The United States President Donald Trump’s administration has backed Kenya’s new regulation, which requires foreign companies to process minerals locally instead of exporting them raw.

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U.S. Assistant Secretary of State for African Affairs Frank Garcia on Wednesday, September 9, said American companies were ready to partner with Kenya in processing its minerals locally while creating jobs for residents.

“American companies are not here to extract and ship. That is not partnership, that is extraction,” Garcia said while speaking at the American Chamber of Commerce Business Summit in Nairobi.

His remarks come as President William Ruto’s administration is pushing for local processing of the country’s minerals, including soda ash from Lake Magadi in Kajiado County.

📌 What You Need to Know

The government has been seeking to move away from a model where minerals are extracted and exported as raw materials, with Ruto calling for investors to establish industries that process the minerals in Kenya.

The move comes amid an ongoing government dispute with India’s Tata Chemicals over its Lake Magadi operations, with Ruto criticising the company’s extraction of soda ash, arguing that Kenya has not benefitted enough from the firm’s existence in the country.

Following the move, the Head of State on September 3 ordered Tata Chemicals to exit the country, accusing it of economic exploitation.

Meanwhile, in his speech, Garcia said the U.S. strongly supports Ruto’s approach where mineral processing takes place in the country where resources are extracted, urging foreign firms to comply.

“We want processing done right here on the ground in Kenya, not thousands of miles away,” Garcia said.

Garcia also praised Kenya’s planned competitive process for minerals at Mrima Hill in Kwale County, saying the U.S. was ready to support a transparent mining sector that respects communities and attracts legitimate investors.

📰 Source: Kenyans.co.ke