The Kenya-United States mineral deal is nearing the final stages of negotiations, with the proposed agreement expected to unlock investment in Kenya’s strategic mineral resources while promoting local processing and value addition.
President William Ruto said the two countries had agreed on key aspects of the proposed deal following talks with US President Donald Trump on the sidelines of the G7 Summit in Évian, France.
According to the President, the agreement will focus on rare earth minerals and other strategic resources that are increasingly in demand globally.
“We’ve agreed with them on what is mutually beneficial between Kenya and the United States, and President Trump and the American administration are happy with it,” Ruto said in remarks reported by Reuters.
A key element of the proposed agreement is Kenya’s push to ensure minerals are processed locally instead of being exported in their raw form.
“The minerals will be processed in Kenya,” the President said.
The planned arrangement is expected to have implications for the development of mineral resources at Mrima Hills in Kwale County, an area with deposits estimated to be worth about KSh8.1 trillion.
Speaking at the G7 Summit, Ruto said Africa must move away from exporting raw minerals and instead focus on creating value through local processing.
“The natural resources can no longer be exported and processed elsewhere. They have to be processed in-country and in-continent. We have to create value out of them,” he said.
The President noted that processing minerals locally would help create jobs, support industrial growth and allow countries and communities to derive greater economic benefits from their natural resources.
His remarks come amid growing efforts across Africa to promote value addition and increase local participation in the mining sector.
Kenya is seeking to strengthen its position in the minerals industry, with deposits that include rare earth elements, niobium, lithium, graphite, copper and nickel.
These minerals are widely used in the production of electric vehicles, batteries, renewable energy technologies and other advanced industrial products, making them increasingly valuable in the global market.
Ruto said his discussions with Trump centred on partnerships driven by investment and industrial development rather than traditional aid.
“We are going to reject any relationships that are based on the extraction of our natural resources,” he said.
The proposed agreement comes at a time when major global economies, including the United States, China and European countries, are seeking stronger partnerships with African nations to secure access to critical minerals.
Despite the growing global competition, Ruto said Kenya would continue engaging with all partners based on the country’s national interests.
“There are opportunities for everybody,” he said, adding that Kenya would pursue partnerships that support industrialisation, economic growth and job creation.
If concluded, the agreement could mark a significant step in Kenya’s efforts to expand value addition in the mining sector and maximise returns from its mineral resources.
