• Minimum Capital Investment: Foreign investorsmust demonstrate a minimum capital investment of USD 100,000 (approximately KES
12.9 million).
3.2 Obtain a Class A Work Permit (Mining Visa)
A Class A Work Permit – commonlyreferred to as a Mining Visa – is issued to foreigners intending to engage in
prospecting or mining in Kenya, whether alone or in partnership. This permit is
mandatory before commencing any mining activities.
Requirements for the Class AWork Permit include:
• Duly completed and signed Form 25 (submitted online viathe Kenya eFNS Portal).
• Two copies of a detailed cover letter from theemployer/organization addressed to the Director of Immigration Services.
• Copies of valid national passport.
• Two recent passport-size colored photographs.
• Proof of current immigration status if already in the country.
• Copies of all previous permits held (if applicable).
• Necessary mining licenses and registrations forprospecting or mining.
• Proof of investment funds of at least USD 100,000.
• Processing fee of KES 20,000 (non-refundable).
• Valid Organization Tax Compliance Certificate.
• Documents in foreign languages must be translated intoEnglish by an Embassy, Public Notary, or recognized institution.
The application is processedonline via the Kenya eFNS Portal and physically submitted at Nyayo House,
Nairobi.
NOTE: The Class A Work Permit is only valid in conjunction withthe requisite mining license. Renewals require additional documentation
including audited accounts.
4. Step-by-Step Application Process
Step 1: Conduct Prel
iminary Exploration and Site Analysis
• Conduct initial exploration activities to confirm themineral potential of the target area.
• Obtain geological reports and supporting data tojustify the license application.
Step 2: Register a Local Company
• Register a company in Kenya via the eCitizen Portal tolegally conduct mining operations.
• Ensure at least 60% local (Kenyan) shareholding is inplace.
• Obtain the Certificate of Incorporation, Tax ComplianceCertificate (KRA), and audited financial statements.
Step 3: Conduct an Environmental Impact Assessment (EIA)
• Commission a full EIA and obtain certification from theNational Environment Management Authority (NEMA).
• The EIA must include community consultations, an impactassessment, and proposed mitigation plans.
• The certified EIA report is a mandatory attachment forthe mining license application.
Step 4: Obtain a Class A Work Permit
• Apply for the Class A Work Permit via the Kenya eFNSPortal before submitting the mining license application.
• Submit required documents including Form 25, passportcopies, proof of capital, and tax compliance certificates.
Step 5: Register on the Mining Cadastre Portal
• Access Kenya's Mining Cadastre Portal and register orlog in to your account.
• The portal manages all mineral rights applications andprevents overlapping claims by automatically marking zones as 'taken' upon application.
Step 6: Submit the License Application• Complete the license application form specifying themineral type, geographic coordinates (geospatial data), and proposed activities.
• Attach all required documents in PDF format including:Company registration certificate, NEMA-approved EIA report, KRA Tax Compliance
Certificate, Proof of land access or consent from landowners/county authorities, Proof of financial and technical capacity (bank statements, audited accounts, CVs of technical staff), Feasibility study/mineral resource report.
Step 7: Pay Application Fee
• Pay the applicable non-refundable fees directly throughthe Mining Cadastre Portal.
• Large-scale Mining License: KES 50,000.
• Small-scale Mining Permit: KES 1,000.
Step 8: Ministry Review and Site Inspection
• The Licensing Division confirms completeness of theapplication before forwarding it to the Mineral Rights Board (MRB).
• The MRB reviews the application and prepares anadvisory for the Cabinet Secretary.
• A site inspection may be conducted to verify submittedinformation.
• The Cabinet Secretary makes the final decision toapprove or reject the license.
• Processing typically takes up to 90 days for a completeapplication. Incomplete applications may extend this period.
Step 9: License Issuance
• Approved applicants receive a digital license throughthe Mining Cadastre Portal.
• Stamp duty fees (assessed by the Ministry of Lands) arepayable at this stage – amounts vary by licence size.
• Annual rent and royalties become payable uponcommencement of operations.
