Who Needs a Mineral Dealer Licence in Kenya?

A Mineral Dealer Licence is required for individuals or companies involved in the commercial handling, movement, or trade of minerals in Kenya, where such activities are not fully covered by an existing mineral right.

The licence is typically issued to applicants intending to carry out one or more of the following activities:

• Export of minerals, including export by holders of a mining licence, mining permit, or artisanal mining permit, where export approval is required under the Mining Act and applicable regulations.
• Removal of minerals for sampling, assay, or laboratory analysis, whether for verification, valuation, or compliance purposes.
• Buying and selling of minerals within Kenya, or export of minerals by persons who are not holders of a mineral right.
• Importation of minerals, or removal of minerals for testing or analysis where the activity is not directly related to exploration or mining operations.

Any person or entity engaging in mineral trade, testing, or movement outside the scope of an existing mining licence or permit must obtain the appropriate mineral dealer licence or permit before commencing operations.

Why You Need to Use the Online Mining Cadastre Portal

The Online Mining Cadastre Portal is the official electronic management system for mineral rights and dealer permits in Kenya. It enables applicants to register, submit applications, upload required documents, make payments, and monitor application status. All mineral dealing records must also be maintained and submitted to the Cabinet Secretary through this portal.

Requirements for a Mineral Dealer’s Licence in Kenya

Applicants must meet specific requirements and prepare several documents before submission. These include:

• Coordinates of the location of the physical premises for mineral trading.
• Names or categories of minerals for which the licence is required.
• A valid KRA Tax Compliance Certificate.
• Company registration documents: Certificate of Incorporation, Memorandum and Articles of Association, and a current CR12.
• Knowledge and experience statement in mineral dealings.
• A statement of the applicant’s financial resources for the project.
• Letters of appointment for agents with their identification documents and contact details.
• Proof of identity (National ID or Passport) for individuals or company directors.
• Landowner’s consent (if premises are on leased land).
• Bank guarantee (original).
• Payment of the prescribed application and licence fees.
• A valid immigration work permit for foreign directors / investors

Step-by-Step Guide to Applying for a Mineral Dealer Licence in Kenya

All applications for a Mineral Dealer Licence in Kenya are submitted online through the Kenya Mining Cadastre Portal, the official digital licensing system managed by the Ministry of Mining, Blue Economy, and Maritime Affairs.

Step 1: Register on the Kenya Mining Cadastre Portal

• Visit the official Kenya Mining Cadastre Portal and create a user account.
• Upload a clear copy of your National ID or Passport.
• If applying on behalf of a company, upload a Letter of Authority signed by a company director.
• The Ministry of Mining will verify your details and send an email confirmation to activate your account.

Step 2: Complete the Online Licence Application

• Log in to the portal and select “Apply for a Mineral Dealer’s Licence.”
• For a new mineral dealer licence, complete: Form A-27 (Application) and Form L-10 (Licence).
• If applying for a Mineral Dealer Permit (local trade only), complete: Form A-28 and Form L-11.
• The portal will automatically display the required checklist and document upload sections.

Step 3: Upload Supporting Documents

Applicants must prepare and upload the following documents in digital format:

• Full name, nationality, contact details, and physical address of the applicant
• Certificate of Incorporation or Business Registration Certificate
• Memorandum and Articles of Association (for companies)
• CR12 or official register of directors and shareholders (companies)
• KRA Tax Compliance Certificate
• Name(s) of the mineral(s) to be traded (as classified under the First Schedule)
• Coordinates and description of the trading premises or office location
• Bank statement or a formal letter of intent from a bank confirming financial capability
• Description of the applicant’s knowledge or experience in mineral dealings
• List of agents (if any) and their identification documents
• For foreign applicants: a valid Work Permit or Investor Permit

Step 4: Pay the Application Fee and Submit

• Pay the non-refundable application fee through the Mining Cadastre Portal.
• Submission confirms that all information provided is accurate and truthful.
• Once submitted, the application is registered and published in the Ministry’s licensing register.

Step 5: Application Review and Government Approval

• The Director of Mines / Licensing Division reviews the application for completeness and compliance.
• A recommendation is forwarded to the Cabinet Secretary for Mining for final approval or rejection.
• If approved, an official approval or offer letter is issued through the portal.

