by Chrispinus Omar
MOMBASA (Xinhua) -- Kenya on Friday
announced a crackdown on illegal mineral shipment aimed at tax
compliance and curbing capital flight at Mombasa port.
Cabinet Secretary for Mining Dan Kazungu urged exporters of
minerals and freight handling companies to comply with the
requirements of the Mining Act and existing customs regulations
that require all exports and imports to be based on valid export
permits issued by the ministry.
"Increased shipment of illegal minerals is costing the Kenyan
government and indeed neighboring countries revenues meant to be
generated through taxation and royalties," Kazungu said at the
port of Mombasa.
With the port of Mombasa being the gateway to East Africa and
a major exit point for exports to the rest of the world, Kenya
has been cited as a key channel for the smuggling of illegally
mined minerals from Kenya and neighboring countries.
Besides Kenya, some of the minerals are sourced from
countries such as Tanzania, the Democratic Republic of the Congo
(DRC) and the Central African Republic (CAR).
Kazungu said some of the minerals being illegally shipped
include gold, copper ore, gemstones such as rubies, tsavorites
The East African nation has over the past two years
undertaken major reforms in the sector including the review of
its mining fiscal regime to be in line with the new Mining Act
2016 and global best practice.
According to a recent United Nations Economic Commission for
Africa report, Africa loses 50 billion U.S. dollars annually to
illicit financial flows with the extractive sector accounting
for 56.2 percent of the loss.