Mining Minister Najib Balala announced the news Monday, adding that the country's Commissioner of Mines Moses Masibo had been suspended.
Balala, who has held the role since May, announced a concurrent increase in royalties on minerals mined within the small east African country.
“All the above changes are aimed at ensuring that the ministry creates a level playing field in the mining industry in the country,” Balala said.
Kenya has proven deposits of titanium, gold and coal, but its mining sector is a relatively small contributor to national output. Revenue has been forecast to grow as new mines are developed with recent discoveries of deposits such as copper and niobium.
Earlier in the year, Balala promised to review laws regulating the mining sector, following rumors of problems in the ministry’s licensing during a transitional period around the March election, when some ministers from the old government quit their positions and parliament was dissolved.
The Mining Ministry was set up after President Uhuru Kenyatta won power in the March election as part of a promise to broaden Kenya's economy.
According to the country’s Chamber of Mines, Kenya has more than 300 local and foreign firms prospecting for minerals or producing on a small scale, up from less than 30 two years ago.
The minister has assembled a task force to “undertake a comprehensive review” of all licenses issued from January to date.
The task force will assess the validity of the licenses, draft recommendations and report back to the ministry.
The new measures will not affect the oil and gas sector.