Mining and Natural Resources Lawyers in Nairobi

It depends on the activity. Reconnaissance, prospecting and mining are different rights with different application requirements, and there are separate licences for retention, dealing in minerals and small scale operations. Applications go to the State Department responsible for mining with the prescribed documents and fees, and mineral rights are generally granted and administered under the Mining Act 2016. Community and land access considerations arise early rather than at the end. See how to get a mining licence and the difference between licence classes.

Foreign participation is permitted but not unlimited. The Mining Act sets limits on foreign ownership for certain small scale and artisanal categories, and the position depends on the licence class involved, so the structure has to be chosen around the intended activity rather than assumed. Where a Kenyan partner is required, the shareholder and joint venture arrangements need to reflect the licensing constraints from the outset. See foreign ownership of mining rights and structuring a mining joint venture.

Royalty rates are prescribed by the Mining Act and vary with the mineral and the class of licence, and they sit alongside corporate tax, withholding obligations and other charges. Royalty obligations attach to production, so they are assessed on actual output rather than on projections. Because rates and exemptions have changed, we check the current position against the Mineral Royalties regulations and the licence terms for the specific mineral rather than rely on general figures. See mining royalties and refining and export rules for precious metals.

The Mining Act requires consultation and, for mining licences, a community development agreement that sets out commitments on development, and it addresses how the community benefits. Alongside that, the project needs the land access and compensation position resolved, and it needs a grievance mechanism that actually works, because unresolved complaints become disputes and sometimes licence problems. Private commitments do not replace statutory approvals, so the sequence matters. See community consent and benefit sharing and what to agree before work starts.

Closure is not a matter of simply walking away. Licences and environmental obligations carry rehabilitation and mine closure requirements, and the operator is generally expected to fund that work, sometimes through a rehabilitation bond or similar arrangement. Environmental obligations also sit alongside land restoration and, where relevant, post-closure monitoring. Environmental approval and audit are handled by the National Environment Management Authority. The cost of closure is best addressed at project design stage because retrofitting it is expensive. See environmental obligations and mine closure and due diligence before buying a mining company.