Hustler Fund could be a strategic boost for the mining industry

Kenya is endowed with 77 types of minerals, but only nine are used to compute the value of the sector.  The mining industry is capable of contributing up to six per cent of Kenya’s Gross Domestic Product (GDP), and has the potential to grow up to 12 per cent.

In the recent past, the country has discovered a new mineral, Coltan, which is critical in the manufacture of electronics.

The industry is dominated by MSME artisanal miners, the ‘real hustlers’. Recent records indicate there are about two million artisanal miners in Kenya, with the youth and women forming the majority.

Outdated equipment

Due to lack of financing, these miners use risky homemade and outdated equipment and methods. An attempt was made in 2012, through the Gold Mine Act, to support them, but unfortunately, this Act has not been operationalised to date.

An effort to operationalise it now — without amendments — would not capture the entire industry, as it focused more miners of gold and a few other minerals.

The Hustler Fund can be used to 'bait' and onboard them all.  The government can start buying the minerals from the artisanal miners at the market price for local manufacturing and export markets. This would curb mineral smuggling and increase government revenues. This strategy is already working in such countries as Rwanda, South Sudan and Ghana.

This strategy would also help in strengthening the Kenyan currency against the dollar, as the proceeds would become part of Central Bank reserves.

Formalisation of the sector would also improve mining processes, methods and equipment, attract foreign investors and expand the country’s GDP.

There is a ready local and international market for the minerals that Kenya is endowed with and tapping it would be great for the economy.

Mr Kuria, a global mining consultant, is the chairman of the Mineral Rights Board.