Persons applying for a license relating to small scale mining operations should be a Kenyan citizen or a body corporate where 60% of the shares are held by Kenyan citizens. With respect to large scale mining operations, the licensee is required to list at least 20% of its equity on a local stock exchange within three years after commencement of production.
"4. Interpretation
In this Act, unless the context otherwise requires—[...]
"artisanal mining" means traditional and customary mining operations using traditional or customary ways and means;
"artisanal mining permit" means a permit issued under section 95; [...]
"large scale operation" means a prospecting or mining operation that is a large scale operation in accordance with this Act; [...]
"mineral" means a geological substance whether in solid, liquid or gaseous form occurring naturally in or on the earth, in or under water, in mine waste or tailing and includes the minerals specified in the First Schedule but does not include petroleum, hydrocarbon gases or groundwater; [...]
"mineral right" means— (a) a prospecting licence; (b) a retention licence; (c) a mining licence; (d) a prospecting permit; (e) a mining permit; or (f) an artisanal permit; [...]
"small scale operation" means a prospecting or mining operation as described by the Second Schedule to this Act;
"strategic minerals" means minerals declared to be strategic minerals under this Act
[...]
PART III – GENERAL PRINCIPLES
10. Restrictions on the acquisition of mineral rights
A person shall not search for, prospect or mine any mineral, mineral deposit or tailings in Kenya unless that person has been granted a permit or licence in accordance this Act.
11. Acquisition of rights in minerals
(1) A mineral right may be granted to or be held by a person who— [...]
(d) has the required technical capacity, expertise, experience and financial resources, however this shall not be a requirement for artisanal and small scale mining operations wholly owned by Kenyans; and [...]
(2) A mineral right may be granted to or be held by a company which—
(a) is registered and established in Kenya;
(b) has not commenced voluntary winding up pursuant to the Companies Act (Cap. 486);
(c) is not subject to winding up by a court pursuant to the Companies Act (Cap. 486); or
(d) is not in liquidation.
(3) Subject to subsection (2), the directors of the company shall be required to demonstrate the required technical capacity, expertise, experience and financial capacity.
(4) The provisions of subsections (1)(d) and (3) shall not apply to artisanal miners.
(5) In this section the word "established" means that the company is—
(a) operating in the registered office subject to the provisions of the Companies Act (Cap. 486); and
(b) in operation within Kenya.
[...]
PART VI – GENERAL PROVISIONS ON MINERAL RIGHTS [...]
48. Government participation in mining licence
(1) Where a mineral right is for a large scale mining operation, the State shall acquire ten percent free carried interest in the share capital of the right in respect of which financial contribution shall not be paid by the State.
(2) The provisions of subsection (1) shall apply to large scale mining operations and to mining operations relating to strategic minerals.
(3) Subsection (1) shall not preclude the State from any other or further participation in mining and operations which shall be agreed with the holder at arm's length.
(4) The Cabinet Secretary shall make regulations to provide for state participation in mining or prospecting operations between the Government and the holder of a mineral right.
49. Local equity participation
(1) The Cabinet Secretary shall prescribe the limits of capital expenditure for the purpose of this section.
(2) A holder of a mining licence whose planned capital expenditure exceeds the prescribed amount shall list at least twenty percent of its equity on a local stock exchange within three years after commencement of production.
(3) The holder of a mining licence may apply in writing to the Cabinet Secretary to execute an equitable alternative mechanism that will allow the company to meet the requirement set in subsection (1), including an extension of time.
(4) The Cabinet Secretary, may after consultation with the National Treasury extend the period set out in subsection (2), for reasons that the market conditions do not allow for a successful completion of the offering in the local stock exchange.
[...]
Artisanal Miners Operations
95. Qualification of applicants for an Artisanal Mining Permit
(1) A permit for an artisanal mining operation shall be granted to a person who—
(a) is a citizen of Kenya;
(b) has attained the age of majority; and
(c) may be a member of an artisanal mining cooperative association or group.
[...]
122. Distinction between large scale operations and small scale operations
The Cabinet Secretary shall apply the criteria set out in the Second Schedule for the purpose of distinguishing between small scale and large scale operations.
Small Scale Operations
123. Categories of mineral rights relating to small scale operations
The following types of mineral rights may be granted in respect of authorising small scale operations—
(a) a reconnaissance permit;
(b) a prospecting permit; and
(c) a mining permit.
124. Eligibility for mineral rights relating to small scale operations
(1) A person shall not be granted or be entitled to hold or acquire an artisanal mining permit, a prospecting permit or a mining permit under this Part unless that person is—
(a) a citizen of Kenya; or
(b) a body corporate, where no less than sixty percent of the shareholding is held by citizens of Kenya.
(2) An artisanal mining permit, prospecting permit or a mining permit shall cease to be valid when its holder or any of its holders is or becomes ineligible for the grant of a permit.
[...]
SECOND SCHEDULE [s. 4]
CRITERIA FOR DETERMINING SMALL SCALE PROSPECTING AND MINING OPERATIONS
1. A prospecting or mining operation or a proposed prospecting or mining operation shall be classified by the Cabinet Secretary as a small scale operation for the purposes of this Act where—
(a) in the case of prospecting operations, the proposed prospecting area does not exceed twenty five contiguous blocks; or
(b) in the case of mining operations, the proposed mining area does not exceed two contiguous blocks. 
2. Notwithstanding paragraph (1), a prospecting or mining operation or a proposed prospecting or mining operation may also be classified as a small scale operation for the purposes of this Act where—
(a) in the case of prospecting operations, the proposed prospecting area does not exceed twenty five contiguous blocks; or
(b) the prospecting or mining operations do not employ specialised prospecting, mechanised mining technologies, chemicals including mercury and cyanide or explosives; or
(c) the proposed prospecting or mining operations, do not involve an investment or expenditure which exceed such amount as may be prescribed by the Cabinet Secretary.
3. Proposed prospecting operations or mining operations that do not have or will not have any of the characteristics of a small scale mining operation as specified in paragraphs 1 or 2 shall be classified as a small scale operation.[...]" (Mining Act No 12 of 2016)
Mining Act No 12 of 2016
[<a href="http://kenyalaw.org:8181/exist/kenyalex/actview.xql?actid=CAP.%20306">Act</a>]