Kenya in Advanced Talks with U.S. Over Critical Minerals Processing Deal

Kenya in Advanced Talks with U.S. Over Critical Minerals Processing Deal

Kenya is in advanced talks with the United States over a proposed critical minerals partnership that could lead to the establishment of refineries and processing plants in the country.

The arrangement could see minerals extracted in Kenya processed locally before some of the refined products are supplied to the US market, as Nairobi seeks to increase value addition and expand the contribution of mining to the economy.

Mining, Blue Economy and Maritime Affairs Cabinet Secretary Hassan Joho confirmed that discussions with Washington were at an advanced stage, involving several US government departments.

“Several departments of the U.S. government are involved in the discussion. Off-taker discussions are ongoing, several products, several markets, several different interests.”

Joho made the remarks in an interview with Semafor as Kenya explores ways of developing its critical minerals industry amid growing international demand for minerals used in manufacturing, technology, energy and defence.

Kenya Plans Local Mineral Processing

The proposed partnership is closely linked to Kenya’s push to process minerals locally instead of exporting them in raw form.

Joho said investors would require an enabling environment, including industrial zones, transport infrastructure and access to ports.

“There has to be all the necessary incentives that the government will provide, such as special economic zones, port access, support infrastructure, and tax concessions.”

The government has identified value addition as an important part of its mining strategy, with Joho previously calling for African countries to develop industries around their mineral resources rather than primarily exporting raw materials.

The United States has also indicated its willingness to support Kenya’s mineral-processing ambitions. US Assistant Secretary of State for African Affairs Frank Garcia said Washington was interested in partnerships involving investment, technology and local processing.

Mrima Hill at Centre of Deal

The proposed US-Kenya minerals partnership is closely connected to the development of Mrima Hill in Kwale County, one of the country’s key strategic mineral prospects.

Kenya’s Ministry of Mining has officially designated the 31.93-square-kilometre Mrima Hills area for large-scale mineral operations through a public tender. The minerals specifically identified for the tender are niobium and rare earth elements.

Government geological assessments have confirmed the presence of niobium and several rare earth elements at the site. The ministry’s technical documents also identify yttrium, thorium, strontium and lanthanum in the area.

Joho said six companies from the United States, Australia and China were competing for the Mrima Hill project. The government expects the bidding process to proceed before negotiations with the preferred bidder.

He described the proposed US minerals partnership and the Mrima Hill tender as “intertwined”, linking the project to Kenya’s wider plans for mineral processing and industrial development.

US and China Compete for Critical Minerals

The discussions come as competition increases between major economies seeking secure supplies of critical minerals.

The United States has been pursuing partnerships across Africa to diversify mineral supply chains, while China remains a major player in global mineral processing.

US officials have said American investment could bring capital, technical expertise and commercial relationships to Kenya’s mining sector.

For Kenya, the proposed arrangement could support investment in processing infrastructure while creating opportunities for technology transfer and skilled employment.

Joho said mining currently contributes about 1% of Kenya’s GDP, with the government targeting a much larger contribution over the next decade.

The talks also follow a meeting between President William Ruto and US Secretary of State Marco Rubio in New York, where the two countries discussed cooperation in critical minerals and other strategic sectors.

No final agreement has yet been publicly announced, and details on the value, ownership structure and specific facilities under the proposed partnership remain subject to ongoing negotiations.

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Kenya in Advanced Talks with U.S. Over Critical Minerals Processing Deal