Ruto says Kenya will stop raw mineral exports, but can the country process them locally?

President William Ruto has announced that Kenya will move away from exporting unprocessed minerals, saying companies must instead establish factories and create jobs within the country.

Speaking during a thanksgiving service in South Horr, Samburu County, Ruto said Kenya had lost income and employment opportunities by allowing minerals to be shipped abroad before they were processed.

He listed gold, limestone, iron ore, graphite, titanium and soda ash among the resources that should undergo local processing.

“The raw material that God has given us must create jobs for the people of Kenya,” Ruto said.

The announcement presents an ambitious industrial vision. But it also raises practical questions about whether Kenya has the factories, investment, electricity, technology and skilled workers required to process all its minerals locally.

There is also uncertainty over when the policy will begin and whether existing mineral exporters will be given time to adjust.

Is this already a ban?

Not yet, based on the information made public.

The President announced the government’s position and said his administration was exploring ways to ensure minerals were processed in Kenya.

However, no new law, regulation or Gazette notice imposing an immediate blanket prohibition on raw mineral exports was cited in the announcement.

Kenya’s existing mining laws allow minerals to be exported once the required permits and approvals have been obtained. The Mining (Dealings in Minerals) Regulations require an export permit for every mineral shipment.

This means the President’s statement is best understood, for now, as a policy direction rather than an export ban that took effect immediately.

To enforce it across the sector, the government may need to amend regulations, impose new conditions on mining and export licences, or adopt the proposed Minerals, Mining and Beneficiation Policy.

It would also need to explain whether the restriction applies to every mineral, only selected strategic minerals, or only new mining agreements.

Why does Kenya want local processing?

Minerals are generally worth more after they have been cleaned, separated, refined or converted into finished products.

Raw limestone, for example, can be turned into cement and other construction materials. Soda ash is used in manufacturing glass, soaps and detergents. Graphite has applications in batteries, lubricants and industrial products.

Gemstones gain value when they are cut, polished, graded and set into jewellery rather than exported in their rough form.

Gold refining can improve traceability, increase export earnings and create opportunities in jewellery and financial services.

Ruto’s argument is that factories carrying out these activities should be built close to the mineral deposits so that Kenya earns more than royalties and export fees.

Local processing could create technical jobs, stimulate transport and energy investment and support other manufacturers that use minerals as raw materials.

This approach is often described as mineral beneficiation or value addition.

How important is mining to Kenya?

Mining remains a relatively small part of Kenya’s economy, contributing about 1% of gross domestic product.

The country produces soda ash, gold, salt, limestone, gemstones, gypsum, diatomite and several minerals used in cement production.

It has also identified deposits of graphite, copper, nickel, manganese, iron ore, niobium and rare earth elements.

The Kenya National Bureau of Statistics said mining and quarrying recovered from a 7.8% contraction in 2024 to grow by 14.9% in 2025. The improvement was partly linked to increased production of minerals used in cement manufacturing.

The government wants mining to contribute as much as 10% of the economy by 2030.

That would require a dramatic increase in exploration, commercial production and processing within a short period.

Kenya’s draft Minerals, Mining and Beneficiation Policy acknowledges that most minerals are still exported with limited processing, reducing the income retained in the country.

Which minerals could be processed locally?

Kenya already carries out some mineral processing.

Limestone is converted into cement, while salt and soda ash undergo industrial processing before sale. The Voi Gemstone Value Addition Centre provides cutting, polishing and faceting services to gemstone miners.

The government is also pursuing a gold refinery in Kakamega and has previously invited investors to establish a granite processing plant in Vihiga.

In the 2026 and 2027 financial year, the National Mining Corporation plans to pursue copper and associated mineral projects through partnerships with private investors.

These initiatives show that local processing is possible, but they are at different stages of development. Some are operating, while others remain proposals, tenders or projects awaiting investment.

Processing requirements also differ widely.

Cutting gemstones does not require the same infrastructure as refining rare earth elements or manufacturing battery grade graphite.

A single policy cannot therefore be applied to all minerals without considering production volumes, available technology and whether a processing plant would be commercially viable.

The investment challenge

Mineral processing plants can cost billions of shillings.

Investors need reliable geological information before committing money. They must know how much of a mineral exists, its quality, how long it can be mined and whether international demand will remain strong.

A factory cannot operate profitably if the deposit is too small or the supply of ore is inconsistent.

Many of Kenya’s mineral deposits have not been explored sufficiently to establish commercially recoverable reserves.

The government is developing geological data and inviting investors into projects involving copper, rare earth elements and other critical minerals. But exploration can take years before a mine or processing plant becomes operational.

Ruto said in June that Kenya was close to concluding a critical minerals agreement with the United States. He said the proposed arrangement would require the minerals covered by the deal to be processed in Kenya.

The details, including the level of processing, financing and ownership arrangements, have not yet been made public.

Electricity and infrastructure

Processing minerals requires reliable and affordable electricity.

Crushing, grinding, heating, separation, smelting and refining can consume significant amounts of power.

Investors will compare Kenya’s electricity prices with those in competing mining countries before deciding where to establish factories.

Processing plants also need water, roads, railway connections, storage facilities and access to ports.

Some mineral deposits are found in remote areas where this infrastructure is limited. Building it could make a project more expensive, although it could also bring wider benefits to surrounding communities.

The government will have to decide whether it will finance supporting infrastructure, offer tax incentives or leave investors to meet the full cost.

Could an immediate restriction hurt exports?

A ban introduced before processing plants are ready could disrupt existing mines.

Companies that cannot export their products and have nowhere to process them locally may reduce production, suspend operations or cut jobs.

The government could also lose royalties, taxes and foreign exchange earnings during the transition.

Kenya previously earned substantial revenue from titanium minerals mined in Kwale, while soda ash remains an important export.

Government data cited by the Associated Press showed that Kenya exported 254,779 tonnes of soda ash worth about $56.9 million in the year to July 2025.

A phased approach could allow exporters time to build plants or enter partnerships with processors.

The government has not yet announced the transition period, exemptions or penalties that would accompany the proposed policy.

The Tata Chemicals connection

Ruto’s announcement followed his demand that Tata Chemicals leave Kenya and be replaced by investors willing to build glass and chemical factories in Kajiado.

The President accused the company of exporting Kenya’s mineral wealth without providing sufficient local benefits.

Tata Chemicals says it has complied with Kenya’s regulatory requirements and wants the dispute addressed through the appropriate legal channels.

Its Magadi operations were suspended in July pending a government compliance review.

The wider policy suggests the dispute is no longer only about one company. It could become the model the government uses when negotiating future mining licences.

Questions the government must answer

The policy could create jobs and allow Kenya to retain more value from its natural resources. Its success, however, will depend on the detail.

The government must now explain:

When restrictions on raw mineral exports will begin
Which minerals will be affected
What level of processing will be required
Whether existing licence holders will receive a transition period
How processing plants will be financed
What incentives will be offered to investors
How environmental and water concerns will be addressed
How communities will share in the additional value
What will happen where local processing is not commercially viable

Stopping raw mineral exports is easier to announce than to implement.

If factories, energy and markets are secured first, the policy could support industrial growth. If exports are stopped before those foundations are ready, Kenya risks having minerals in the ground but no viable route to market.

Category: Business · Related Topic: William Ruto