A mining licence authorises commercial-scale extraction of minerals within a defined area and is generally the endpoint of the exploration pathway that begins with reconnaissance and prospecting. It is granted under the Mining Act, 2016.
Fee Summary Table
| Item | Fee / Charge |
|---|---|
| Application fee | Ksh. 500,000 |
| Annual ground rent | Ksh. 2,500 per hectare, subject to a minimum of Ksh. 500,000 per licence year |
| Transfer fee | Ksh. 1,000,000 |
| Mineral Development Levy | 1% of gross sale value (0.5% for salt and cement) |
Source: The Mining (Licence and Permit) (Amendment) Regulations, 2024 (Legal Notice 43 of 2024); Mining Act, 2016.
What You Need
- A feasibility study and mining programme
- Environmental and social impact assessment approval from NEMA
- Site restoration and mine closure plan
- Environmental protection bond
- Company registration, tax compliance certificate, and proof of financial capacity
The Levy Is the Long-Term Cost Driver
While the application fee and ground rent are fixed obligations, the Mineral Development Levy — charged at 1% of gross sale value for most minerals — is the cost that scales with your actual production and revenue. For high-volume operations, this levy will dwarf the one-off application fee over the life of the mine, so factor it into your financial modelling rather than treating licensing as a one-time cost.
A mining licence carries the same headline application fee as a prospecting licence (Ksh. 500,000) but adds a steep Ksh. 1,000,000 transfer fee and an ongoing production-linked levy. Budget for licensing as an ongoing cost centre, not a single upfront payment.
