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{
"id": 1008208,
"url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1008208/?format=api",
"text_counter": 166,
"type": "speech",
"speaker_name": "Maara, JP",
"speaker_title": "Hon. Kareke Mbiuki",
"speaker": {
"id": 79,
"legal_name": "Japhet M. Kareke Mbiuki",
"slug": "japhet-kareke-mbiuki"
},
"content": "(b) Rockland Limited, which covers 0.799 square kilometres and specialises in mining gemstones. The licence is valid from 1991 to 2023 and the company is domiciled in Taita Taveta County. (c) Universal Resource International Limited, which covers 1.8 square kilometres and specialises in mining industrial minerals and manganese. Its licence was granted in 2014 and will be expiring in 2040. The company is based in Taita Taveta. Hon. Speaker, among the three companies with mining licences in the Coast region, only two are in production as stipulated in this Report together with their shares of loyalties paid to the national Government. However, there are numerous small-scale mining permits for gemstones, whose loyalty contribution is on average about 20 kilometres annually. I have a table here, which is indicating the amount of loyalties paid by Base Titanium and Rockland Limited from 2016 to 2019, and it is in the Report, which I will table shortly. On whether the mineral loyalties were being paid prior to the Mining Act 2016, how much each company had paid by then in the Coast region and whether the community will get a share of this loyalty, I will respond as follows: Legal Notice No.187 of 2013 imposed loyalty payments for all the minerals sold prior to this Notice. Only holders of the mining leases were liable to pay loyalties as one of the conditions in the lease. For instance, we have Base Titanium - which I have given the tabulation of how much they paid in 2014 - which paid Kshs171,000 and Kshs307,000 in 2015. Hon. Speaker, on the tabulation of actual shares of loyalties in shillings going to the three main beneficiaries as per the Mining Act 2016, I wish to respond as follows: Loyalties are classified as national Government revenue paid to the Consolidated Fund. Currently, there are no provisions for direct sharing of loyalties. However, the Mining Act 2016 provides for a loyalty sharing formula of 70 per cent to the national Government, 20 per cent to the county governments, and 10 per cent to the mining community. To enable sharing of the loyalties, the Government, through the State Department for Mining, drafted Minerals Loyalty Sharing Regulations under the Public Finance Management (PFM) Act. These regulations are still under consideration by the National Treasury. Currently, loyalties are not being shared in absence of the enabling legal instrument. Sharing of loyalties will commence once the National Treasury publishes the regulations. On a clear roadmap and actual date that the Ministry shall opersonalise the share of loyalties, more so when we expect the communities and the county allocations to be released from the central account in the Central Bank of Kenya (CBK), I wish to respond as follows: A loyalty sharing roadmap will be developed once a loyalty-sharing framework is established by way of publication of the regulations by the national Government. So, as soon as these regulations are put in place, the roadmap will be communicated. Hon. Speaker, the quantities of iron ore that have been extracted annually in Kishushe Location, Wundanyi Constituency for the last 10 years, the quantity of sales or export of iron ore extracted from Kishushe by RK Sanghani and Wanjala Mining Company for the last 10 years, have been tabulated as per the data which I will table. However, due to the protracted dispute between Wanjala Mining Company Limited and Kishushe Ranching Cooperative Society Limited - who are the landowners on land ownership consent - no iron ore transportation and export were done for the period from 2015 to 2017. There is a table which is annexed in this Report. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}