NAIROBI, Kenya - A growing chorus of policy analysts and industry observers is urging the Kenyan government to suspend the issuance of all new mineral concessions, particularly for recently discovered strategic resources like coltan and rare earth elements. The calls, amplified by a widely discussed column in the Daily Nation on Tuesday, November 4, 2025, argue that Kenya must first establish a robust and independent legal framework, anchored by a credible sovereign wealth fund (SWF), to avert the resource curse that has plagued other nations.

This debate intensifies as Kenya stands on the cusp of a potential mining boom. In January 2024, Mining and Blue Economy Cabinet Secretary Salim Mvurya confirmed the discovery of coltan—a vital component in electronic devices—in six counties. This adds to the globally significant niobium and rare earth deposits at Mrima Hill in Kwale County, estimated by Cortec Mining Kenya in 2013 to have a potential in-ground value of up to USD $62.4 billion. These resources are critical for green energy technologies and modern industry, placing Kenya in a strategic position in the global supply chain.

A History of Halts and Hurdles

The push for a moratorium is not occurring in a vacuum. Kenya's mining sector has a troubled history with licensing freezes and regulatory uncertainty. In December 2019, the government imposed a nationwide moratorium on issuing new mining licenses to conduct a nationwide airborne geophysical survey, revise outdated laws, and clean up the registry. This ban was partially lifted in October 2023 for construction and industrial minerals, while the government stated that licenses for “strategic minerals” would be considered on a case-by-case basis.

However, industry players report that even after the official lifting, the process for acquiring permits remains painfully slow and opaque, hurting investment. The Kenya Chamber of Mines has repeatedly voiced frustration over the lengthy delays, with some prospecting license applications taking up to two years. This bureaucratic inertia has led to a contraction in the mining and quarrying sector by 6.5% in 2023, according to the Kenya National Bureau of Statistics, and risks undermining the government's ambitious goal of increasing the sector's GDP contribution from its current sub-1% level to 10% by 2030.

The Sovereign Wealth Fund Debate

At the heart of the call for suspension is the management of future revenues. The National Treasury has presented a new draft Sovereign Wealth Fund Bill in 2025, following previous attempts in 2014 and 2019. Critics, however, fear the proposed structure lacks the necessary independence from political control. They argue that a true SWF must operate at arm's length from the Executive, with a clear mandate to invest national surpluses for long-term stability and development, not to serve as a discretionary fund for the Treasury to plug budget deficits.

Proponents of the suspension argue that without a transparent and professionally managed fund, the influx of mineral wealth could fuel corruption and fail to benefit ordinary Kenyans. They advocate for a model where the SWF could act as a primary public investor, taking equity stakes in strategic projects like the development of the Mrima Hill deposits, thereby de-risking them for global partners and ensuring the nation retains a significant share of the value.

The Path Forward: Balancing Ambition and Governance

The government's stated policy is to revitalize the mining sector to create jobs and drive economic growth. Since lifting the 2019 moratorium, the Mining Ministry reports it has issued licenses to 95 large-scale firms, projecting an investment inflow of KSh 132 billion based on their submitted work programmes. The administration has also moved to formalize artisanal mining and established a dedicated police unit to combat mineral smuggling, which has been declared an economic crime.

Despite these efforts, challenges persist, including inadequate infrastructure, particularly a reliable power supply for large-scale operations, and a need for greater refining capabilities within the country. The debate sparked by the call to suspend new concessions highlights a critical juncture for Kenya: whether to press ahead with licensing to capitalize on global demand or to pause and ensure the foundational governance structures are strong enough to manage the wealth for the benefit of all citizens. As international interest from powers like the United States and China in Kenya's mineral wealth grows, the pressure to get this right has never been higher.