Step 6: Pay Licence Fees and Obtain the Licence

Upon approval, applicants must pay the prescribed fees, which may include:

• Licence fee
• Licence preparation and registration fee
• Stamp duty

The current standard licence fee for general minerals is KES 20,000 per year. Higher fees apply for precious metals and diamonds.

Once payment is confirmed and a Letter of Acceptance is submitted, the Mineral Dealer’s Licence is issued digitally (PDF) through the portal. A physical copy may also be provided.

How Long Does It Take to Get a Mineral Dealer Licence in Kenya?

The Cabinet Secretary is required to communicate a decision within 30 days of receiving a complete application.

In practice, the total processing time may range between 2 to 6 months, depending on document completeness, regulatory reviews, and payment timelines.

Validity and Renewal of a Mineral Dealer’s Licence

A mineral dealer’s licence is valid until the 31st of December of the year it is issued. Renewal applications must be submitted through the Mining Cadastre Portal by 30th November each year.

To renew your licence:

• Log in to the portal and select the renewal application link.
• Upload the required documents and pay the renewal fee.
• Submit a copy of your current licence and any updated information about your operations.

Legal Framework: The Kenya Mining Act, 2016

The licensing and regulation of mineral trading in Kenya are governed by the Mining Act, 2016 and subsidiary regulations issued by the Ministry of Mining. These laws aim to ensure transparency, accountability, and environmental responsibility in mineral dealings.

The Act empowers the Cabinet Secretary to issue, renew, or revoke mineral dealer licences, and mandates that all dealings be recorded and reported electronically through the Mining Cadastre Portal.

Post-Licence Compliance Obligations for Mineral Dealers in Kenya

Once a Mineral Dealer Licence has been issued, the licence holder is required to comply with ongoing statutory and operational obligations under the Mining Act and the Dealings in Minerals Regulations. Non-compliance may result in suspension or revocation of the licence.

Commencement of Mineral Dealing

Licence holders must commence mineral dealing activities within 30 days of the licence issuance, unless a different commencement period is specified in the licence conditions.

Maintenance of Transaction Records

Mineral dealers are required to maintain complete and accurate transaction registers at their registered business premises. Each transaction record must include:

• Name and type of mineral
• Grade and quantity (weight)
• Transaction value or price
• Date of transaction
• Full details of the vendor and purchaser

Copies of transaction records must be submitted to the Ministry of Mining on a quarterly and annual basis using the prescribed reporting forms.

Statutory Reporting Requirements

Licence holders must submit periodic returns as follows:

• Quarterly and annual dealer returns using Forms AR-31 and AR-32
• Export returns using Forms AR-29 and AR-30, where applicable

Failure to submit statutory reports within the required timelines may lead to enforcement action, including suspension or revocation of the Mineral Dealer Licence.

Appointment and Use of Agents

Where agents are engaged in mineral dealing activities, the licence holder must:

• Formally notify the Ministry of Mining of the appointed agents
• Ensure agents are issued with official identification cards
• Acknowledge that the licence holder remains fully liable for the actions and compliance of all agents

Proper oversight of agents is essential to maintain regulatory compliance and protect the validity of the licence.

Frequently Asked Questions (FAQ)

1. Can a foreigner apply for a mineral dealer’s licence?

   Yes. Foreign companies must provide a valid work permit for directors and valid passports for identification.

2. What happens if I trade minerals without a licence?

   Trading minerals without a valid dealer’s licence is an offence under the Mining Act, punishable by fines, imprisonment, or both.

3. How long is the Mineral Dealer's Licence valid?

   The licence is valid for the calendar year in which it is issued and expires on the 31st of December of that year.

4. How do I renew my licence?

   Renewal must be done through the Mining Cadastre Portal. You must apply for renewal no later than 30th November of the current licence year. A renewal application link will be available at the bottom of your licence details page on the portal.

5. What if I don't have coordinates for my premises?

   The portal is flexible. During the "enter coordinates" step, you can select the interactive block selection method. This allows you to demarcate your area of interest directly on a map of Kenya, and the system will generate the coordinates for you.

6. Why might my application fail to validate?

   Common reasons include:

   • Not selecting a license type
   • Invalid coordinates (the error box will specify the issue)
   • Not selecting the commodity/commodities you wish to trade
   • Failing to upload all required supporting documents

7. What legal framework governs this process?

   All mineral rights applications are governed by the Kenya Mining Act of 2016. It is the principal legislation for the mining sector in Kenya.

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