Last week, I was privileged to attend and participate in the Kenya Mining Investment Conference and Expo, representing my team at The Impact Facility. This year, the annual forum was organised by the National Mining Corporation (NAMICO), in collaboration with the Association for Women in Energy and Extractives in Kenya (AWEIK). NAMICO, a new player in the sector, is the national government’s latest investment arm focused on mineral prospecting, mining, and related activities. It manages investments on behalf of the government and acquires interests or partnerships in ventures associated with exploration, prospecting, and mining projects.

This year’s event theme was “Exploring the role of critical minerals in strengthening foundations and unlocking business opportunities for a sustainable future.” I was invited to participate in a panel on “Unlocking Opportunities for SMEs and Artisanal Miners: Formalizing and Integrating Small Players into Global Critical Minerals Markets,” – an enlightening experience marked by constructive dialogue and a shared sense of urgency to reshape Kenya’s mining sector.

A significant takeaway from the discussions was the critical role of artisanal and small-scale mining (ASM) in Kenya’s critical minerals industry. I highlighted The Impact Facility’s lease-to-purchase work and how we utilise blended finance (grant and investment capital) to not only provide mining equipment to improve the efficiency and productivity of artisanal gold miners but also provide the miners with the relevant technical capacity to improve their environmental, social and governance criteria. Indeed, the leasing work has demonstrated what our team already knows: Miners are great entrepreneurs – just like other small and medium-sized enterprises – who need financial support to invest in their businesses and contribute meaningfully to Kenya’s economy. As we look to the legitimisation of the sector through the issuance of the necessary licenses for their work, formal financial services and venture capital are crucial in the sector to enable their work to scale

Another issue raised is that artisanal and small-scale miners are not just miners; they serve as exploration pathways, uncovering vital resources like copper and other critical minerals. Tapping into their knowledge, built over years of on-the-ground experience, is essential to advancing the mining sector in Kenya. However, the miners require robust support systems, ranging from regulatory clarity to market incentives and technical assistance, for us to tap into their knowledge and experience.

The Mining Act of 2016, which formally acknowledged artisanal and small-scale mining as legitimate mining operations, was recognised as a strong foundation, but gaps remain. For instance, licensing inefficiencies continue to deter growth. NAMICO, as the custodian of Kenya’s 14 key minerals, was called upon to lead the charge in streamlining the licensing process. By simplifying and expediting licensing, NAMICO can encourage mineral extraction activities, accelerating the mining sector’s contribution to the national GDP to the envisioned 10% by 2030, having remained at most 0.9% in the last five years.

During the forum, I emphasised the importance of mapping and understanding Kenya’s artisanal mining space. Formalising and graduating the artisanal sector into small and medium-scale entities would not only boost their productivity but also enhance investor confidence in the sector. It’s high time we recognised that many ASM operators are already operating beyond the artisanal level, and providing a clear pathway for their growth could transform the sector.

The forum served as both a wake-up call and a rallying cry by the stakeholders in the mining sector to NAMICO, Kenya’s new “silent giant.” To unlock the potential of Kenya’s critical and strategic minerals (like gold) and create a sustainable mining future, the sector must adopt fresh, inclusive approaches and a clear vision and strategy for implementing our country’s goals. This will require collaboration, efficiency, and a genuine commitment by every stakeholder with the careful steer of the Ministry of Mining and NAMICO.