Strategy to Curb Illegal Mining and Launch Shipbreaking

Cabinet Secretary for Mining and the Blue Economy, Hassan Joho, during his vetting process in the national assembly had promised to curb illegal mining.

The CS is determined to implement radical policies to curb illegal mining and stop the leak of revenue from the sector and crack down on the illegal export of unprocessed and raw minerals, which is costing the country billions of shillings.

Speaking to the press on Wednesday, 21st August after meeting with the Nyanza regional mining officer, Joho said that smugglers often pay royalties to the countries where they deposit the unprocessed minerals, bypassing Kenyan regulations and causing significant financial losses.

The Cabinet Secretary further emphasized that Kenya has strict laws prohibiting the export of minerals without proper documentation, vowing to enforce these regulations more effectively.

Acknowledging the frustration of those who have waited over seven years to receive their dues, Joho assured stakeholders that the payment of royalties in the mining sector will be expedited according to the law.

Further, during his first official visit to Mombasa, the CS unveiled an ambitious plan to introduce the shipbreaking industry in Kenya, a lucrative industry common in Asian countries like Bangladesh and India. Scrapping companies pay roughly $400 per tonne, translating to payments of $3 million to $10 million for a single vessel depending on its size.

“I have directed the formation of a working committee on shipbreaking. This is a subject that resonates with me deeply and I understand its potential to transform our industry. Unlike vehicles, ships can’t be easily repaired when they age, they must be dismantled. Vessel owners will bring their ships to us at their own expense, pay for dismantling, and leave the wreckage here which will significantly benefit our steel industry. The steel from one vessel can lower our costs tremendously,” Joho said.

However, this plan is already receiving backlash from health professionals. One user on X said, “Shipbreaking poses severe health risks, including exposure to toxic materials like asbestos and heavy metals, leading to respiratory issues and cancer, as seen in countries like Bangladesh.”

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