The Kenyan government aims to raise the mining industry's share of GDP from less than 1% to 10% by 2030, harnessing vast resources of gold, rare earth elements, titanium, and soda ash. The country's untapped mineral wealth offers significant economic growth and diversification opportunities. Refining and value addition could improve the economic gains, positioning the industry as an important driver of wealth creation. 

A nationwide survey in 2023 identified 970 mineral occurrences, including industrial minerals, precious metals, rare earth elements, and gemstones, highlighting the sector’s vast potential. 

Kenya's geology, shaped over billions of years, holds vast untapped mineral wealth across four key zones. The Archean Nyanzian Craton in the west, dating back over 2.5 billion years, is rich in gold deposits concentrated in Kakamega, Vihiga, and Migori counties. Despite their promise, these lode and alluvial deposits remain underexplored. Additional potential exists for base metals such as copper and zinc, but reserves remain unquantified due to insufficient exploration.

The Proterozoic Mozambique Belt, spanning central and eastern Kenya, is a centre for gemstones and industrial minerals. Taita Taveta produces rubies, sapphires, and garnets, while extensive limestone deposits in the Rift Valley and coastal areas underpin the cement industry. According to the Kenya Chamber of Mines, additional resources, including graphite and wollastonite, exist but remain underdeveloped.

Volcanic activity in the Rift Valley has created one of the most mineral-rich regions. Lake Magadi holds some of the world’s largest soda ash reserves. Its trona deposits, a naturally occurring mineral from which soda ash is derived, are up to 30 metres thick and span 80 sq km. They are projected to last for decades, according to Base Resources. 

Nearby, Mrima Hill in Kwale County boasts niobium deposits estimated at 105.3 million metric tonnes (mt) of ore grading 0.65% niobium, valued at $35bn. The hill also contains rare earth elements (REEs) with an in-ground value of $62.4bn, ranking among the top five global REE deposits. Silica sand, critical for glassmaking, is also present but underexplored.

The sedimentary basins of coastal and northeastern Kenya further diversify the resource base. Kwale County's titanium sands contain 140.8 million mt of ore grading 6% titanium, including ilmenite, rutile, and zircon, essential for global industries. Phosphate deposits in the northeast support agriculture, while gypsum reserves help construction. Coastal salt production is also thriving under favourable conditions, though reserve estimates remain limited.

Additional resources include over 200 million mt of iron ore in eastern and western regions, untapped fluorspar reserves in Kerio Valley, and manganese potential along the coast. The Rift Valley also hosts diatomite and other industrial minerals like kaolin and barite. 

Furthermore, the country has lignite deposits in the Mui Basin and potential uranium resources. Kenya is known for its coloured gemstones, including tsavorite garnet, ruby, sapphire, aquamarine, and tourmaline. 

The mining sector includes several significant active mines. The Kwale Mineral Sands Project, commissioned in 2013, is the country's largest mining operation. Located 50 km south of Mombasa in Kwale County, the mine is owned by Base Titanium, a subsidiary of Australia's Base Resources. 

With reserves of 110 million mt at 5% heavy minerals, it produces around 90,000 mt of rutile, 460,000 mt of ilmenite, and 35,000 mt of zircon annually. These minerals are essential for manufacturing lightweight aerospace alloys and pigments. Additional heavy mineral sand resources along the coast present opportunities for future development.

Gold mining is another key sector. The Kilimapesa Gold Mine, located in Lolgorian, Narok County, and operated by Caracal Gold, the British mining company, has been producing since 2009 and was the first mine to secure a gold mining licence. It holds a mineral resource of 14.05 million mt at 1.56 g/t gold, equating to 705,000 ounces of contained gold. 

Similarly, the Karebe Gold Mine in Chemase, Nandi County, managed by Karebe Gold Mining, a subsidiary of the Maris Group, an Africa-focused investment holding company, operates three mines — Equatorial, Rock Corry, and Boma — using modern techniques to improve efficiency and production.

In Kajiado County, the Magadi Soda Company, operated by Tata Chemicals Magadi, remains Africa's largest soda ash producer. Located near Lake Magadi, this facility has been in operation for over a century and produces around 350,000 mt annually for use in glass manufacturing and detergents.

The Mrima Hill Niobium and Rare Earth Project in Kwale County is owned by Cortec Mining Kenya, a private company incorporated in Kenya. In April 2013, the company was granted a 21-year Special Mining Licence for the project. However, in August 2013, the government revoked all mining licences issued since January that year, including Cortec's, citing irregularities in the awarding process. As a result, the project has not commenced production and remains inactive.

