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Treasury publishes draft rules for sharing mining royalties



Treasury has developed a draft framework for sharing revenue from mineral royalties among National Government, County Governments and Communities.

In a public notice, Treasury CS Ukur Yatani said the purpose of the draft framework is to provide for budgeting of mineral royalties at the National Government, County Governments and Communities levels.

The draft also provides a clear flow of funds from mineral royalties from the state to communities and proposes institutional arrangements for sharing revenue from mineral royalties.

According to the draft, it has been proposed that the Mining Ministry open a Mineral Royalties Collection Account to receive all mineral royalties. 70% of all mineral royalties collected will then be transferred to the Consolidated Fund.

There is a proposal that a county mineral royalties account be opened into which 30% of all mineral royalties collected shall be deposited for ease of sharing with the respective beneficiaries under Section 183 of the Mining Act 2016.

The draft also requires the Mining Ministry to remit the royalties received by the end of every month to the Treasury.

Treasury has published the draft framework on its website

According to the public notice, both Ministries of Petroleum and Mining and the exchequer identified gaps in the Mining Act 2016 and the Public Finance Management Act 2012 on sharing Mineral Royalties between the two levels of government and the local communities.

Accordingly, the exchequer constituted an Inter-Agency Taskforce to develop a framework for sharing mineral royalties among the national, county governments and communities.

The task force comprises staff from the exchequer as well as the Ministry of Petroleum and Mining, the State Department for Trade, the Council of Governors (COG), Office of the Attorney General (OAG), and the Commission on Revenue Allocation (CRA).

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