The High Court has quashed new regulations introduced by the State to revamp the mining sector, including an increase of application fees for large-scale prospectors and miners nine-fold from Sh50,000 to Sh500,000 for some minerals.
The judgment potentially denies the government millions of shillings in anticipated revenues from the new rates on royalties, licences, and taxes on mineral extraction.
The court said the Mining Regulations 2024, which comprised five key regulations, were unconstitutional as the principle of public participation was not complied with during the regulation's enactment.
“The regulations are collectively unconstitutional and in violation of the Constitution. The regulations are invalid and unenforceable. The mining regulations 2024 are quashed for violating Article 10 of the Constitution,” said Justice Bahati Mwamuye.
Article 10 mandates public participation in policymaking, transparency, and accountability for all state organs.
The Kenya Chamber of Mines (KCM) challenged the new development in court, describing the regulations as unjust and detrimental to the mining industry. They accused the Ministry of introducing the changes without considering industry players’ input.
But the Ministry said the regulations were central to catalysing growth and development of Kenya’s mining sector and to curb illegal mining, which was described as widespread and leading to significant financial losses for the country.
The Ministry said the rules were meant to address issues like unlicensed mining in the country and illegal exploitation of strategic minerals.
It also said the rules were meant to ensure that the industry contributes positively to the economy and the environment.
