KAM Engages PS Mining on Royalties, CESS

Thursday, 01/08/2024: The quarry and mining sub-sector at KAM comprises over 25 members, most of whom are based in Machakos County, directly employing over 5,000 people.

KAM and its members in the mining and quarry sub-sectors engaged with Principal Secretary State Department for Mining Mr Elijah Mwangi. The discussion focused on the Ministry’s recent decision to demand payment of royalties dating back to 2019. With the newly gazetted regulations, the sub-sector sought clarification on their implementation.

Concerns were also raised about the cumulative effect of CESS, which results in substantial taxation at both county and national levels. Manufacturers also expressed concerns regarding the approval process for permits to use explosives in their mining operations.

After in-depth deliberations, it was agreed that royalties would be charged on finished products rather than raw materials. Regarding CESS, PS Elijah urged members to regularize the payment of royalties, which would allow counties to receive their equivalent share and eliminate the need for charging CESS.

Kenya Association of Manufacturers (KAM) values the ongoing dialogue with the State Department for Mining, which is crucial for supporting the country’s economic activities, particularly in the mining sector.