State plans to fast-track disbursement of mining royalties

Thursday, January 28th, 2021 11:20 | By
Mining and Petroleum Chief Administration Secretary (CAS) Engineer John Musonik

The national government says it plans to fast-track the disbursement of royalties paid by Australian-owned mining firm Base Titanium which has been with The National Treasury for over five years.

Mining and Petroleum Chief Administration Secretary (CAS) Engineer John Musonik said the ministry of mining was working together with the Treasury, the county government, investor and other leaders to see how the communities where mining is been done benefit from the funds.

Musonik said that their have been several frameworks that were to be put in place that caused the delays of the disbursement of the mineral royalties but soon disbursement will start.

"The 20 per cent for county government and the 10 percent mineral royalty for the community will soon be released since the national government has already come up with the required framework that was to be used as a guideline during the disbursement," Musonik said.

He was speaking at a Diani hotel during the induction meeting of the members of Community Development Agreement (CDAs) which were gazetted last year by Cabinet Secretary for mining John Munyes where they will be benefiting from the 1 percent revenue of the mining proceeds.

The 1percent revenue will be used for the development projects in Likoni, Msambweni and lungalunga constituencies that are affected by mining activities.

The members of the CDAs will be holding public participation in their respective constituencies for the development projects to be carried out.

However Lungalunga Mp Khatib mwashetani urged the national government that they should disburse the royalties from the previous years they started benefiting from base titanium mining company.

"When the national government starts disbursing the mineral royalties to kwale county government and the community it should consider compensating from the previous years. All those past years must be paid," Mwashetani said.

However CAS Musonik said that the country has been making close to sh.12B per year as the number keeps on growing each year.

"Base Titanium has been doing well for the country as it gives us close to sh. 12 Billion annually although the amount is not constant," he continued.

He also said that already rehabilitation of the land is on going at the site as a way of conversion to manageable levels and once mining is through at the Maumba and Nguluku areas the investors will give back the land to the national government.

"The mining Licence expires next year that is 2022 and since it is the national government that had an agreement with the mining company, the investors will have to return back the land to the national government after their mining activities," he said.

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