Mining Licence Fees / Charges in Kenya

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.

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