Kwale residents optimistic about getting mining royalties after Mvurya swearing-in
Maumba-Nguluku residents’ chairperson Gideon Masyuki. They said Mr Mvurya’s appointment was timely and they expect him to push the government to release the royalties that they believe are lying in the National Treasury.
Residents of Kwale affected by mining activities are now pegging their hopes on Mining Cabinet Secretary Salim Mvurya to resolve a standoff over billions of shillings in titanium mining royalties.
They said Mr Mvurya’s appointment was timely and they expect him to push the government to release the royalties that they believe are lying in the National Treasury.
Their plea comes as Base Titanium secured a mining permit to continue its operations until 2024.
The company has been paying the government taxes and royalties in exchange for a larger mining area.
It is estimated that Base Titanium has remitted about Sh6 billion to the Treasury, but lack of a proper legal procedure has delayed the disbursement of the funds.
“We have been promised for a long time that we will receive our royalties but they have never been fulfilled,” said Bibi Masha, a resident of Ukunda.
“We know now that it will eventually come down to us as the Cabinet Secretary will bridge the gap between us and the national government.”
Kwale residents who moved to make room for titanium mining had said that most of them lived in poverty after the dismal compensation they received years ago, while the royalties that they had expected did not materialise.
Residents of Maumba and Nguluku urged Mr Mvurya to prioritise the royalty issue.
“He should not forget us. Other leaders may not have taken our case seriously but we believe that being one of us, he will see the urgency of the matters and ensure that we get compensated,” said Maumba-Nguluku residents’ chairperson Gideon Masyuki.
He added that though the valuable minerals are found in Kwale, many locals still live in extreme poverty.
“With new leadership in the ministries, we believe that all our challenges will finally be addressed and have residents benefit directly from the resources in their areas,” he said.
Mr Mvurya, a former Kwale governor, was appointed minister by President William Ruto.
Residents previously pleaded to the government to deposit the royalties directly into the bank account of the Maumba Nguluku Community Based Organization so that they could control the funds.
In May, the Treasury published a framework under which the ministry would set up a mineral royalties collection account. Some 70 per cent of the collections would be transferred to the Consolidated Fund.
The Treasury, which will receive royalties by the end of every month, will then open a county mineral royalties account, into which 30 per cent of the collections will be deposited. Some 10 per cent will be sent to the affected communities through a special purpose account.
But residents and county governments are yet to receive the money.
Residents, however, depend on community projects set up by Base Titanium as direct benefits from one of Kenya's largest mineral exports.
For instance, two weeks ago, residents in drought-hit Kinango received relief food from the company, which promised to partner with the county government to minimise the effects of drought.
The company also launched the Community Development Agreement Committee (CDAC) in Lungalunga, Msambweni, and Likoni constituencies. Members will decide which community projects they want to be funded by the company.
The CDAC was formed last year as a commitment to fulfil the 2016 Mining Act that provides guidelines for the Australian firm to cede one per cent of its total annual revenue for community development.
This includes classrooms, water projects, dormitories and roads.
