Chunya. In an effort to empower small-scale miners, the government has revoked 1,505 mining licenses in Chunya District, Mbeya Region, citing neglect and abandonment of allocated plots.
The Ministry of Minerals announced that the revoked areas will now be redistributed to small-scale miners, known locally as MBEREMA.
Chunya, rich in gold deposits, is crucial to the economic growth of both the region and the country. However, many mining plots had been left underutilized by wealthy operators, known as ‘Madigala’, depriving small-scale miners of opportunities.
Chairman of the Mbeya Small-Scale Miners Association (MBEREMA), Saddam Kyando, praised the government’s decision, calling it a game-changer for local miners. “This move opens doors for many miners who have struggled without proper licenses. We are focused on encouraging miners to join MBEREMA to fully benefit from these allocations,” Kyando said. He also announced plans to establish association branches across the district and work with local ward offices to mobilize miners.
Msabira Miraji, a gold buyer in Chunya, welcomed the initiative but urged the government to introduce banking services at the local mineral market. “This will improve efficiency and ensure the safety of our earnings,” he said.
Mbeya Regional Mining Officer Laurent Mayala lauded the redistribution process, which addresses the challenges of small-scale miners who lacked access to mining plots. District Commissioner Mbaraka Batenga explained that the move aims to better utilize Chunya’s abundant resources, which include gold and agriculture, especially tobacco farming.
Highlighting mining’s role in national revenue, Batenga emphasized that empowering small-scale miners will contribute to sustainable economic growth and strengthen Chunya’s economic impact.
The government’s decision reflects a commitment to fostering inclusivity in the mining sector, addressing long-standing issues faced by small-scale miners.
Share this news
This Year's Most Read News Stories
Zanzibar liquor importers face fresh hurdle despite court order
The liquor shortage in Zanzibar is far from over, even after a court order granted relief to the three importers.Continue Reading
The reason internet speeds in Tanzania still lag behind
Vodacom Tanzania was placed 16th at 17. ’08 Mbps, while Airtel Tanzania was ranked 18th available on 12. 89 Mbps.Continue Reading
Britam half-year net profit hits Sh2bn on higher investment income
Insurer and financial services provider Britam posted a 22.5 percent jump in net earnings for the half-year ended June 2024, to Sh2 billion, buoyed by increased investment income.
The rise in half-year net profit from Sh1.64 billion posted in a similar period last year came on the back of net investment income rising 2.5 times to Sh13.27 billion from Sh5.3 billion.
“We are confident in the growth and performance trend that Britam has achieved, supported by its subsidiaries in Kenya and the region. Our business is expanding its revenue base while effectively managing costs,” Britam Chief Executive Officer Tom Gitogo said.
“Our customer-centric approach is fueling growth in our customer base and product uptake, particularly through micro-insurance, partnerships, and digital channels.”
The investment income growth was fueled by interest and dividend income rising 34 percent to Sh9.1 billion, which the insurer attributed to growth in revenue and the gains from the realignment of the group’s investment portfolio.
Britam also booked a Sh3.79 billion gain on financial assets at a fair value, compared with a Sh1.8 billion loss posted in a similar period last year.
The increased investment income helped offset the 12.7 percent decline in net insurance service result to Sh2.13 billion in the wake of claims paid out rising at a faster pace than that of premiums received.
Britam said insurance revenue, which is money from written premiums, increased to Sh17.8 billion from Sh16.6 billion, primarily driven by growth in the Kenya insurance business and regional general insurance businesses, which contributed 30 percent of the revenue.
The group has a presence in seven countries in Africa namely Kenya, Uganda, Tanzania, Rwanda, South Sudan, Mozambique, and Malawi.
Britam’s insurance service expense hit Sh13.6 billion from Sh11.3 billion, while net insurance finance expenses rose 2.6 times to Sh12.3 billion during the same period.
“Net insurance finance expenses increased mainly due to growth in interest cost for the deposit administration business driven by better investment performance. This has also been impacted by a decline in the yield curve, which has led to an increase in the insurance contract liabilities. The increase has been offset by a matching increase in fair value gain on assets,” said Britam.
Britam’s growth in profit is in line with that of other Nairobi Securities Exchange-listed insurers, which have seen a rise in profits.
Jubilee Holdings net profit in the six months increased by 22.7 percent to Sh2.5 billion on increased income from insurance, helping the insurer maintain Sh2 per share interim dividend.
CIC Insurance Group posted a 0.64 percent rise in net profit to Sh709.99 million in the same period as net earnings of Liberty Kenya nearly tripled to Sh632 million from Sh213 million, while Sanlam Kenya emerged from a loss to post a Sh282.2 million net profit.
