BUSINESS

Kenya Courts US Investment to Process Rare Earth Minerals Locally

Share
Lee K
Trade Cabinet Secretary, Lee Kinyanjui. PHOTO/@GovLeeKinyanjui/X
Share

Kenya wants the next big export to the United States to come from its underground wealth, not just its factories.

As Nairobi pushes for a stronger trade relationship with Washington, mineral exploration and local processing have emerged as a major part of the talks, alongside efforts to secure the extension of the African Growth and Opportunity Act (AGOA).

Cabinet Secretary for Investments, Trade and Industry Lee Kinyanjui said Kenya is advancing discussions on a bilateral trade agreement with the US, while also working to benefit from an extended AGOA window.

“Kenya is advancing a bilateral agreement with the US even as we eye AGOA extension. We are partnering with the US on mineral exploration and processing to avoid exporting raw minerals and also take advantage of opportunities in the digital space to create jobs for the youth,” Kinyanjui stated on his X account on Wednesday, February 4, 2026.

Kenya’s goal, according to the government, is to stop exporting raw minerals and instead build industries that process them locally. Officials say value addition will create jobs, boost revenues, and help the country earn more from its natural resources.

The country holds deposits of critical minerals, including rare earth elements and niobium, which are widely used in electronics, renewable energy technology, and electric vehicles. These minerals have become highly sought after globally as countries race to secure supply chains.

Mrima Hill

The key area drawing attention is Mrima Hill in Kwale County, a coastal forest covering about 390 acres that sits on rare earth deposits. Mrima Hill is also linked to large deposits of niobium, a metal used to strengthen steel.

In 2013, Cortec Mining Kenya, a subsidiary of Pacific Wildcat Resources, estimated the value of minerals in the area at more than $60 billion, putting the site among the most talked-about mineral zones in the country.

Interest in the region has grown in recent years. A report published in October 2025 indicated that officials and investors from the United States, China and Australia had shown interest in the area, driven by rising demand for rare earths and China’s tightening grip on exports.

Kenya says the mineral talks are part of wider trade negotiations that also cover sectors like agriculture, manufacturing and digital technology.

The government is pushing for partnerships that bring in investment, transfer technology and set up processing facilities in Kenya instead of shipping minerals out in raw form.

American interest in Kenya’s mineral sector has also been rising, with firms exploring opportunities in minerals such as rare earths, niobium, lithium and manganese, all of which are key to high-tech industries and the global energy transition.

These discussions are happening as AGOA remains a major lifeline for Kenyan exports. The US House of Representatives approved a three-year extension in January 2026, running until 2028, after AGOA expired in September 2025.

The extension restores duty-free access for Kenyan goods, especially textiles and apparel, protecting thousands of jobs in export processing zones. While AGOA has mainly supported light manufacturing, Kenya believes a bilateral deal with the US could open the door to bigger investments in sectors such as mining and mineral processing.

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
Lofty Corban Debt Fund Pic 1
SMART MONEY

Lofty Corban New Private Debt Special Fund to Provide Credit to Investors

Lofty Corban has become the first investment banking company in East Africa...

Folded newspapers.
BUSINESS

Kenya’s Newspaper Readership Declines as Digital Media Takes Over

Kenya’s glory days of morning newspaper reading are fading, new data from...

National Treasury building. PHOTO/@KeTreasury/X
FEATURED STORY

Government Issues KSh 255 Billion Cheque to Clear Pending Bills

Government of Kenya has directed National Treasury to begin the process of...

A customer in Nairobi tops up on clean fuel at a KOKO Fuel ATM 1024x576
BUSINESSFEATURED STORYTECHNOLOGY

KOKO Fuel Vendors, Users Stranded as Government Pulls Plug

KOKO Fuel Vendors are staring at losses, empty shelves and huge cost...