Legal Framework for Environmental Management of Foreign Direct Investment in Kenya’s Mining Sector

Abstract

Foreign direct investment (FDI) is important for Kenya’s economic growth and development especially in Kenya’s mining. FDI inflows to Kenya’s mining sector has particularly grown because, Kenya is endowed with numerous mineral resources but largely lacks the expertise, equipment and manpower to exploit these minerals resources. It is thus undeniable that FDIs play a vital role in the contribution towards a country’s development by way of promoting technological spillovers, supply of requisite skills and managerial capabilities in Kenya’s mining sector that would be difficult to generate domestically; in tandem with the Sustainable Development Goals (SDGs). FDI legal framework in Kenya as relates to the mining sector inter-alia regulates entry requirements for which foreign companies must fulfil to be granted mining permits. It also provides for protection mechanisms to foreign companies once they have invested in a bid to provide a conducive environment for investment and trade in the country. However, as will be demonstrated in this study, there is a lacuna in law with respect to management and monitoring as far as regulating and monitoring these companies to ensure that they do not engage in activities that negatively affect the environment. This study will examine the efficacy of the legal framework for environmental management of FDI in Kenya’s mining sector, including the laws that provide for protection of the environment, environmental management and conservation. In order to achieve the above, the study endeavours to examine the interface between mining and environmental management as well as the effectiveness in the implementation of the existing legal framework.