NAIROBI, Kenya — Kenya and the United States are close to a major critical minerals agreement that could open the way for investment in rare earth resources, including deposits at Mrima Hills in Kwale County, estimated to hold billions of dollars in mineral value.
President William Ruto said the deal with US President Donald Trump will focus on rare earth elements and other strategic minerals, with an emphasis on processing the resources locally instead of exporting raw materials.
Speaking to Reuters, Ruto said the agreement would be finalised soon and would create a framework that benefits both countries.
“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.
He added that Kenya had agreed that minerals extracted in the country would be processed locally.
Push for value addition
Addressing leaders at the G7 Summit, Ruto said Africa must move away from a model where raw resources are exported, and value is created elsewhere.
“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 said.
The President argued that local processing would support industrial growth, create jobs, and ensure communities benefit more directly from natural resources.
The proposed shift aligns with Kenya’s broader strategy to position itself as a regional hub for mineral processing and manufacturing.
Kenya has identified potential deposits of rare earth elements, niobium, lithium, graphite, copper, and nickel — minerals that are increasingly important in electric vehicle production, renewable energy systems, batteries, and advanced technologies.
Mrima Hills potential
Mrima Hills in Kwale County has attracted interest because of its rare earth mineral deposits, which are considered strategically important in global technology supply chains.
The area has previously been identified as having significant mineral potential, although extraction has remained subject to environmental, regulatory, and community considerations.
The government has maintained that future mining projects must provide economic benefits while protecting local ecosystems and communities.
Competing global interests
The discussions come as major economies, including the United States, China, and European countries, compete for access to Africa’s mineral resources needed for the global energy transition.
Ruto said Kenya would pursue partnerships based on investment and industrialisation rather than dependence on foreign assistance.
“We are going to reject any relationships that are based on the extraction of our natural resources,” he said.
He pointed to developments in the Democratic Republic of Congo, where authorities have pushed for greater local processing of minerals instead of exporting raw materials.
The President said Africa should welcome partnerships from different global players without being forced into geopolitical rivalries.
“There are opportunities for everybody,” Ruto said, adding that Kenya’s priority would be agreements that support its economic interests.
