Kenya Gold Bill Stalls at Committee Stage Since 2025

Kenya · MINING

What the Gold Processing Bill actually does

The Gold Processing Bill, 2023 is formally National Assembly Bill No. 46 of 2023. It was published in Kenya Gazette Supplement No. 132 on 11 August 2023.

The bill seeks to establish a gold processing corporation to license and regulate the sector. Clause 4 covers collection, smelting, fabrication, sampling, registration, monitoring and transport of gold.

Clause 5(4) covers exploring or exploiting gold without a permit. The maximum is a fine of ten million shillings, about US$77,400, or ten years in jail.

Clause 35 allows an initial processing licence of 25 years, while Clause 43 caps any renewal at 15 years.

Why Kenya wants more control over gold

The bill’s logic aligns with the Mining Act, 2016, which regulates prospecting, mining, processing and transport of minerals. Royalties are shared 70 percent national government, 20 percent county government, and 10 percent local community.

Kenya has also updated mining governance with new regulations on health, safety and explosives licensing in 2026. The Gold Processing Bill fits into a broader effort to formalise the sector and make royalties and taxes easier to enforce.

What MPs said during debate

Sponsor Bernard Shinali, MP for Ikolomani, argued gold processing has boosted exports and revenue in other countries including Sudan. He spoke during the Second Reading on 20 February 2025.

Migori MP Fatuma Mohamed said licensing is prohibitive. She cited fees raised from 20,000 to 500,000 shillings and applications taking up to four years.

No vote count is on the public record.

Parliamentary progress and current status

The bill had its First Reading on 18 October 2023. The Second Reading took place on 19, 26 and 27 February 2025.

The Committee of the Whole House stage is pending, and the Third Reading has not been put. The bill has not lapsed, but the Assembly returned from recess in late July 2026 with no movement recorded.

What Kenya earns from minerals now

Kenya collected 3.8 billion shillings in mineral royalties in 2025. That was up 18.8 percent from 3.2 billion shillings in 2024.

Business Daily Africa reported the figures on 11 August 2026. They cover all minerals, not gold alone.

The National Treasury also released 2.9 billion shillings in royalty arrears to counties. The backlog had built up since 2016.

Thirty-two mineral-rich counties share that money, Kakamega among them. No gold-only royalty or export figure is published for any of them.

Business Daily Africa describes the royalty split differently from the 2026 regulations. It reports 70 percent to the national fund and 30 percent to affected counties.

Ten of those 30 points go to affected residents. Both descriptions cover all minerals rather than gold.

That gap matters for the bill. Parliament is being asked to license a sector whose output is not separately measured.

What to watch next on the Gold Processing Bill

The next milestone is the Committee of the Whole House stage, not presidential assent. After that come the Third Reading, possible transmission to the Senate, and then assent.

Clause 47 also covers obstructing the Board or Corporation. It proposes a fine not exceeding 500,000 shillings, about US$3,870, or five years in jail.

The bill’s fate will determine whether Kenya captures more domestic value from gold.

Frequently Asked Questions

What is the Gold Processing Bill in Kenya?

The Gold Processing Bill, 2023 is National Assembly Bill No. 46 of 2023. It would create a legal framework for processing, licensing, smelting, transport and monitoring.

What penalties does the Gold Processing Bill propose?

Working gold without a permit carries a maximum fine of Sh10 million, about US$77,400. The penalty can also run to 10 years in jail, or both.

Obstructing the Board or Corporation carries a maximum fine of 500,000 shillings, about US$3,870, or five years in jail.

How are mining royalties shared in Kenya?

Kenya’s existing mining framework splits royalties three ways. The national government takes 70 percent, counties 20 percent and local communities 10 percent.

Sources

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