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Kenya mulls regulations on local content for mining firms

27 September 2016, 13:15

Nairobi - Kenya said on Monday regulations on local content for mining firms will be in place by the end of the year.

Mining Cabinet Secretary Dan Kazungu told a media briefing in Nairobi that the rules will require mining companies to source all inputs from local communities or from within the country.

"The regulations are borrowed from international best practice where mining firms are required to procure locally where their mining activity is based," Kazungu said during a media briefing on the upcoming Kenya Mining Forum that will take place from Wednesday.

"The mining firms will only be allowed to source from outside Kenya if the goods and services are not available in the country," he said.

In May, Kenya's new mining law came into force and replaced the existing one that has been in place since the 1940s. The new law requires that all mining operations benefit local community and country at large.

Government data indicates that the mining sector currently contributes one percent of the Gross Domestic Product (GDP).

"We want to increase the figure in order to further diversify Kenya economy, which is heavily dependent on agriculture, manufacturing and services," Kazungu said.

The mining ministry also plans to launch the airborne mineral survey by the end of December. A team of 16 top geologists have already been established to spearhead the process of identifying a contractor to perform the airborne survey.

- Xinhua


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