Needs Assessment and Action Plan for a Minerals Audit Division, Kenya

Countries

Kenya

Focus Area

Improving
Public sector capacity and governance

Status

Completed

sustainable development goals

Budget

$150,000 CAD

Funders

Global Affairs Canada

Who Benefits

Direct:

Kenya Ministry of Mining

Indirect:

Stakeholders, including civil society and mining companies

Ultimate:

The people of Kenya

Delivery Partners

Kenya Ministry of Mining

The Challenge

Kenya’s Ministry of Mining is building capacity, regulations and frameworks to manage its emerging mineral sector more effectively and sustainably. At this early stage, the Ministry has the opportunity to plan governance and management of the country’s mineral endowment in ways that will contribute to broad-based economic development and poverty reduction. Establishing mineral audit capacity is an important component in the assessment of regulatory and contractual compliance by mining companies, especially in terms of public revenue payments and enabling reliable public information on sector activities.

CIRDI's Approach

CIRDI assembled a technical team to conduct a desktop study and field mission to compile a needs assessment on mineral auditing in Kenya. Meetings held with officials from the Ministry of Mining, relevant government departments and agencies, and other stakeholders provided an understanding of the following topics:

  • Fiscal, environmental and labor issues within the Kenyan mining context
  • Existing institutional structures and capacity
  • Best practices for mineral auditing in several jurisdictions

Following the needs assessment phase, the technical team worked with the Kenya Ministry of Mining to generate an action plan for developing robust mineral audit capacity that would provide oversight of key transactions and enhance the transparency of the sector overall through timely and reliable information.

Project Details

The project was aligned with the Kenyan government’s objective of generating revenues through the extractive sector to help provide inclusive social programs and services for its citizens. In particular, the project aimed to:

  • Increase domestic capacity to monitor mineral exploration and mining activities and associated revenue flows
  • Improve the quality of information about activities in the mineral sector
  • Ensure compliance with relevant regulations and contractual agreements
  • Reduce the risk of fraud
  • Increase transparency and accountability

Cross-cutting themes

Gender

  • Supported three intersections of gender and fiscal audit:
  1. Equitable taxation and rent collection across large and small-scale mining
  2. Government expenditures that advance women’s inclusion and opportunities
  3. Civil service human resource plans that consider gender in recruitment strategy

Environment

  • The needs assessment included evaluation of environmental management and monitoring capacity and provided recommendations for collaboration and streamlining between regulatory authorities.

Governance

  • Provided direct support in natural resource governance to the Government of Kenya via an action plan for the advancement of mineral sector financial controls, primarily mineral audit capacity.

 

Results and Impact

The final report, including needs assessment and action plan, was delivered to the Government of Kenya in April 2016. Following this project, CIRDI is developing a working paper on international lessons in mineral auditing. CIRDI continues to work with developing country governments on advisory services and capacity building initiatives related to the fiscal governance and sustainable management of natural resources. 

This project provided tools to improve the capacity of the Kenyan government to audit natural resource sectors, especially mineral exploration and mining. It produced a better understanding of the challenges and opportunities facing fiscal governance of the Kenyan mineral sector and recommended concrete steps for the improvement of mineral auditing.

Sustainable Development Goals – Project Contributions

Peace, Justice and Strong Institutions

Provided capacity-building recommendations for developing in-house mineral audit capacity. Summarized international best practices in mineral auditing that can used by other countries to increase institutional capacity.

project team

resources

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