Kenya And US In Advanced Talks Over Critical Minerals And Refining Deal

Kenya and the United States are in advanced negotiations regarding a strategic critical minerals partnership designed to establish local processing plants and export refined minerals to the American market.

Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho disclosed that discussions involve key American institutions, including the U.S. Departments of Commerce, Defense, and State. The proposed deal focuses on in-country value addition, aligning with Nairobi’s policy shift to ban raw mineral exports and maximize local economic benefits.

The negotiations are closely linked to the bidding process for the mineral-rich Mrima Hill deposit in Kwale County. At least six multinational firms from the United States, Australia, and China are competing for development rights to process key industrial deposits, including niobium, cobalt, copper, and nickel.

“Several departments of the U.S. government are involved in the discussion,” CS Joho confirmed, adding that the government expects to conclude the Mrima Hill bidding process by late October 2026.

To attract these capital-intensive investments, Kenya plans to offer comprehensive fiscal and infrastructural incentives. CS Joho noted that the government will provide targeted concessions, including Special Economic Zone status, streamlined port access, robust transport infrastructure, and tax reliefs.

The initiative builds on recent bilateral engagements in New York between President William Ruto and U.S. Secretary of State Marco Rubio, alongside assurances from U.S. Assistant Secretary of State for African Affairs Frank Garcia backing localized processing. By expanding value-addition capacity, Kenya aims to elevate mining’s contribution to the national economy from its current 1% share of GDP to 10% over the next decade.