MADINI WAZI BASELINE ASSESSMENT REPORT Prepared by: Enzi Extractives and Energy Group Presented To 1 TABLE OF CONTENTS EXECUTIVE SUMMARY 1 1.0 INTRODUCTION 2 1.1 Objective of the Study 2 1.2 Methodology 2 2.0 MADINI WAZI BASELINE SURVEY: KWALE COUNTY 4 2.1 Contextual Analysis 4 2.2 Study Focus 12 2.2.1 Emerging issues and concerns 12 2.2.2 Land – Relocation and compensation 12 2.2.3 Environment 13 2.2.4 Resettlement Action Plans 14 3.0 Base Titanium 16 3.1 Social Investments 16 3.2 Position on the Environment 17 3.3 Position on Waste Management 17 3.4 Decommissioning and Rehabilitation 18 3.5 Company Grievance mechanism 18 Stakeholder committees 19 Sub-County Liaison Committees 19 3.6 Community Awareness 20 3.7 Benefits to the Community Accruing from Resource Extraction 20 3.7.1 Company Social Investment 20 3.8 Employment 23 Locals and local businesses 23 3.9 Skills Building and Education 24 Comunity Training 25 4.0 Revenues 26 4.1 Revenues to the Community in Terms of Social investments 26 4.2 Revenues to the National Government 26 5.0 MAPS 31 5.1 Licenses 31 5.2.1 SW Sector of PL/2018/0119 (formerly SPL 173) 33 5.2.2 NE Sector of PL/2018/0119 33 2 5.2.3 PL/2015/0042 33 6.0 Recommendations for Madini Wazi Platform 34 7.0 CONCLUSION 35 Annex 1: Copy of NEMA report on water 36 Annex 2: Stakeholders consulted 38 Annex 3: List of Social Investment Projects undertaken in Kwale County by Base Titanium 40 3 EXECUTIVE SUMMARY In creating the Madini Wazi platform, the underlying assumption is that when citizens have access to information, such access creates accountability, uncovers and discourages corruption, and provides checks and balances in the extractives sector. This platform therefore provides a novel way by which technology can improve accountability and transparency. It allows citizens to engage with the extractives sector in a transparent, accessible and accountable way. It is a unique initiative that seizes the opportunity to empower citizens and harnesses the power of new technologies to make government and companies operating in the extractives sector more effective and accountable. Kwale is home to the Base Titanium mineral sands project. As a mining company with a large footprint in the County, Madini Wazi has collected information on its activities with regard to the social and environmental impact safeguards that it has put in place. Also, information on size and area of mine pit locations, mine licenses, revenues paid to the national governments, as well as social investments in the communities where they operate. This will ensure that those interested in data on mining in Kwale can have access to the information on the platform as well as monitor progress overtime. The study established that there is a wealth of information on the social investment of Base Titanium in Kwale as well as gaps in knowledge on the part of project affected communities. The research identified the following: limited knowledge on the social investment projects by the company; ignorance of the grievance handling mechanism and how it operates; perceived poor land adjudication process; and poor community participation in extractive sector operations and on the corporate social responsibility for their benefit. Presence of Base Titanium in Kwale County has had an impact on livelihoods of Kwale residents through employment opportunities, provision of education scholarships, construction of healthcare facilities and schools and sinking of boreholes. There are committees formed and involved in addressing any grievances and engaging community members to participate in decision making around social investment but there is need to train the community representatives on awareness creation on community participation and benefit-sharing. 1 1.0 INTRODUCTION About Madini Wazi Project ‘Madini Wazi’ is a Swahili word that literally means mineral transparency. The Madini Wazi project aims to develop a media and technology-based platform/tool for the governance of the extractives sector based on the voices of citizens. The platform aims to bridge the information gap by providing simplified and disaggregated information about the extractives sector, amplify the voices of host communities and civic groups to authorities and regulatory agencies as well as support the response capacity of decision-makers at both government and private sector levels to address the issues that require their attention. This baseline survey is a critical phase in the development of Madini Wazi platform to enable gathering of important preliminary data and information required for the platform database. The Madini Wazi technology-based platform has been piloted through this baseline survey in Kwale County targeting Kwale Base Titanium Company and project affected community, relevant institutions, agencies, professionals, and leaders in Kwale. 