Royalties in the Red: Kwale, Kilifi, Kajiado Await Ksh 2 Billion Payback From The National Government

Kwale County mining stakeholders have voiced concerns over the prolonged delay in disbursing mining royalties to counties. Base Titanium, the country’s largest sand mining company, along with other firms, has paid over Ksh 2.9 billion in royalties to the national government since 2016. However, 32 counties, including Kwale, Kilifi, and Kajiado, are still waiting for their share. Kwale alone is owed Ksh 1.2 billion, Kilifi Ksh 350 million, and Kajiado Ksh 660 million.

Speaking at a forum on fiscal management and mineral royalties in Diani, Kenya Human Rights Commission Deputy Director Cornelius Oduor expressed frustration over the government’s failure to disburse the funds. He noted the delay has strained local governments and communities that depend on the royalties for development projects. “The withheld payments have hindered counties’ ability to deliver crucial services, especially in areas reliant on mineral revenue,” Oduor said.

The forum, organized by the Kwale Mining Alliance and KHRC, brought together stakeholders to discuss ways to accelerate the disbursement. Oduor emphasized the negative impact on infrastructure, education, healthcare, and overall community welfare. He urged the government to expedite the release of the royalties and ensure transparency to avoid further delays.

Kwale Mining Alliance Coordinator Kashi Jarmaine criticized the government for violating the 2016 Mining Act, which outlines the royalty-sharing framework: 70% for the national government, 20% for counties, and 10% for local communities. He demanded accountability and questioned why the National Treasury had not released the funds, despite mining companies fulfilling their obligations.

Gombato-Bongwe MCA Tumaini Mwachaunga highlighted the stalled development projects in Kwale due to the delay. He stressed that essential infrastructure and community programs had been postponed, impacting residents’ livelihoods. Similarly, Principal Administrative Secretary Hassan Mwadzugwe explained that the county had to resort to a supplementary budget due to the missing royalties, calling for their immediate release to allow the county to implement its planned projects.

Both Oduor and Jarmaine emphasized the need for a stronger framework to safeguard the royalties and ensure they benefit the communities they are intended for.