21/06/2026
Kenya bets big on minerals deal with USA
A critical minerals deal between the USA and Kenya could reshape East Africa’s mining landscape.
By Leon Louw
Last week Kenya’s President William Ruto said that Kenya and the USA were close to concluding a critical minerals agreement.
President Ruto attended the G7 Summit in Évian-les-Bains, France. He made the remarks in an interview with Reuters after discussions with G7 leaders, including USA President Donald Trump.
According to President Ruto, the proposed deal will focus on investment and local processing of Rare Earth Elements (REE) and other critical minerals rather than exporting raw materials. This is in line with Kenya’s ambition to become a regional industrial hub.
Kenya offers the USA relative political stability, strong institutions, a pro-Western government and a good transport network including the Mombasa Port.
Nairobi already hosts major international organisations and serves as a diplomatic and logistics hub for the region.
President Ruto has made it clear in the past that Kenya wants foreign investors to process minerals locally to create jobs and to build industrial capacity.
For President Ruto, the deal offers increased foreign investment and manufacturing jobs for a growing and restless young population.
President Ruto’s tenure has been chequered, and the deal offers him an opportunity to cement his reputation as a leader capable of turning Kenya into an industrial powerhouse.
Kenya is one of Washington’s closest security partners in Africa and was designated a Major Non-NATO Ally in 2024. Deeper economic cooperation could reinforce existing defence and intelligence ties.
For East Africa improved infrastructure and local processing facilities will ensure greater integration into global supply chains for electric vehicles, renewable energy and advanced manufacturing.
Currently Kenya’s mining sector contributes only a small share of GDP and faces regulatory uncertainty, community disputes, infrastructure gaps and high electricity costs.
On the other hand, the country’s geology is promising, with good deposits of rare earths, niobium, titanium, graphite, copper and lithium.
Established operations such as Base Resources’ Kwale mineral sands mine demonstrate that large-scale mining can succeed in Kenya.
Image: Last week Kenya’s President William Ruto said that Kenya and the USA were close to concluding a critical minerals agreement. Image credit: Wikimedia Commons.
Leon Louw is the founder of WhyAfrica and Endorphin Expeditions and provides independent consulting services to investors, businesses and organizations seeking a deeper understanding of Africa's political, economic and natural resource landscape.
https://www.whyafrica.co.za/kenya-bets-big-on-minerals-deal-with-usa/