Mining communities in Kenya are challenging the new mineral royalty sharing formula gazetted this year, demanding a larger share. The Mining (Mineral Royalty Sharing) Regulations, 2026 allocate 70% to the national government, 20% to counties and 10% to host communities. Miners complain that the 10% share does not reach communities directly.
The Mining (Mineral Royalty Sharing) Regulations, 2026, based on the Mining Act 2016, took effect in January to regulate mineral revenue management.
The formula faces criticism for not sufficiently prioritising host communities. Hesborn Musambayi, a miners' representative from Rosterman gold mining company in Kakamega, said, “We cannot allow for the community to get 10 per cent. That 10 per cent is not even given to the community directly. It goes to the county government, which then uses it for development. Even when we ask for our community share, we never get it.”
George Mbavi, chair of miners at Rosterman, added, “The 10 per cent should be given directly to the community through registered groups or administrations, whichever way. But saying it should go to the National Treasury and be disbursed through the development fund, we feel we are being taken advantage of.”
The National Assembly Committee on Delegated Legislation stated the formula fails to reflect mining's direct impacts on locals, urging a larger community share ahead of counties and a smaller national portion.
Mining Cabinet Secretary Hassan Ali Joho defended the framework as structured and accountable, while noting, “The Treasury sometimes takes too long to disburse funds to the community. We want to see timely disbursements.”