'Kenya losing billions in mining cases'

Cabinet Secretary for Mining Dan Kazungu (right) accompanied by his Principal Secretary Ibrahim Mohamed on a familiarization tour of the Base Titanium mining site at Kwale in Kwale County. PHOTO BY MAARUFU MOHAMED/STANDARD

Endless mining court cases and unnecessary disputes are denying county and national governments billions of shillings in revenue.

Mining Cabinet Secretary Dan Kazungu noted the two levels of government and Coast residents were losing huge amounts of money from idle mines following prolonged court cases that had dragged on for years.

"There is need for the parties involved to either address their cases through dialogue or seek out-of-court settlements for the smooth operations of the multi-billion mining enterprise in the region," said Mr Kazungu.

He cited one of the disputes involving Wanjala Mining Company that had been extracting iron ore in Taita-Taveta County and Kishushe Ranching Co-operative Society that had been embroiled in a tussle over a mine, whose operations have since stopped.

The CS noted the bulk of the cases were between land owners and investors, an issue he said could be resolved through dialogue.

Addressing the Press in Voi town yesterday after he inspected the construction of the Sh60 million Voi Gemology Centre, Kazungu said most cases had been dragging in court for more than 20 years.

"It is a massive loss for investors, landowners, the community and the Government when cases take over 20 years to be determined. There is need for a paradigm shift if the local community is to realise meaningful development," said Kazungu. He said the Government would not sit back and watch as mines with potential to generate billions for the economy lay idle as litigants fought endless court battles.