Kenya's mining sector includes robust limestone and cement production, led by Bamburi Cement, Athi River Mining, and East African Portland. Though fluorspar production (formerly 150,000 mt annually) has ceased, plans to revive the mine are underway. Other industrial minerals with development potential include diatomite, vermiculite, baryte, bentonite, gypsum, graphite, and manganese.

Moreover, the country's economic outlook for 2024 and 2025 reflects steady growth and stable inflation amid fiscal challenges. The IMF forecasts real GDP growth at 5.03% in 2024, slightly easing to 5.02% in 2025.

In 2024, the country's GDP is estimated at $116.32bn. However, GDP per capita is expected to decline slightly to $2,187 in 2025, driven by population growth outpacing economic expansion. Its population is estimated at 52.44 million in 2024.

Inflation is expected to remain stable, at 5.12% in 2024 and 5.15% in 2025. Fiscal challenges remain, with general government gross debt projected to rise from 69.87% of GDP in 2024 to 72.36% in 2025. 

Nairobi, Kenya's capital and largest city, has an estimated population of around 5.5 million.

The country's President, William Ruto, has been in office since 13 September 2022. He leads the United Democratic Alliance party. The presidential term is five years, with the next election set for 2027.

According to the Institute of Economic Affairs (IEA), a Nairobi-based think tank, annual revenues from mining, excluding oil and gas, could reach around $3bn. This estimate includes royalties, taxes, and fees from mineral extraction and exports.

In 2022, mineral production generated KES35.23bn (around $272mn), with titanium ore minerals accounting for 80% of the revenue. Total output rose to around 399,022 mt in 2023, up from 326,805 mt in 2021. Gold production showed variability, with 565 kilograms produced in 2022, compared to 292 kilograms in 2021. As of 2024, the mining sector contributes around 0.7% to GDP.

The country is a significant exporter of minerals, with titanium ores — ilmenite, rutile, and zircon — forming a large share of exports. In 2020, 1.7 million mt of metals and minerals were shipped, led by industrial minerals at 884,000 mt, followed by speciality metals at 472,000 mt.

In 2022, China was the largest destination for mineral exports, valued at $164.6mn and representing 70.42% of total export value. Uganda purchased $100.5mn worth, while the United States imported $92.7mn.

Most exports are facilitated through the port of Mombasa, the largest and busiest seaport, ensuring access to global markets.

In the 2023 survey, Kenya was ranked 46th globally in the Fraser Institute's Investment Attractiveness Index, which assesses mineral potential and policy factors influencing mining investment. Within Africa, Kenya secured the 6th position, surpassing notable mining countries such as South Africa, the Democratic Republic of Congo (DRC), and Tanzania. Ranked 15th globally, Botswana was the highest-ranked African nation in the index.

The formal mining sector employs around 12,000 individuals, according to the Kenya National Bureau of Statistics. The artisanal and small-scale mining sector supports over 250,000 miners, with an estimated one million people depending on it for their livelihoods. 

Artisanal and small-scale gold mining is prevalent, particularly in western Kenya. Historically, the gold extracted has been sold in raw form, with minimal local refining. Recent initiatives — including constructing a gold refinery in Kakamega County — aim to change this by enabling local processing and value addition. 

Furthermore, Kenya is actively implementing reforms to position its mining sector as a critical driver of economic growth. Central to these efforts is the government's Strategic Plan 2023–2027, which prioritises modernisation and investment to unlock the country's mineral potential. 

In March 2023, a comprehensive geophysical survey identified 970 mineral occurrences across 15 counties, including Kitui, Embu, Kilifi, Isiolo, Kwale, Homa Bay, West Pokot, Turkana, Samburu, Elgeyo-Marakwet, Nandi, and Kericho, providing critical data to guide exploration and highlight areas of high potential.

The government is updating the national mineral map based on the survey results to create a detailed overview of mineral locations, types, volumes, and values. This map serves as a blueprint to attract investors and enable more focused exploration.

The government is also focused on value addition to maximise economic returns. Policies have been introduced to restrict raw mineral exports and promote domestic processing to create jobs, improve skills, and increase revenue. Initiatives like the planned gold refinery in Kakamega County highlight this approach, focusing on transitioning the sector from exporting raw materials to producing refined products.

