Kenya to Pocket Ksh801M from Kakamega Gold Discovery

Kenya is set to pocket Ksh 801 million in fresh revenue after the discovery of massive gold deposits in Kakamega County by British miner Shanta Gold.

The windfall will come from Ksh 607.2 million in royalties and Ksh 193.8 million in the Mineral Development Levy, once production from the project officially begins.

The discovery, estimated to hold gold worth Ksh 680 billion, has been detailed in an Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA).

The report shows that the mine, located at Isulu and Bushiangala in Ikolomani Constituency, holds 1.3 million ounces of gold with an impressive average grade of 11.43 grams per tonne (g/t). The mine’s operational life is estimated at eight years.

For a country whose mining sector contributes less than one per cent to GDP, the discovery could mark the beginning of a long-awaited economic shift. Shanta Gold’s feasibility study pegs the capital investment at Ksh 27 billion, while annual operating costs are expected to hit around Ksh 2.5 billion once extraction begins.

The company plans to use underground mining methods, a first of its kind in western Kenya, with supporting infrastructure such as a processing plant, tailings storage, water systems, power supply, and administrative buildings.

“The project entails the use of underground mining techniques for the potential development of a gold mine.

Key infrastructure includes a processing plant, tailings storage facility, waste rock dumps, water management systems, power supply, administrative buildings, and ancillary infrastructure,” the report stated.

The mine is expected to transform the face of Ikolomani, a region long associated with small-scale artisanal mining. But it will also require land acquisition and resettlement of some residents in Idakho North and Idakho Central wards, an issue the company insists will follow both Kenyan laws and international standards.

“Land acquisition and involuntary resettlement will be avoided where possible, minimised and mitigated, and will be carried out in accordance with the aforementioned guidelines,” the company stated in the report, referencing the International Finance Corporation’s (IFC) Performance Standard 5.

A Resettlement Policy Framework (RPF) has been created to guide a detailed Resettlement Action Plan (RAP), which will determine compensation for affected households and ensure no one is left worse off.

If all goes as planned, the gold project could become one of Kenya’s most lucrative mining ventures in decades, strengthening government revenue and stimulating economic activity in the western region.

The buzz

Yet the buzz surrounding the discovery has not come without caution. As news of the Ksh 680 billion gold find broke, social media erupted with excitement, speculation, and scepticism in equal measure. On X (formerly Twitter), users celebrated what some called “Kakamega’s golden moment,” while others questioned whether the proceeds would truly reach the local communities.

Memes, videos, and clips showing hopeful locals near the Isulu-Bushiangala area have gone viral, with many calling for transparency in how the project will be managed. Some users even joked about “moving to Kakamega” in search of fortune, echoing the tone of a modern-day gold rush.

Shanta Gold, which has been exploring Kenya’s western belt since 2016, describes the discovery as a “world-class, high-grade deposit” that could rival similar sites in Tanzania and West Africa. The firm says it remains committed to responsible mining and is working closely with regulators to ensure environmental and social compliance.