The Kenyan mining space is growing and will soon become one of the most attractive investment opportunities in the global sector, but how vulnerable is the industry to systemic, regulatory and institutional corruption?
A report from Transparency International Kenya set out to answer exactly that. The Corruption Risk Assessment in Mining Awards, 2017 focused specifically on the Kitui, Kwale and Taita Taveta counties in Kenya, with the goal of presenting a number of risks and vulnerabilities and more importantly, provide a number of recommendations to foster a more transparent and sound mining industry.
The assessment comes at an opportune time for the mining sector following the enactment of the Mining Act 20162 which repealed the Mining Act 1940. It has enhanced governing of the mining sector including reviewing of the award processes. Further, the Ministry of Mining has developed draft mining regulations and guidelines to support implementation of the Act.
Running the risks
A total of 18 risks were identified throughout the report, risks that broadly focused on clear gaps in the legal and policy framework, access to information, public participation processes and institutional capacity concerns among others.
Some of the key risks include;
Clear and present recommendations
The report looks in depth at the risks facing the Kenyan mining industry and then goes one step further, imploring the collaborative efforts of the Ministry of Mining, the National Environmental Management Authority, the mining companies in Kenya and Civil society organisations.
For the Ministry of Mining, recommendations include: