The legal character of mineral rights under the new mining law of Kenya

Abstract

Kenya enacted a new mining law in May 2016. The law aims to position Kenya as the most attractive destination for mining investment in Africa and to enhance the country’s competitiveness globally. A key feature underpinning the new legal framework is the emphasis on security of mineral rights. Secure mineral rights are considered to be a critical component of a competitive mining investment climate. One aspect of security of mineral rights is the legal character of the mineral rights or titles that may be held by or granted to prospective applicants. The right to explore for and produce a mineral in Kenya is conferred by a mineral right over a defined area and over a period which is granted pursuant to the mining law. In this context, investors are interested in knowing the nature of the mineral rights which the title confers upon them and the circumstances under which the mineral right may be terminated, and the remedy available to the holder. This article discusses the legal character of mineral rights under Kenya’s new legal framework. It focuses, in particular, on the protection that the mining law offers to holders of mineral rights.