Why State could pay billions to mining firms

Kenya: The Government could be forced to pay billions of shillings in compensation to mining companies whose licences were revoked by Mining Cabinet Secretary Najib Balala. Legal experts say this is due to the State’s disregard of bilateral agreements on investment.

According to an international law firm King & Spalding in the report titled, “Recent Developments: Kenya—What legal Options are Available to Mining companies?” says Kenya could be forced to pay the affected mining firms. This is because by cancelling their licences, the Government went against bilateral investment treaties it entered with other countries.