Speaking on the sidelines of the G7 summit in Evian-les-Bains, France, on 17 June 2026, Kenyan President William Ruto revealed that his country was nearing a critical minerals agreement with the United States. Crucially, Nairobi is insisting that its rare earths, lithium, graphite, copper, nickel and niobium be refined and processed domestically rather than exported as raw materials.
The value-addition demand
Kenya's stance reflects a growing assertiveness among resource-rich African nations determined not to repeat a historical pattern in which raw ore is shipped abroad and the profitable processing, and the jobs that come with it, occurs elsewhere. By making domestic refining a condition, Nairobi is seeking to capture more of the value chain at home.
The demand aligns Kenya with a wider continental push. Namibia has prohibited exports of unprocessed lithium, cobalt, manganese, graphite and rare earths, while other governments are tightening rules to force local beneficiation.
Why the US is courting African minerals
Washington has been signing critical minerals frameworks around the world as it seeks to diversify supply chains away from dominant processing hubs. Demand for critical minerals is projected to surge, with lithium demand alone expected to rise by 353% between 2024 and 2040, making secure, diversified sources a strategic priority.
- Kenya nearing a critical minerals agreement with the US, Ruto said on 17 June 2026.
- Nairobi insists on domestic processing of rare earths, lithium, graphite, copper, nickel and niobium.
- Move mirrors Namibia's ban on exporting unprocessed minerals.
- US is diversifying mineral supply chains amid soaring projected demand.
The processing challenge
Insisting on domestic refining is easier to declare than to deliver. Building processing capacity requires substantial capital, reliable power, technical expertise and environmental safeguards. Kenya will need investment and technology partners to turn the principle into operational plants.
That is where negotiation becomes delicate. Buyers often prefer to control processing themselves, and reconciling Kenya's beneficiation goals with investors' preferences will shape the final terms of any deal.
Lessons from Indonesia
Kenya can point to Indonesia as proof the strategy can work. After banning exports of unprocessed nickel ore in 2020, Indonesia became a leading producer and exporter of processed nickel products and has targeted billions in mining and processing investment. The Indonesian example has become a reference point for governments seeking to move up the value chain.
A continental shift
Kenya's position is part of a broader recalibration in which African producers demand more than the role of raw-material supplier. If Nairobi secures a deal on its terms, it would reinforce a template other governments are already adopting, using access to strategic minerals as leverage for industrialisation.
The outcome will hinge on whether the US and its investors accept domestic processing conditions, and whether Kenya can marshal the infrastructure to make them viable. For now, the negotiations signal that the era of exporting raw ore without conditions is being actively challenged.