MPs debate Gold Processing Bill which seeks to formalize Gold Mining Sector, introduce value addition and protect small scale miners

𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲 𝐂𝐡𝐚𝐦𝐛𝐞𝐫 
𝐖𝐞𝐝𝐧𝐞𝐬𝐝𝐚𝐲, 𝐅𝐞𝐛 𝟏𝟗𝐭𝐡 𝟐𝟎𝟐𝟓

Members of the National Assembly have commenced debate on the Gold Processing Bill (National Assembly Bill No. 46 of 2023) which seeks to establish a legal and institutional framework for gold processing in Kenya. 

The Bill proposes the creation of the Gold Processing Corporation. The Bill also seeks to establish a legal and institutional framework for collecting, purifying, smelting, fabricating, homogenizing, sampling, registering, monitoring and transporting of gold or products of gold.

Sponsor of the Bill, Hon. Bernard 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 Hon. Shinali.

Hon. Fred Ikana highlighted the economic potential of gold mining, particularly in regions rich in gold deposits such as Ikolomani Constituency, Shinyalu Constiuency, Turkana and Migori Counties. 

“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,” Hon. Ikana stated.

Hon. Ikana 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.

The Chairperson of the Committee on Environment, Hon. David Gikaria about Kenya exporting gold in raw form, depriving the country of potential revenue. “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 remarked.

Migori County MP, Hon. Fatuma Mohamed, who represents a gold-mining region, voiced strong support for the Bill, citing challenges faced by small-scale miners. “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.

Lawmakers noted that the Gold Processing Bill also seeks to combat illegal mining and the black-market trade in gold, which has led to revenue losses for the country.

If passed, it will regulate gold collection, purification, smelting, and value addition, with the aim of boosting revenue, formalizing small-scale mining, and curbing illegal trade.

Additionally, the establishment of gold processing plants is expected to create jobs and improve the livelihoods of mining communities.

Debate on the Gold Processing Bill, 2023 is expected to continue next week