The United States has pledged to help Kenya develop a critical minerals processing industry, signaling Washington’s growing engagement with the East African nation’s mining sector. The announcement came amid ongoing competition between the United States and China over access to critical minerals that are essential to global technology and defence supply chains.
Frank Garcia, assistant secretary of state for Africa, said at a meeting of the American Chamber of Commerce in Nairobi that the United States was ready to work with Kenya as it builds its Kenya critical minerals sector. Garcia described critical minerals as a top priority for the current U.S. administration and stressed Washington’s willingness to support a mining sector that is transparent, attracts legitimate businesses, respects communities and helps secure global supply chains.
Mrima Hill Deposit and the Tender Process
Kenya is currently considering bids to develop the coastal Mrima Hill deposit, which is expected to contain tens of billions of dollars’ worth of rare earth minerals and niobium, a metal widely used in aerospace manufacturing. The Mrima Hill deposit has drawn significant international interest as Kenya positions itself as a potential hub for critical minerals processing and value addition.
Two companies, one from the United States and one from Australia, said in July that they had been shortlisted to compete for the rights to develop the Mrima Hill deposit. Kenya’s government has not published a formal shortlist. However, Harry Kimtai, the principal secretary for Kenya’s state department of mining, confirmed at the same meeting that six companies were on the list, including two from the United States.
Chris Kulukundis, the U.S. acting deputy assistant secretary of state for Southern Africa and critical minerals, said the Mrima Hill tender process was moving forward in a transparent manner. He noted that two U.S. consortia could potentially develop the project if selected and if successful. This language underscored that no awards have been made and the process remains ongoing.
U.S. Backing for Rare Earth Projects and Local Processing
The U.S. International Development Finance Corporation is also backing a pipeline of African rare earth minerals projects as Washington seeks to reduce its dependence on China, which dominates the global supply chain for critical minerals processing and has tightened export controls in recent years. Garcia stated that building strength in rare earth minerals and energy required partnership rather than unilateral action.
Kenya’s President William Ruto welcomed U.S. support and said local processing of minerals would help his government create jobs. Ruto outlined that Kenya was accelerating the responsible exploration and development of rare earth elements, titanium, graphite, lithium, niobium and other strategic resources. These efforts reflect Kenya’s broader ambition to move beyond raw material exports and develop downstream value within its own borders.
Garcia added that the United States favoured a mining development model that includes local processing and value addition in producing countries. He contrasted this approach with competitors he described as focused on extracting minerals and capturing all value addition far from the countries where the resources originate. China, which has faced criticism from some governments and advocacy groups over exporting raw minerals for processing elsewhere, has rejected such accusations.
Kenya and the United States were reported in June to be close to sealing a Kenya critical minerals deal, though neither side provided an update on the agreement at the Nairobi meeting.