The Council of Governors in Kenya has unearthed the major risks in the extractive (Mining) industry which needs to be addressed by the national government to strengthen policy and legislative framework in the sector.
Council of Governors Chairman Josephat Nanok said the recent Oil discovery in Turkana, and new discoveries in the mining sectors such as Titanium in Kilifi and Coal in Kitui County are seen as a boost to the country’s economy.
“These discoveries provide a chance to alleviate poverty and create broad-based development and improved standards of living across the country through job opportunities,” Nanok said.
“However, he said poverty is severe in some of the areas where oil, gas, and Minerals have been discovered and in areas like Turkana the conflicts incidents are high,” he continued.
Nanok was addressing Extractives Forum Program for governors at Ocean Beach Hotel in Mombasa on Friday.
He said extractive industries generate important revenues for county governments through taxes, royalties and production shares but so many other benefits or risks could arise from the activities.
“International experience points to challenges which are often faced by resource-rich developing countries in translating mineral wealth into peace and prosperity,’’ he said.
He said the national government is committed to adopting a progressive policy and legislative frameworks, transparency in licensing procedures, publication of contracts and environmental and conservation requirements in line with international standards.