Several companies are already involved in refining in a limited capacity in the country. The Kwale Mineral Sands Project is a notable example of local processing. The operation extracts and separates ilmenite, rutile, and zircon for export; however, final refining into finished products occurs abroad. 

Companies such as Krystalline Salt Limited operate salt works, refineries, and packaging facilities in areas like Gongoni, producing refined salt for domestic and regional markets, showcasing successful local value addition.

The limited local refining capacity is attributed to high capital investment requirements, technological constraints, and regulatory challenges.

Several foreign companies have recently announced significant investments in the mining industry. In October 2024, Shanta Gold Kenya, a subsidiary of Shanta Gold, a UK-based company listed on the London Stock Exchange's AIM market, announced plans to invest around KES17.71bn ($140mn) in new gold mining projects across Siaya and Vihiga counties. The proposed open-pit mining operations are expected to cover 175 hectares in Ramula, East Gem (Siaya County), and Mwibona (Vihiga County). 

In May 2024, Abu Dhabi's International Holding Company (IHC) expanded its African mining ventures through its International Resource Holdings (IRH) subsidiary. IRH entered into advanced discussions to mine various metals in Kenya, aligning with IHC's strategy to invest around $1bn in mining acquisitions within the year. 

The Kenyan government is also seeking strategic partnerships to revitalise critical mining operations. For instance, in February 2024, a KESbn ($38mn) agreement was signed with the UK’s Soy-Fujax Mining Company to restart fluorspar mining in Elgeyo Marakwet County.

In October 2023, the government lifted a moratorium on issuing new mining licences that had been in place since December 2019. This decision is expected to stimulate investment in the mining sector and attract new entrants. 

The mining industry operates under a legal framework that ensures stability and attracts investment. The Mining Act 2016, aligned with the Constitution of Kenya, 2010, provides a comprehensive framework for prospecting, mining, processing, refining, and transporting minerals.

Supporting regulations include the Mining (Licence and Permit) Regulations of 2017, which establish transparent licensing procedures, and the Mining (Royalty Collection and Management) Regulations of 2024, issued on 3 July 2024, which standardise royalty collection and management to improve revenue and ensure equitable benefit sharing. The 2016 Act replaced outdated laws from the 1940s, creating a more investor-friendly environment. 

The fiscal framework includes royalties, corporate income tax, withholding tax, and value-added tax. Mineral rights holders pay royalties based on gross sales value, as specified in the 2024 regulations. Corporate income tax rates are 30 % for residents and 37.5 % for non-residents, while payments to non-residents, such as dividends and royalties, incur withholding tax at varying rates. Goods and services, including mining-related ones, are subject to a 16% VAT unless exempted or zero-rated.

Moreover, the mining industry faces various challenges that affect its growth and development. Inadequate infrastructure — including poor transportation networks and limited access to reliable electricity — hinders operations, particularly in remote areas. Regulatory and policy uncertainties, such as frequent policy changes and licensing delays, create an unpredictable environment for investors. 

Environmental concerns are another issue, with mining activities causing land degradation, deforestation, and pollution, which harm ecosystems and local communities. Artisanal and small-scale mining remains informal mainly, leading to unsafe practices, environmental damage, and difficulties in regulation. Conflicts have also been reported between mining companies and local communities over land rights and benefit-sharing.

Mining has historically impacted the environment through land degradation caused by open-pit mining and improper waste disposal, resulting in soil erosion and loss of arable land. Water pollution from mining effluents has contaminated water bodies, affecting aquatic life and human health. Deforestation due to vegetation clearing for mining activities has also contributed to biodiversity loss.

In May 2024, an illegal gold mine collapsed in the Dabel area of northern Kenya, killing at least five miners. The collapse, attributed to a landslide, underscored the risks associated with unregulated mining activities.

The mining sector faces a critical skills shortage, particularly in geology, mining engineering, and mineral processing. This talent gap limits efficient exploration, extraction, and value addition, often requiring reliance on expatriates or costly in-house training.

Limited specialised education and outdated training facilities exacerbate the issue, leaving graduates ill-prepared for industry demands. The lack of skilled talent also hinders the adoption of modern mining techniques, reducing Kenya’s competitiveness in attracting investment and fully capitalising on its resources.

Kenya's mining sector holds significant economic promise, underpinned by untapped mineral wealth, ongoing reforms, and increasing investor interest. Updated mineral mapping, value-addition policies, and strategic partnerships offer opportunities for economic growth and job creation. However, addressing infrastructure gaps and skills shortages will be essential for the sector to realise its full potential.