On July 3rd, 2024, the long-awaited Mining (Royalty Collection and Management) Regulations, 2024 were published to give effect to Section 183 of the Mining Act, 2016, which requires holders of mineral rights in Kenya to pay royalties. The Regulations outline a comprehensive framework for the determination and payment of royalties by licensees. They revoke several regulations published in 2013 and 2015 that prescribed royalties on minerals, fluorspar, Magadi Soda products, cement minerals, and diatomite.

The payment of royalties under the Regulations is guided by five principles, including the provision of monetary compensation to Kenyans for the extraction of mineral resources based on the full market value of the mineral in its most processed and marketable form, including any enhancements that increase value. The basic royalty rate to be shared shall be determined by the gross value of the minerals extracted, subject to permitted deductions and offsets. Finally, it is expected that appropriate safeguards, including periodic reconciliation for exports of minerals and the transfer of mineral rights, shall be in place to ensure the recovery of all due royalties.