How Machakos loses Sh2.4bn per year in unregulated sand mining

Kenya’s construction industry is booming, fuelled by surging demand for housing and infrastructure.

However, behind this rapid growth lies an unchecked sand harvesting trade rife with tax evasion and environmental destruction.

The consequences of these illegal activities are severe, with a county such as Machakos losing billions of shillings annually to cartels due to weak governance structures.

Kamala Ward Representative Boniface Maeke, who is also a member of the Machakos County Assembly’s Environment Committee, said the county loses over Sh2.4 billion annually due to poor revenue collection tied to sand and gravel harvesting.

This loss stems from weak enforcement of transport levies and collusion between transport companies, criminal networks, and corrupt local officials.

Mr Maeke revealed that at least three major regional companies transport sand without paying required transport levies.

“Each company moves at least 400 truckloads of sand daily. If properly regulated, with each truck paying Sh2,000 per trip, the county could earn Sh800,000 daily or Sh24 million monthly,” he explained.

He said clerks at collection points often underreport earnings, submitting as little as Sh31,000 daily. The sand harvesting industry remains predominantly informal, leaving workers vulnerable and counties unable to maximise potential revenue.

The trade offers minimal earnings for labourers like Deborah Musyoki, a mother of three, despite its gruelling demands.

“I earn Sh100 for carrying five kilogrammes of sand per trip. If I work until 5pm or 6pm, I might make Sh350,” she said.

Similarly, small-scale operators like Mike Wambua struggle to turn a profit. Employing seven women at Sh350 each and diggers at Sh400 daily, Wambua barely breaks even.

“A lorry fetches sand for Sh5,000. Of that, Sh3,600 goes to my workers, Sh500 to the landowner, leaving me with just Sh900,” he said.

To avoid scrutiny from county officials and additional levies, most sand transport occurs after 6pm, depriving local governments of revenue.

The absence of proper regulation and enforcement has allowed criminal cartels to dominate the trade. These networks exploit the weak governance structures in sand-producing regions like Machakos, operating covertly and often violently.

According to a 2022 report by ENACT, the sand trade exemplifies a broader issue of illicit financial flows (IFFs) in Kenya.

ENACT research is a project ran by the Institute for Security Studies (ISS), in partnership with INTERPOL and the Global Initiative against Transnational Organized Crime (GI-TOC).

IFFs refer to funds generated through illegal or unethical practices, such as tax evasion and corruption, which drain the economy of vital resources.

The ENACT report further highlights the magnitude of the problem, noting that sand harvesting is mainly by criminal networks.

“This trade costs Kenya millions of shillings annually in lost revenue. It is run by cartels that exploit weak regulations and limited law enforcement,” the report states.

The report also linked sand harvesting to environmental degradation and social conflicts in sand-producing communities.

Over extraction leaves massive pits and damages critical waterways, threatening rivers and roads while fuelling disputes over dwindling resources, the report said.

Local leaders and stakeholders are calling for urgent government intervention to formalise the sand trade and curb IFFs.

“We need organised groups that ensure decent work at decent wages without exploiting ordinary citizens,” said John Munyao, a Minority Representative from Mutituni Ward.

Mr Munyao also emphasised the need for controlled sand deposition sites to mitigate environmental damage and ensure sustainability.

The Machakos Environment Committee is proposing policy reforms to address these issues.

One key measure is a Finance Bill that would increase levies on sand transport to Sh3,000 per trip while creating designated sand harvesting sites. The committee also plans to reopen roads damaged by roadside harvesting, which has deterred customers from accessing legitimate sales points.

“We aim to maximise revenue collection by January 2025. This will ensure resources generated from sand harvesting contribute to community development and infrastructure,” Mr Maeke said.

However, he acknowledged that enforcement mechanisms must be strengthened to close existing loopholes. The unregulated sand trade has far-reaching consequences beyond lost revenue. Workers face significant safety risks, with reports of fatalities in unmonitored sand pits.

“In my ward, I’ve lost two young men to sand harvesting,” Mr Munyao said.

“The government must intervene to make this trade safe and beneficial for our communities,” added Mr Munyao.
Machakos Chief Officer for Finance Onesmus Kuyu stated that for many years, the county has been losing revenue due to the failure to involve residents in understanding the importance of paying taxes.

He mentioned that one of the ways revenue is lost is through sand harvesting.

To address this, they have now issued a directive requiring sand harvesters to form groups to facilitate efficient revenue collection.

“This year, the county has achieved higher revenue compared to previous years. These efforts are a result of public engagement meetings. Even in sand harvesting, we have started involving the stakeholders. I want to warn those individuals making the county to lose the revenue, know that your time has come. You either comply or leave. Public funds will not be misused,” said Mr Kuyu.

The 2022 report by the United Nations Environment Programme (Unep) titled, “Sand and Sustainability: 10 Strategic Recommendations to Avert a Crisis”, warns that sand extraction is increasing by approximately six per cent each year, a rate that is not sustainable.

The unchecked removal of sand, a finite resource, could lead to catastrophic consequences. Sand forms over millions of years in waterways but is extracted within hours to meet construction demands.

According to the Unep report, this environmental degradation disrupts ecosystems, endangers biodiversity, and exacerbates climate change.

The project received support from the Thomson Reuters Foundation as part of its global work aiming to strengthen free, fair and informed societies. The content of this article belongs solely to the author.