Kenya’s Mining Industry Still Under-Developed Even as Gold Earnings Hit Over KES 1.5 Bn

By Isaac Korir / November 8, 2018




The mining industry in Kenya faces lots of challenges and the sector remains under-developed. Although the government has taken baby steps in trying to ensure that the GDP from mineral resources increases, it still has a long way to go.

The sector has the potential to substantially elevate Kenya economically. Nevertheless, amidst the challenges and under-exploitation of the vastly available resources, the industry seems to be growing at a gradual pace.

Data from the 2018 Economic Survey show that some segments of the mining industry are showing improvements. According to the survey, the extraction of Titanium ore rose by 1.5 percent from 588.4 thousand tons in 2016 to 597.0 thousand tons in 2017.

Titanium ore concentrates including Ilmenite, Rutile and Zircon registered negligible growths of 0.9, 4.3 and 1.0 percent, respectively during the period under review.

Meanwhile, the output of rough gemstones dropped by 76 percent from 518.2 thousand tons in 2016 to 124.3 thousand tons in 2017 whereas the quantities of crushed refined soda reduced from 741 thousand tons in 2016 to 539 thousand tons in 2017, representing a 27.3 percent decrease.

The country has no cause for celebration yet. Other sectors are easily surpassing the total output the mineral sector is producing, which the survey noted a 2.1 percent increase from 23.3 billion shillings in 2016 to 23.8 billion shillings in 2017.

Decreased earnings from gemstones, salt, and fluorspar are among the reasons attributed to the drop and low growth value regardless of the high mineral prices. Gold earnings more than doubled 652.5 million shillings in 2016 to more than 1.5 billion shillings in 2017, recording a 135.03 percent in growth.

Earnings from titanium ores also increased by 2.3 percent from 13.3 billion shillings in 2016 to 13.6 billion shillings in 2017.

The quantity and value of all the minerals in the country’s industry are as illustrated below.

The minerals show a little improvement over the years but overall, Kenya is on the path to earning trillions from the 77 mineral types it produces only if the sector is given utmost attention. Meanwhile, Tullow Oil in Turkana is set to make the first crude shipment early 2019.





More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (250)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (110)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950