The mining sector has long played a pivotal role in shaping Africa’s economic landscape, and Kenya is increasingly making its mark in this space. With the global demand for critical minerals rising, new technologies emerging, and sustainability taking center stage, Kenya and other African nations are reimagining how mining contributes to their growth. In this post, we explore key trends transforming the mining industry and how they’re affecting Kenya and the broader African context.

1. Technological Advancements are Driving Efficiency

Globally, mining companies are investing $20 billion annually in digital transformation, and Africa is catching up. Technologies like automation, remote sensing, drones, and AI are being introduced across exploration, drilling, and mineral processing.

In Kenya, companies such as Base Titanium have already integrated real-time data analytics and digital monitoring to enhance operational efficiency. The use of Unmanned Aerial Vehicles (UAVs) for geological mapping has reduced exploration times by over 30%, cutting costs and increasing precision in mineral discovery.

As Kenya continues to invest in smart mining, the adoption of technologies will be crucial in tapping into the country’s estimated $62.4 billion worth of untapped mineral resources, according to the Ministry of Mining.

2. Sustainability and ESG are no longer Optional

With global consumers and investors demanding responsible sourcing, Environmental, Social, and Governance (ESG) standards have become a non-negotiable part of mining. In Africa, the World Bank has committed over $300 million to promote sustainable practices in mining through various initiatives, including the Africa Mining Legislation Atlas (AMLA).

In Kenya, the Mining Act of 2016 has pushed companies to integrate sustainability, including mandatory Environmental Impact Assessments (EIAs) and community development agreements. Base Titanium, for example, spends around KSh 120 million (approx. $900,000) annually on community development programs in Kwale County, which include health, water access, and education initiatives.

Furthermore, efforts to transition mining operations to renewable energy sources like solar and geothermal are gaining traction. Kenya’s geothermal potential, over 10,000 MW, offers a clean energy alternative for mining projects, particularly in the Rift Valley region.

3. Artisanal and Small-Scale Mining (ASM) is being Formalized

ASM employs over 8 million people across Africa and contributes over 20% of the continent’s total mineral production, yet it remains under-regulated. In Kenya, the sector involves around 250,000 miners, mostly in gold-rich counties like Migori, Kakamega, and Turkana.

The government is actively supporting formalization through capacity-building programs, licensing, and access to financing. In 2022, the Kenya National Chamber of Commerce and Industry (KNCCI) partnered with the State Department for Mining to train over 5,000 ASM operators on safe mining practices and financial literacy.

Formalization efforts aim to increase the sector’s contribution to GDP, currently estimated at 0.8%, with ambitions to raise it to 10% by 2030 under the Kenya Mining Policy Framework.

4. Exploration and Resource Mapping are Expanding

Mineral exploration across Kenya is on the rise, with heightened interest in rare earth elements (REEs), gold, coal, and titanium. Notably, Kenya is home to the largest rare earth deposits in Africa, estimated at 30 million tonnes in the Mrima Hills area of Kwale County.

In 2023, the Ministry of Mining partnered with the Finnish Geological Survey (GTK) for a KSh 3.2 billion ($24 million) national airborne geophysical survey, aiming to create a comprehensive mineral map of the country. The results are expected to attract foreign investment and help identify strategic minerals critical for the global green economy.

5. Infrastructure Development is Catalyzing Growth

Mining is infrastructure-intensive. Roads, railways, power, and water systems are vital to transporting ore and powering operations. According to the African Development Bank (AfDB), inadequate infrastructure increases mining costs in Africa by up to 30%, limiting global competitiveness.

Kenya is responding with strategic investments. The Standard Gauge Railway (SGR) has eased transportation of minerals from inland mines to Mombasa Port, reducing transit time by 40%. Additionally, the construction of Lamu Port under the LAPSSET corridor will enhance mineral exports to Asia and the Middle East, unlocking mining potential in northern Kenya.

6. Continental Integration and AfCFTA are Opening Markets

The African Continental Free Trade Area (AfCFTA), launched in 2021, is projected to boost intra-African trade by 52.3% by 2030. For mining, this means better access to regional markets, harmonized regulations, and shared infrastructure.

Kenya stands to benefit from cross-border collaborations with mineral-rich neighbors like Tanzania, Uganda, and the DRC. For example, the Lake Victoria Gold Belt, which spans Kenya, Uganda, and Tanzania, holds immense potential for joint mineral exploration, value addition, and exports.

Moreover, harmonizing mining legislation across East Africa will facilitate knowledge transfer and attract large-scale investors, transforming the region into a globally competitive mining hub.

Conclusion: A Promising Future wth the Right Tools

From digitization and ESG compliance to resource mapping and regional integration, Kenya and Africa’s mining sector is evolving rapidly. While challenges like informality, infrastructure gaps, and environmental risks remain, the opportunities are far greater.

With mineral exports contributing KSh 35 billion ($270 million) to Kenya’s economy in 2023 and rising, strategic investment, policy reforms, and regional cooperation will be key to unlocking the full potential of the sector.

Mining in Africa is no longer just about extraction, it’s about innovation, inclusivity, and impact. Kenya is well-positioned to lead this transformation.