NAIROBI, Kenya — Kenya and the United States are in advanced discussions over a potential partnership that could see critical minerals processed locally in Kenya, with some of the refined products supplied to the US market.
The proposed arrangement would deepen cooperation between the two countries in the mining sector while supporting Kenya’s ambition to move away from exporting minerals in raw form.
Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho has indicated that discussions involving the two governments are at an advanced stage. Several US government departments are involved in the negotiations, including those responsible for commerce, defence and foreign affairs.
The proposed partnership is expected to focus on establishing processing and refining capacity in Kenya, creating a pathway for minerals extracted locally to undergo value addition before being sold in international markets.
Mrima Hill at the centre of the talks
The discussions are closely linked to the proposed development of Mrima Hill in Kwale County, an area identified as having deposits of niobium and rare earth elements.
Kenya’s Ministry of Mining has identified niobium and rare earth elements as strategic minerals. Government geological information indicates that the Mrima Hill prospect contains significant mineralisation, including niobium and rare earth elements.
The government has been pursuing a competitive process to identify a company capable of undertaking detailed exploration and eventually developing the deposit.
The project is located approximately 65 kilometres southwest of Mombasa and covers about 31.9 square kilometres.
The government estimates include both indicated and inferred mineral resources, although detailed commercial development will require further exploration and technical assessment.
Kenya wants processing to happen locally
A major element of the proposed Kenya-US partnership is local value addition.
Rather than exporting mineral ores for processing elsewhere, Kenya wants companies investing in the sector to establish processing facilities within the country.
Such an approach could create opportunities beyond mining itself, including engineering, manufacturing, transport, logistics, technology, construction and specialised technical services.
The government is also considering incentives that could support investment in mineral-processing infrastructure. These include special economic zones, access to ports, supporting infrastructure and tax incentives.
For Kenya, the objective is to ensure that mineral resources generate broader economic benefits through industrialisation and employment.
US seeks secure critical-mineral supplies
The proposed agreement also comes as the United States seeks to strengthen its access to critical minerals needed for strategic industries.
Critical minerals and rare earth elements are used in technologies ranging from advanced electronics and energy systems to aerospace, defence equipment and high-performance manufacturing.
The US has been seeking to diversify its supply chains for these materials and establish partnerships with mineral-producing countries.
Kenya’s geographical position, relatively developed infrastructure and access to the Indian Ocean could make the country an important location for mineral processing and export.
For Washington, cooperation with Kenya could provide an additional source of processed critical minerals while supporting the development of new supply chains.
Potential for jobs and new industries
If the agreement progresses, Kenya could see investment in processing plants and related industries around its mineral resources.
The establishment of refining and processing facilities would require skilled workers, engineers, technicians, researchers and other professionals.
It could also stimulate demand for local suppliers and service providers.
The government has previously identified mining as an area with significant potential to expand its contribution to the economy. Mining currently represents a relatively small share of Kenya’s economic output, and authorities want to increase the sector’s contribution substantially over the coming decade.
Local processing is expected to be an important part of that strategy.
Deal is still under negotiation
Despite the advanced discussions, the proposed Kenya-US arrangement has not yet been finalised.
Important details, including the final investment structure, participating companies, processing capacity, mineral volumes and specific export arrangements, will depend on the outcome of ongoing negotiations and the development process for the mineral deposits.
The government will also need to address environmental, community and regulatory considerations as projects move from exploration towards commercial production.
For Kenya, the emerging partnership represents a potential shift in how the country approaches its mineral resources — from simply extracting and exporting raw materials towards building an industrial value chain around them.
If successfully concluded, the agreement could place Kenya within the growing international critical-minerals supply chain while creating a new platform for investment, technology transfer and mineral-based manufacturing.
