Engineers warn Kenya is losing billions through raw mineral exports

Institution of Engineers of Kenya (IEK) President, Eng Shammah Kiteme. [File, Standard]

Engineers have raised concerns about the state of Kenya's mining sector, warning that the country is losing economic value by exporting raw minerals.

Speaking during the Mining Engineers Society of Kenya (MESC) gala dinner in Nairobi, Institution of Engineers of Kenya (IEK) President, Shammah Kiteme, criticised the long-standing model that allows multinational companies to extract minerals locally, process them abroad and remit what he described as "unquantified revenue" in taxes and royalties.

Under the current framework, Kenya earns about four per cent in royalties from mining operations, a figure Kiteme says is further diluted once shared among stakeholders.

"What are you doing when mining licences are issued to foreign firms so that we only get royalties? We get about four per cent, and even that is shared out," he said, questioning a system where profits largely benefit shareholders based overseas.

"What are you doing when our gold benefits shareholders seated in London, as we only take a share of taxes and royalties?"

Kiteme argued that Kenya has sufficient human capital and technical expertise to mine and process minerals locally, a shift he said would unlock thousands of jobs and strengthen the economy.

"Why can't we mine this gold locally, process it in Kenya and export? How many job opportunities can we create if we go this route, as opposed to a situation where we only get royalties?" he posed.

He cited abandoned and underutilised mineral sites as evidence of missed opportunities, pointing to titanium mining and the vast coal deposits in the Mui Basin.

"Coal deposits worth about Sh4 trillion are lying unexploited in Mui Basin as we squabble as a country," he said, noting that the resource could significantly transform livelihoods and local economies.

According to Kiteme, a well-managed mining sector could help finance government development projects without increasing public debt.

"The coal that we have in this country can give us Sh5 trillion and pay for development without borrowing a single shilling," he said, urging engineers to move beyond technical roles and actively engage in advocacy to push for reforms in the extractive sector.

"If you want change and you want it badly enough, it can happen. But someone must cause it to happen," he said.

Kiteme further warned that foreign powers are increasingly positioning themselves to secure Africa's raw materials, often prioritising extraction over local industrialisation.

"Everyone wants what we have for their own benefit. They don't care about us. They care about extracting the minerals and flying with them to Western Europe and the United States," he said.

He pointed to policy shifts in some African countries that have restricted the export of raw materials in favour of domestic processing, urging Kenya to adopt a similar approach.

"We have electrical engineers, mechanical engineers and mechatronics engineers. We can mine here, we can process here, and we can export processed minerals," he said.