Companies investing at least $100 million in Kenya’s mining sector must have 24 per cent local shareholding through the stock exchange within three years of operations.
The requirement is contained in the Mining (Local Equity Participation) Regulations of 2017 drafted by the Ministry of Mining, and applies to firms extracting gold and other minerals but excludes crude oil and natural gas that are under the jurisdiction of the Energy Ministry.
Mining Cabinet Secretary Dan Kazungu said the regulations will allow Kenyans to participate in developing mineral resources by acquiring equity of mining companies and enabling extraction firms raise capital locally.
“The minimum local shareholding for a holder of a mining licence shall be obtained through a public offer in accordance with provisions of legislation relating to capital markets and listing rules of stock exchange,” he said.