A prospecting licence grants the holder an exclusive right to search for minerals within a defined licence area, following an approved work programme. It is the step up from reconnaissance and typically precedes an application for a mining licence once a viable deposit is identified.
Fee Summary Table
| Item | Fee / Charge |
|---|---|
| Application fee | Ksh. 500,000 |
| Annual ground rent | Ksh. 3,000 per km², subject to a minimum of Ksh. 500,000 per licence year |
| Transfer fee | Ksh. 50,000 per km², subject to a minimum of Ksh. 5,000,000 |
| Document perusal (per hour) | Ksh. 2,000 |
Source: The Mining (Licence and Permit) (Amendment) Regulations, 2024 (Legal Notice 43 of 2024).
What You Need
- Form PL1 application with a detailed prospecting work programme and budget
- Evidence of technical and financial capacity to carry out the programme
- Environmental and community land compliance documentation
- Company registration, CR12, and KRA PIN
Renewals and Amendments
Renewal applications (Form PL3) are decided within 90 days, and any amendment to the approved work programme requires written justification based on prospecting results or other new information. Given the substantial application fee and significant minimum annual rent, prospective licensees should budget for at least Ksh. 1,000,000 in year one between the application fee and minimum rent.
A prospecting licence is a serious financial commitment from the outset — half a million shillings just to apply, plus a half-million-shilling minimum annual rent regardless of the area’s actual size if it’s small. Larger licence areas scale the rent up further at Ksh. 3,000 per km², so map out your intended licence area carefully before applying.
