# 17.	Mining Act, No. 12 of 2016

<figure><img src="/files/rxn4xCcuYSkzjejGxvyl" alt="" width="255"><figcaption></figcaption></figure>

Quick Link: <https://new.kenyalaw.org/akn/ke/act/2016/12/eng@2022-12-31>

·         This is an Act of Parliament that applies to minerals and provides for prospecting, mining, processing, refining, treatment, transport and any dealings in minerals. It repealed and replaced the Mining Act of 1940 (Cap 306).

·         Section 183 of the Act provides that the holder of a mineral right shall pay a royalty to the State in respect of the various mineral classes won by virtue of the mineral right. It is the Cabinet Secretary who is empowered to set the applicable rates payable.

·         In this regard, the Ministry of Mining started levying a two percent royalty on construction materials in 2014, thereby increasing the cost of quarry stones, concrete blocks, hardcore, ballast and sand which are considered minerals or ‘mine waste and tailings’ under the Act. Cement, which is a key construction material, is made up of lime, silica, alumina, and magnesia-which are included in the First Schedule to the Act as minerals. Consideration can be given to exempting minerals that either form part of construction materials or are used in the manufacture of construction materials from being liable for royalties to reduce the cost of construction materials for affordable housing, or using the levies collected towards investment in infrastructure or other financing for affordable housing.


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