Kenya and the United States are nearing a strategic agreement on the development of critical minerals, with President William Ruto saying the proposed partnership will prioritise local processing to ensure the country derives greater economic value from its natural resources instead of exporting them in raw form.

Ruto said negotiations between Nairobi and Washington are at an advanced stage, adding that both countries have agreed in principle that minerals extracted in Kenya should be processed locally before export. “These natural resources can no longer be exported and processed elsewhere. They have to be processed in-country and in-continent. We have to create value out of them,” he said. Read more

Although the agreement has not yet been signed, it is expected to establish a framework for cooperation in the exploration, processing and responsible development of critical minerals, including rare earth elements, niobium, lithium, graphite, copper and nickel. These minerals are essential in the manufacture of electric vehicle batteries, wind turbines, solar panels, semiconductors and other advanced technologies, making them increasingly valuable as countries invest in clean energy and digital infrastructure.

The proposed partnership marks a significant shift in Kenya’s mining strategy. For decades, many mineral-producing countries have exported raw ores for processing abroad, allowing higher-value manufacturing, skilled employment and industrial growth to take place elsewhere. By insisting on domestic processing, Kenya aims to retain a greater share of the economic value generated from its mineral resources while encouraging investment in refining facilities and related industries.

The negotiations also reflect broader geopolitical efforts by the United States to diversify global supply chains for critical minerals, many of which are currently concentrated in a limited number of countries. As demand for strategic minerals continues to rise, Washington has sought closer partnerships with resource-rich countries to strengthen access to materials needed for the global energy transition and advanced manufacturing.

For Kenya, the agreement could open new opportunities for investment in mineral processing, industrial development and job creation. It also aligns with the government’s broader agenda of expanding the contribution of the mining sector to the national economy through increased exploration, value addition and responsible resource management.

However, the success of the partnership will depend on the final terms of the agreement and the country’s ability to support downstream processing. Industry analysts have consistently pointed to the need for reliable energy, transport infrastructure, skilled labour, transparent regulation and environmental safeguards to make large-scale mineral processing commercially viable.

The government has not indicated when the agreement is expected to be signed, and neither Kenya nor the United States has released the draft framework under negotiation. Once concluded, the partnership could become one of Kenya’s most significant mining agreements in recent years, reflecting a broader policy shift towards industrialisation and greater value addition in the country’s extractive sector.