Kenya Nears a Critical Minerals Deal With the US to Process at Home

KENYA · MINING & GEOPOLITICS

Key Facts

—The deal: Kenya is close to an agreement with the United States to process its critical minerals at home rather than ship them out raw, President William Ruto said.

—Where he said it: Ruto spoke on the sidelines of the Group of Seven summit in June, saying the core terms were broadly accepted.

—The condition: Processing inside Kenya is a foundational requirement, and the deal would cover rare earths and other strategic minerals.

—Status: It is an advanced negotiation, not a signed treaty. Ruto said it could be finalised soon.

—The bigger picture: Africa holds close to a third of the world’s mineral reserves, including large shares of cobalt, manganese and graphite.

—The contest: The talks sit inside an intensifying race between Washington and Beijing for the minerals behind clean energy and defence.

Kenya is closing in on a critical minerals deal with the United States that would have its rare earths and strategic metals processed at home, President William Ruto said at the Group of Seven summit. The agreement, still being negotiated, would make domestic processing a condition of American access.

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What the Kenya critical minerals deal would do

Ruto said the two governments had reached a point where the core terms were broadly accepted. Processing on Kenyan soil is written in as a foundational condition.

The arrangement would cover rare earths and other strategic minerals. These are the inputs behind electric-vehicle motors, wind turbines and advanced weapons.

Speaking on the sidelines of this year’s Group of Seven summit, the president framed the deal as close but not yet signed. He told reporters it could be completed soon.

Why processing at home matters

For decades, African producers have shipped ore abroad and watched the profitable work of refining happen elsewhere. The value, and the jobs, left with the raw rock.

Kenya’s insistence on domestic processing is part of a broader continental shift. From Indonesia’s nickel to Congo’s copper, resource-rich governments increasingly want refining built where the minerals are dug.

Keeping more of the supply chain at home keeps more of its returns at home too. It also hands Nairobi leverage in a market where buyers now compete for supply.

A deal shaped by the US-China contest

The talks sit squarely inside the great-power race for the minerals behind the energy transition. Washington has spent the past year signing supply agreements across Africa as it tries to loosen China’s grip on processing.

China refines the majority of the world’s rare earths and dominates the midstream for several battery metals. American officials have made closing that gap a strategic priority.

For Kenya, the rivalry is an opportunity. Competing suitors give African governments room to set terms they could not have demanded a decade ago.

By one industry tally, the United States helped arrange more than $10 billion in critical-mineral agreements across five African countries in a single month this year. The pace shows how seriously Washington now treats the continent’s resources.

American backing usually comes bundled with financing and purchase guarantees. That kind of support can turn a refinery from a slide deck into a built plant.

What Kenya brings, and what is unresolved

Kenya is not yet a major minerals exporter, but surveys point to deposits of rare earths and other strategic metals. The government has been courting investment to map and develop them.

Much remains unsettled. A framework accepted in principle is not a signed contract, and the financing, environmental rules and revenue split still have to be worked out.

Officials have also yet to say which deposits the deal would cover or how quickly processing plants could be built. Those details will determine how much Kenya actually keeps.

Officials have pointed to rare earths, titanium-rich coastal sands and other metals as candidates. The country already mines titanium near the coast, a reminder that the geology is real even if the processing is not yet there.

What to watch next

The first test is whether a signed text follows the handshake, and on what timetable. Watch for the list of minerals, the site of any processing plant and the question of who funds it.

The second test is local. Kenyans will judge the deal less by the diplomacy than by whether refineries, wages and tax revenue actually appear at home.

Why it matters beyond Kenya

If it is completed, the agreement would be a template for how African states negotiate with outside powers. The message is value first, raw exports second.

It would also deepen a pattern visible from the copper belt to the coast. A new scramble for the continent’s resources is under way, and this time Africa holds some of the cards.

Frequently asked questions

What is the Kenya critical minerals deal?

It is a proposed agreement under which Kenya would process its rare earths and other strategic minerals at home in exchange for US access. President Ruto said the core terms were broadly accepted but the deal was not yet signed.

Why does Kenya want to process minerals at home?

Processing keeps the most profitable part of the supply chain, and the jobs that come with it, inside the country. It also gives Nairobi more leverage with foreign buyers.

How does the deal relate to US-China competition?

Washington has been signing minerals agreements across Africa to reduce its reliance on China, which refines most of the world’s rare earths. The Kenya talks are part of that wider contest.

Has the agreement been signed?

No. As of mid-2026 it was an advanced negotiation that Ruto said could be finalised soon, with financing and revenue terms still to be settled.

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