1.1 Objective of the Study The baseline study in Kwale, commissioned by ECONEWS AFRICA was to: generate sufficient information for the interface that will be displayed on platform as part of an initiative to improve information sharing, with the aim of encouraging transparency and accountability in the sector. The aim of Madini Wazi tool is to: i. Amplify the voices of the local host community to strategically engage with key stakeholders namely companies, government and civil society organizations ii. Provide a monitoring framework to enable local communities to monitor performance relating to human rights issues iii. Act as a grievance reporting tool for local communities. iv. Offer direct feedback and evidence for dialogue with stakeholders in the extractive sector 1.2 Methodology The collection of data for the field research required a variety of methods and involved different sources and stakeholders in order to capture a range of perspectives. This included gathering relevant statistics from Kenya National Bureau of Statistics as well as from the investor and the Department of Mining at the Ministry of Mining and Petroleum. 2 Primary data collection was conducted through: Desktop review of existing literature relevant to titanium mining in Kwale County. Key informant interviews and meetings conducted with stakeholders within the government (both at national and county level), the Civil Society Organizations (CSOs) both at the national and county level, and the mining company (Base Titanium). Focus group discussions conducted with the communities directly or indirectly affected by the mining activities of Base Titanium. These include selected communities that have been resettled by the mining company, as well as select communities in Bwiti, Mrima Hills, Nguluku, Masindeni and the members of the Msambweni Liaison Committees (MLC). The above data collection methods and sources of information are highlighted in the stakeholder engagement plan presented in the Annex 2. 3 2.0 MADINI WAZI BASELINE SURVEY: KWALE COUNTY 2.1 Contextual Analysis County government structure Kwale County is located in the coastal region of Kenya and covers a total surface area of 8,270.2 square Kilometres (km), accounting for 1.42 per cent of Kenya’s total surface area, excluding the Exclusive Economic Zone coastal strip of 200 miles. Its capital, Kwale town is located 30 km southwest of Mombasa, with other major towns in the county being Ukunda, Msambweni, Kinango, and Lunga Lunga. Kwale County is divided into three administrative Sub-counties namely Matuga, Kinango, and Msambweni. The three sub-counties are further divided into a total of nine divisions, 37 locations, and 84 sub locations as indicated in table 1 below. Table 1: Area and Administrative Units by Constituency Sub county Constituenc Division Area (KM2) No. of No. of y locations sublocati ons Matuga Matuga Matuga 342.1 6 12 Kubo 472.8 6 16 Shimba Hills 216.3 - - National Reserve Total 1031.2 12 28 Kinango Kinango Samburu 1,803.1 5 10 Kasemeni 592.0 5 12 Kinango 1,060.7 3 6 Ndavaya 555.9 1 4 Total 4011.7 14 32 Msambwen Msambweni Msambweni 346.3 4 10 i Diani 232.4 2 5 Lunga - Lunga - 2648.5 5 9 Lunga Lunga Total 3227.2 11 24 Total 8270.2 37 84 Source: Kwale County Integrated Development Plan 2013-2017 Infrastructure Of the County’s 1,483 km of classified roads, 187.7 km is Bitumen surface, 425.5 km (29 per cent) is gravel, and 871.2 km (58 per cent) is earth surface. The county has, 4 km of railway and 4 airstrips of which only one is in use. Only 3.6 per cent of households in the county have electricity connections, with most households highly relying on wood and paraffin/kerosene as energy sources for 4 cooking and lighting. It is estimated that paraffin and or kerosene is used by 95.5 per cent of households for lighting whereas wood is used by 80.2 per cent for cooking.1 Population Kwale’s population as per 2009 Census was 649,931 persons. The total population of Kwale County is projected to be 713,488 persons in 2012 comprising of 346,898 males and 366,589 females, a 9.8 percent increase from 649,931 in 2009. The county population growth rate is 3.1 percent, and the sex ratio is 95 males per 100 females2. An analysis of the Kwale population structure reveals a remarkable youthful character. The under 15 years in 2012 constituted 47.23 per cent of the total population while the proportion of the elderly (over 60 years of age), accounted for only 4.95 per cent in the same year. Table 2 below shows population projections for selected age groups by sex that are important for planning purposes3. Kwale County is inhabited mainly by the Digo and Durumas who are the natives but other communities such as the Kamba, Kikuyu, Watharaka, Luo, and even whites have a significant presence.