THE GOLD PROCESSING BILL (NATIONAL ASSEMBLY BILLS NO. 46 OF 2023)
Status Timeline
Proposed
Active now
Public Review
Pending
Debate
Pending
Executive
Pending
Final
Pending
Creation of the Gold Processing Corporation
Establishes a centralized body corporate headquartered in Nairobi to oversee the collection, sampling, refining, and transporting of gold. The Corporation will regulate national standards and facilitate international accreditation for gold refineries and testing laboratories.
New 25-Year Gold Processing Licences
Introduces a processing licence to be granted for a minimum term of 25 years, with renewals limited to 15 years. Under Clause 29, applications must include:
- A feasibility study
- A plan for the procurement of local goods and services
- Training and employment proposals for Kenyan citizens
- Socially responsible investments for the local community
New Obligations for Licence Holders
Under Clause 37, licence holders face key operational mandates, including:
- Commencing processing operations within six months of receiving the licence
- Signing community development agreements
- Granting the government the right of first refusal on processed gold at market price
Severe Penalties for Unlicensed Operations
Prohibits gold exploration and exploitation operations without a valid permit. Under Clause 47, non-compliance is subject to:
- A fine of up to ten million shillings
- An imprisonment term of up to ten years
- Or both
Bill No.
No. 46 of 2023
Gazette No.
—
Sponsor
Senate Majority Leader
Background
The Bill seeks to address the lack of an independent institutional and regulatory framework dedicated exclusively to the gold processing sector. Currently, the sector operates without a centralized body to manage national standards, international accreditation, and the monitoring required for gold refineries and laboratories. To resolve this, the Bill legally separates gold exploration and processing from the existing Mining Act to create a specialized regulatory environment.
Key Amendments
- Amendment of the Mining Act, Cap. 306: Excludes all matters relating to the exploration, exploitation, and processing of gold from the scope of Cap. 306, establishing this Bill as the primary legislation for the gold sector.
- Establishment of the Gold Processing Corporation: Creates a new regulatory body corporate managed by a Board comprising a Chairperson, Principal Secretaries from relevant ministries, private sector representatives, a Council of Governors nominee, and a competitively recruited Director-General.
- Power to Make Regulations: Empowers the Cabinet Secretary responsible for mining, the Cabinet Secretary responsible for standards, and the Corporation to make regulations governing gold processing, national standards, laboratory operations, and licence administration.
New Obligations
- Licensing Requirements (Clause 29): Applicants for a processing licence must submit a feasibility study and a comprehensive plan outlining proposals for utilizing local goods and services, employing and training Kenyan citizens, and making socially responsible investments within the local community.
- Operational Deadlines and Local Agreements (Clause 37): Licence holders are required to commence processing operations within six months of receiving the licence. They must also sign community development agreements and grant the government the right of first refusal to purchase processed gold at market price.
Penalties
- Unlicensed Operations: Engaging in gold exploration and exploitation operations without a permit is strictly prohibited. Violators face a fine of up to ten million shillings, an imprisonment term of up to ten years, or both under Clause 47.
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