. Costs and Fees Summary
costs involved in obtaining a mining license in Kenya as a foreign investor:
Mining License Application Fee (Large Scale)
KES 50,000 Non-refundable
Mining Permit Application Fee (Small Scale) KES 1,000 Non-refundable
Annual Rent (Large Scale) KES 2,000/hectare
Min. KES 500,000
Annual Fee (Small Scale Permit) KES 10,000 Per year
Work Permit – Class A Processing Fee KES 20,000 Non-refundable
Mineral Dealer Licence (Precious Metals) KES 100,000
Mineral Dealer Permit KES 2,000 Within Kenya only
EIA Assessment Fees Project-based
Assessed by NEMA
Annual Royalties 1% – 8% % of gross sales value
Stamp Duty (Land Registration) Variable
Based on licence size
NOTE: Annual royalties range from 1% to 8% ofgross sales value depending on the mineral type. All fees are subject to change – verify current rates on the Mining Cadastre Portal.
6. Post-Licensing Obligations
Once a mining license is issued,holders must comply with the following ongoing obligations:
6.1 Reporting Requirements
• Monthly & Annual Production Returns: Detailthe quantity and quality of minerals extracted, including ore grades and
recovery rates.
• Quarterly Royalty Returns: Document royaltypayments made to the government based on the value of minerals sold.
• Quarterly Mine Development Returns: Updates onsite preparation, infrastructure, environmental mitigation, and community
engagement (with maps, photos, and expenditure breakdowns).
• Monthly & Annual Revenue Reports: Summarizemineral sales, operational costs, and statutory payments.
6.2 Legal & Financial Compliance
• Comply fully with the Mining Act (2016), the EnvironmentalManagement Act, and all relevant subsidiary legislation.
• Pay royalties on all minerals extracted and remittimely tax payments to the Kenya Revenue Authority (KRA).
• Renewal applications must be submitted at least 90 daysbefore the license expiration date.
6.3 Community and Environmental Responsibilities
• Invest in community development (healthcare, education,infrastructure) as part of Corporate Social Responsibility (CSR) obligations.
• Failure to fulfill CSR commitments can lead toconflicts and potential license suspension.
• Submit regular environmental monitoring reports toNEMA.
6.4 Health & Safety
• Enforce strict health and safety standards foremployees and surrounding communities.
• Comply with the Occupational Health and Safety Act.
• Conduct regular safety inspections and emergencydrills.
7. Grounds for Suspension or Cancellation
Mining licenses in Kenya can besuspended or cancelled for the following reasons:
• Failure to pay royalties or applicable taxes.
• Environmental violations or non-compliance with NEMAconditions.
• Non-compliance with the Mining Act, 2016.
• Failure to submit mandatory periodic reports on time.
• Misuse or abuse of the mining license.
In cases of serious violations,the Ministry may cancel the license entirely, and the holder could face fines
or legal action.
8. Key Tips for a Successful Application
• Engage Legal and Mining Experts Early: Hireprofessionals in mining law, geology, and environmental management to
strengthen your application and reduce risk.
• Prepare Comprehensive Documentation: Ensure alldocuments are accurate, up-to-date, and fully meet the Ministry's requirements.
A well-prepared EIA can significantly accelerate approval.
• Identify the Right Kenyan Partner: Choose atrustworthy Kenyan shareholder or entity with relevant experience. Formalize
the partnership via a Joint Venture or Shareholders' Agreement.
• Engage Local Communities Early: Conduct thoroughconsultations and address community concerns before submitting your
application. Community support reduces conflicts and strengthens your EIA
report.
• Ensure Full Tax Compliance: Both theorganization and individual applicants must have valid KRA Tax Compliance
Certificates at the time of application and renewal.
• Use the Mining Cadastre Portal Correctly: Ensureyour geospatial coordinates are accurate. Overlapping claims will be rejected
automatically by the system.
. Key Government Contacts & Resources
Ministry of Mining: Cadastre Portal:
•Kenya Immigration (Work Permits):
eCitizen Portal (Company Registration):
NEMA (EIA Certification):
Kenya Revenue Authority (Tax Compliance):
