Nairobi to process gold and gemstones at value addition centre
Kenya hopes to make Nairobi a gold and gemstones processing centre by offering tax incentives to importers of minerals from across East Africa. PHOTO | FILE
What you need to know:
To add value to make sure its minerals fetch better prices, Kenya’s Ministry of Mining has built a $5 million gemstone processing centre at Voi town in Taita Taveta County in the Coast region.
Kenya hopes to make Nairobi a gold and gemstones processing centre by offering tax incentives to importers of minerals from across East Africa.
The Ministry of Mining, Kenya Revenue Authority and the Central Bank of Kenya are working on a “relaxed” tariff structure for the minerals sector to stem the illegal trade in minerals, most of which are smuggled from countries prone to conflict.
“Africa is losing over $60 billion annually due to the illicit mineral trade. It is prudent for mineral rich countries to urgently address the issue that is robbing them millions of shillings in revenue,” said Kenya’s mining Cabinet Secretary Dan Kazungu.
Most minerals and precious stones from the region are exported in raw form to processing centres in Asia, notably Hong Kong.
To add value to make sure its minerals fetch better prices, Kenya’s Ministry of Mining has built a $5 million gemstone processing centre at Voi town in Taita Taveta County in the Coast region.
The Gem Cutting Centre is equipped with machines to cut, polish, value and packaging gemstones for sale in the international market. Small-scale miners in Taita Taveta have in the past complained of a lack of market for their raw gemstones.
Mr Kazungu said the centre Voi will be complemented by privately owned Avalite Mining Company that is currently building a $50 million gold refining plant on Mombasa Road in Nairobi.
Avalite is expected to commence refining gold and other precious minerals for domestic and export market before the second half of 2017.
