The Gold Processing Bill, 2023

Background

The Gold Processing Bill, 2023 was published in Kenya Gazette Supplement No. 132 on 11th August 2023 and passed by the National Assembly without amendments on 13th August 2026. The Bill seeks to create a robust, dedicated institutional framework for collecting, purifying, smelting, refining, and transporting gold or gold products, moving gold out of the general scope of the Mining Act.

Key Amendments

• Creation of the Gold Processing Corporation: Established as a body corporate headquartered in Nairobi. It will be governed by a Board that includes a Chairperson appointed by the President, several Principal Secretaries, private sector representatives, and a nominee of the Council of Governors.
• Exclusion of Gold from the Mining Act (No. 12 of 2016): Section 49 of the Bill deletes Section 3 of the Mining Act and replaces it with a new provision declaring that the Mining Act does not apply to matters relating to the exploration, exploitation, and processing of gold. Section 50 deletes the word "Gold" from Part C of the First Schedule of the Mining Act.

New Obligations

• Mandatory Permits & Licences: No person may explore or exploit gold without an exploration permit from the Cabinet Secretary (Section 5). No person may process gold without a processing licence (Section 29).
• Rigorous Application Standards: Licence applicants must submit a feasibility study, a NEMA-approved environmental impact assessment, a local goods procurement plan, and a plan for training and employing Kenyan citizens.
• Operational Compliance: Licensees must commence operations within six months, keep accurate logs, maps, and financial statements at their registered offices, and provide the government with the right of first refusal to purchase processed gold at market price.
• Community Engagement: Under Section 37(j), licence holders must enter into a formal community development agreement with the local community in the area of processing operations.

Penalties

• Unlicensed Exploration/Exploitation: Conducting exploration or exploitation of gold without a permit carries a fine not exceeding KSh 10 million, imprisonment for up to 10 years, or both (Section 5(4)).
• Obstruction and Misrepresentation: Obstructing Corporation officers, failing to obey instructions, or submitting false information carries a fine of up to KSh 500,000, imprisonment for up to 5 years, or both (Section 47).
• Conflict of Interest: Any Board member who fails to disclose a conflict of interest in a contract or matter before the Board is liable to a fine of up to KSh 100,000, imprisonment for up to six months, or both (Schedule, Paragraph 2(3)).