Kenya and the US near a deal to process critical minerals in Kenya

Kenya is in advanced talks with the United States on a critical minerals deal. The core condition is that the minerals are processed in Kenya rather than shipped out raw. Mining Cabinet Secretary Hassan Joho told Semafor about the talks, as reported on 29 September 2026.

Under the proposal, refineries and processing plants would be built in Kenya, and some of the processed minerals would be sold to the US market. Joho said the government would offer "special economic zones, port access, support infrastructure, and tax concessions." The US departments of Commerce, Defense and State are involved, according to Kenyans.co.ke.

Mrima Hill

The biggest prize is Mrima Hill in Kwale County, on the coast. It is thought to hold rare earths and niobium worth tens of billions of dollars. Six companies from the United States, Australia and China are bidding to develop it, and the government expects to finish the bidding in late October.

On 10 September, Frank Garcia, the US Assistant Secretary of State for African Affairs, said: "Critical minerals are a top priority for President Trump and Secretary Rubio, and we are ready to work with Kenya." Another US official said the Mrima Hill tender was "moving forward in a transparent manner", according to CNBC Africa.

Why it matters

President William Ruto first said the deal was close at the G7 summit in June. Mining makes up only about 1% of Kenya's economy, and the government wants to raise that to 10% within a decade. Processing at home would keep more of the value and jobs in Kenya. It also puts Kenya in the middle of the race between the US and China for the minerals used in batteries, electronics and defence. No deal has been signed yet.