(NAIROBI, KENYA) – Counties have received KES2.9 billion ($22.3 million / £17.6 million) in long delayed mineral royalties, the National Treasury has said, marking a boost for devolved units and communities around mining sites.
The Treasury did not name beneficiary counties, but previous records showed that 32 mineral rich counties were marked for royalty payouts. They include Kwale, Makueni, Taita Taveta, Homa Bay, West Pokot, Kericho, Kakamega and Elgeyo Marakwet among others.
The Treasury said on Tuesday that it disbursed 100% of the KES2.9 billion allocation for mineral royalties to eligible counties. The full disbursement reflects the government’s commitment to timely transfer and supporting county governments in delivering devolved functions, it said.
The Treasury said it continues to coordinate the transfer of these funds to eligible county governments to facilitate equitable sharing of benefits arising from mineral resources.
Section 183 of the Mining Act, 2016 provides that any holder of a mineral right shall pay royalties to the State in respect of the various mineral classes won under the mineral right. The revenues arising from mineral royalties would then be shared among the national government, beneficiary counties and communities.
According to the Mining Act, royalties should be distributed so that 70% goes to a consolidated fund and 30% to affected counties. Out of the 30%, affected residents should get 10% directly.
The sharing of mineral wealth had not been done over the years amid a legal gap. While a framework for sharing the earnings among national and county governments and communities was developed, the Attorney General’s office in December 2022 advised the development of subsidiary regulations to the Mining Act to provide the mechanism for transferring mineral royalties to communities.
Data by the Mining ministry shows Kenya’s mineral royalties rose 18.8% in 2025, indicating a recovery largely driven by tighter regulation of quarries and construction materials following the exit of Australian miner Base Titanium.
Royalties rebounded to KES3.8 billion ($29.2 million / £23 million) in 2025 from KES3.2 billion ($24.6 million / £19.4 million) in 2024, ministry data showed.
Despite the recovery, the 2025 earnings remain below the recent peak in 2022 when collections stood at nearly KES5 billion ($38.5 million / £30.3 million) before easing to KES3.7 billion ($28.5 million / £22.4 million) in 2023 and dropping further to KES3.2 billion in 2024. This shows the lingering impact of the shutdown of large scale operations in Kwale.
The dip in 2024 followed the depletion of titanium ores, which marked the end of one of the country’s most significant mining operations. Over its 11 year run, Base Titanium exported about 5.2 million tonnes of mineral sands, including 3.89 million tonnes of ilmenite, 804,000 tonnes of rutile and 295,000 tonnes of zircon, alongside smaller quantities of other minerals.
Its closure left a gap in royalty collections, exposing Kenya’s reliance on a handful of large scale extractive projects. Ministry officials say the 2025 recovery reflects a deliberate policy shift to broaden revenue sources, particularly by formalising previously under regulated quarry activities.