The United States is targeting a larger foothold in Africa’s resource sector by partnering with Kenya to build a domestic critical minerals processing industry, according to senior American officials.
This U.S. strategy involves leveraging state-backed funding and offtake agreements—arrangements where a nation or corporation secures a portion of a mine’s output in exchange for capital—to compete with Chinese enterprises across the continent. Washington now increasingly looks at owning these resources or securing guaranteed access to them as a vital national security objective connected to the energy transition and supply chain strength, rather than merely a commercial pursuit.
Kenya Evaluates Bids for the Mrima Hill Rare Earth Deposit
Kenya is currently evaluating international bids for the coastal Mrima Hill deposit, an asset projected to hold tens of billions of dollars in rare earth elements and niobium, a metal used in aerospace manufacturing, according to government disclosures. Frank Garcia, the U.S. assistant secretary of state for Africa, told a meeting of the American Chamber of Commerce in Kenya that Washington is ready to support Nairobi as a regional leader in the sector.
“Critical minerals are a top priority for President Donald Trump and Secretary of State Marco Rubio, and we are ready to work with Kenya as it becomes a regional leader in this space,” Garcia said, as reported by Reuters. Garcia emphasized that Washington wants to help build a transparent mining sector that respects local communities and secures global supply chains through partnerships rather than unilateral extraction.
U.S. and Australian Consortia Vie for Development Rights
Washington and Nairobi share an aligned vision for how the mining sector should be developed, according to remarks made by Chris Kulukundis, who serves as the U.S. acting deputy assistant secretary of state for Southern Africa and critical minerals. Kulukundis noted that the Mrima Hill tender process is proceeding transparently, with two U.S. consortia among the applicants vying for the project.
“Some of our competitors are efficient at one thing: pulling minerals out of the ground, whisking them offshore and capturing all value addition far away from the lands from which the minerals originated,” Kulukundis said. In July, Australia’s RareX and U.S.-based Critical Metals Corp announced they were selected to compete for the Mrima Hill rights. Harry Kimtai, senior secretary for Kenya’s state department of mining, confirmed six businesses are in the running, including two American firms, though the official shortlist remains unreleased.
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President Ruto Confirms Mandate for Local Processing
Kenyan President William Ruto addressed the mining developments during the G7 summit on the shores of Lake Geneva, confirming that discussions with U.S. officials are advancing toward a formal agreement. Ruto told Reuters that the central condition of the partnership requires all extracted minerals to be processed locally within Kenya.
“We have agreed that the minerals will be processed in Kenya,” Ruto said. Beyond rare earths and niobium, Kenya has identified deposits of lithium, graphite, copper, and nickel.
Broader U.S. Strategy Across African Mineral Corridors
The diplomatic push in Kenya mirrors a broader U.S. strategy to challenge Chinese resource control in Zambia, Guinea, and the Democratic Republic of Congo (DRC). By utilizing offtake pacts—such as agreements involving trader Mercuria and Congolese state miner Gécamines—the U.S. aims to direct mineral output into allied supply chains without exposing American operators to high-risk jurisdictions.
Frequently Asked Questions
What critical minerals has Kenya discovered?
Kenya has identified deposits of rare earth elements, niobium, lithium, graphite, copper, and nickel, according to government reports.
Who is competing for the Mrima Hill project?
Australia’s RareX and U.S.-based Critical Metals Corp are among the competitors, with Kenyan officials confirming six total applicants, including two American consortia.
What is an offtake agreement?
An offtake agreement is a commercial arrangement where a buyer secures the right to a portion of a mine’s future production in exchange for financial backing or investment.
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