Kenya, US in Advanced Talks to Build Critical-Minerals Processing Hub — Minister

Talks that would see the United States help develop a critical-minerals processing industry in Kenya are at a "very advanced" stage, Kenya's mining minister, Hassan Ali Joho, told Semafor. Nairobi is pursuing local processing capacity to boost mining's contribution to the national economy and capture greater value from its resources.

What Officials Are Discussing

Joho said discussions with multiple U.S. agencies — including the Departments of Commerce, Defense, and State — are focused on creating refineries and processing plants in Kenya that could partly supply U.S. demand. "Several departments of the U.S. government are involved in the discussion," he said. "Off-taker discussions are ongoing — several products, several markets, several different interests."

Incentives And Operating Environment

When asked about likely terms, Joho said the Kenyan government would offer incentives to attract investment, such as special economic zones, port access, supporting infrastructure, and tax concessions. Those measures are intended to make local processing commercially viable and encourage long-term industrial development.

Mrima Hill And The Bidding Process

Joho said the proposed partnership on critical minerals is "intertwined" with the bidding to develop Mrima Hill, a coastal deposit believed to hold tens of billions of dollars' worth of rare-earth minerals. Early geological studies indicate the presence of niobium — used in aerospace manufacturing — and initial assessments point to cobalt, copper, and nickel in Kenyan deposits.

Six companies are competing to develop Mrima Hill, including bidders from the United States, Australia, and China. The bidding is expected to conclude in late October, after which Kenya plans to enter negotiations with a preferred bidder to finalize terms.

Economic Goals And Policy Context

Mining currently contributes roughly 1% of Kenya's GDP; the government aims to increase that share to about 10% within a decade. Joho framed local processing as a pathway to industrialization and broader wealth creation: "We are diversifying: we have been a service economy, we have been an agro economy; but now we are keen on opening up the mining sector."

President William Ruto has prioritized industrialization and local value addition ahead of next year's elections. This month he ordered Tata Chemicals to "pack up and leave," accusing the company of exporting soda ash rather than processing it locally to produce glass and local jobs. Tata denies the allegation. Joho previously ordered the temporary suspension of one Tata plant over alleged regulatory failings and said continued talks with the firm on compliance will determine its future in Kenya.

Geopolitics And Broader Trends

Washington has announced agreements with several African countries — including the Democratic Republic of Congo, Nigeria, and Zambia — to secure access to minerals it considers critical for data centers, defense equipment, and the energy transition. Those moves come amid an intensifying U.S.–China rivalry, with Beijing currently dominant in many mineral supply chains.

Across Africa, governments are increasingly focused on local value addition rather than exporting raw ores, seeking to strengthen processing capacity and capture more of the economic benefits of their mineral resources. A Brookings Institution report warned that the U.S. needs a more strategic approach to unlock private investment in African critical minerals to avoid falling behind on long-term economic and strategic goals.

Implications

If finalized, a U.S.–Kenya partnership on processing capacity could accelerate Kenya's industrialization push, create domestic jobs, and shift regional supply dynamics for critical minerals. The outcome will depend on the bidding process for Mrima Hill, investor confidence in Kenya's incentives and regulatory environment, and the broader competition between major powers for secure access to raw materials.