CS Joho proposes how Kenya can settle ballooning Ksh10.5 trillion debt
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Mining CS Hassan Joho proposes exploiting minerals to settle Kenya's ballooning debt
Mining CS Hassan Joho proposes exploiting minerals to settle Kenya’s ballooning debt.
Newly appointed Mining Cabinet Secretary Hassan Ali Joho believes that Kenya has enough minerals, which if well exploited, could help the country settle a sizable chunk of its huge Ksh10.5 trillion debt.
Speaking in Taita Taveta County on Friday during a meeting with regional law enforcement officers, CS Joho warned it will be business unusual going forward, where state officers will be required to clamp down on illegal mining.
The CS warned absconding responsibility will be dealt with swiftly.
“Our officers from the different law enforcement agencies. How do you allow illegal mining to take place in areas you are manning. So county commissioner, we start here in Taita Taveta, anyone engaging in illegal mining in this area, I am giving a directive, you take responsibility,” the former Governor directed the official.
“I won’t be cowed. I was given this responsibility and I must fulfill my mandate. You must help us deliver. Mining has a lot of opportunities. This country is currently saddled with debt. I am thinking one way the country can get itself out of the current debt crisis is to exploit our minerals so that we can get the funds to service our debt,” he stated.
Kenya’s mineral wealth is estimated to be worth over Ksh 3 trillion, with major contributions from minerals like titanium, gold, and soda ash.
Titanium, extracted primarily from the Base Titanium project in Kwale, contributes approximately Ksh 14 billion annually to the economy through exports.
Gold mining, particularly in Western Kenya, is another significant contributor, with estimates suggesting it brings in around Ksh 15 billion annually.
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The soda ash extracted from Lake Magadi is valued at about Ksh 9 billion per year, making Kenya one of the leading global producers. Additionally, the country’s untapped rare earth elements, discovered in regions like Kajiado, are estimated to be worth billions.
Overall, the mining sector contributes about 1% to Kenya’s GDP, but with ongoing exploration and investment, this figure is expected to rise.
Kenya’s public debt stood at Ksh10.54 trillion as of August 2024.
Various stakeholders including President William Ruto’s himself have warned that Kenya needs to find alternative ways to finance its budget arguing that continued borrowing is unsustainable over the long term.
“We must stabilise our public finances. This year, we will spend 60 percent of our revenues to service our debt. We are faced with Sh600 billion in pending bills for goods and services supplied to the government.
Clearly, we are living beyond our means. This situation must be corrected,” the President said after his inauguration in September 2023.
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