Several mining companies have yielded to government pressure and settled part of their unpaid levies, with a new report showing Sh273 million was collected between 2023 and 2024 following enforcement actions by the State Department for Mining.

The Auditor-General’s report shows that the companies—Tata Chemicals Magadi, Carbacid, East African Portland Cement (EAPC), and African Diatomite Industries—responded to demand letters and threats of suspension, with at least one firm having its operations halted over non-payment.

Despite the payments, the Sh273 million recovered still falls far below the Sh2.78 billion the government was owed by end of June 2023, according to the Auditor-General.

Among the firms, soda ash producer Tata Chemicals Magadi is reported to have paid the highest amount, although a full reconciliation of the payment is still pending.

“The management status report indicates that state department has collected Sh715,333,516 from Tata Magadi as at 27 September, 2024, however, the receipts attached indicate that that management received Sh229,763,240 in the months of July 2023 to March 2024 from Tata Magadi,” the report notes.

This leaves Sh485.57 million that the State says it has received from Tata but which is yet to be fully confirmed by audit records.

Carbacid, a company involved in the processing of natural carbon dioxide gas, had paid Sh32.6 million by September 2024, the report says. The Auditor-General observed that this was still below the Sh94.9 million it owed in arrears as of June 2023.

“The recommendation is partially implemented as the amount due from Carbacid (CO2) Ltd is not fully recovered as management has recovered Sh32,614,900 and the status report was submitted to the National Assembly,” Auditor-General Nancy Gathungu notes.

African Diatomite Industries, which deals in diatomaceous earth products, paid Sh10 million out of a total debt of Sh17.5 million. The report indicates that the Ministry suspended its operations in September 2023 to compel the firm to pay.

“The management submitted that the Ministry on 12 September, 2023 suspended their operations due to non-payment of royalty. The company paid arrears to the tune of Sh10,000,000 on 20 November, 2023. The Ministry continues to engage the company to clear the arrears,” the report says.

The East African Portland Cement Company, which had accrued Sh370.8 million in unpaid levies by June 2024, is reported to have paid only Sh700,000. However, it has since committed to making monthly payments of Sh3.3 million.

EAPC made the commitment after receiving a demand notice from the State Department for Mining, which said it is now considering legal action to recover the outstanding balance.