Kenya and the United States are in the final stages of concluding a major minerals agreement that could unlock investment in strategic mineral resources, including the rare earth deposits found at Mrima Hills in Kwale County.
President William Ruto said the deal, which covers rare earth minerals and other critical resources, is expected to be completed soon following discussions with US President Donald Trump on the sidelines of the G7 Summit in Évian, France.
Speaking to Reuters, President Ruto said the two countries had reached an understanding on key areas of the agreement, which is aimed at promoting investment, industrial development and value addition in Kenya’s mining sector.
“We’ve agreed with them on what is mutually beneficial between Kenya and the United States, and President Trump and the American administration are happy with it,” Ruto said.
A major focus of the proposed partnership is ensuring that Kenya processes its minerals locally instead of exporting raw materials for refining and manufacturing abroad.
“The minerals will be processed in Kenya,” the President said.
The agreement is expected to have implications for Mrima Hills, a mineral-rich area in Kwale County believed to hold significant deposits of rare earth elements. The mineral resources in the region have been valued at approximately Ksh8.1 trillion, making it one of Kenya’s most strategic mineral zones.
President Ruto has been advocating for a new approach to Africa’s natural resources, arguing that the continent should move away from exporting raw minerals and instead develop local industries that create jobs and increase economic returns.
“Africa is not seeking partnerships built on the extraction of raw materials for processing elsewhere. We seek a different model of growth, one that creates value on our continent,” Ruto said.
He added that Africa should focus on processing minerals locally, manufacturing products within the continent, and building industries that generate employment while ensuring partnerships benefit both African countries and global investors.
“The 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 told world leaders at the G7 Summit.
The President said local processing of minerals would support job creation, strengthen industrial growth, and ensure communities benefit more from the resources found in their regions.
Kenya is seeking to position itself as a key player in the global critical minerals supply chain, with deposits that include rare earth elements, niobium, lithium, graphite, copper, and nickel.
These minerals have become increasingly valuable globally due to their use in electric vehicles, battery technologies, renewable energy systems and advanced manufacturing.
Ruto said Kenya’s engagement with the United States is focused on investment and industrial cooperation rather than traditional aid-based relationships.
“We are going to reject any relationships that are based on the extraction of our natural resources,” he said.
The proposed agreement comes as major economies, including the United States, China and European nations, compete for access to Africa’s critical minerals needed to support clean energy transitions and emerging technologies.
Despite the growing global competition, Ruto said Kenya would continue working with all partners based on what delivers the greatest benefits for the country.
“There are opportunities for everybody,” he said, adding that Kenya would prioritise partnerships that promote economic growth, industrialisation and job creation.
If finalised, the Kenya-US minerals agreement could mark a major milestone in the country’s efforts to develop a value-driven mining industry and maximise returns from its untapped mineral wealth.