Untapped Wealth in Western Kenya

A British mining firm has identified gold deposits worth an estimated Sh683 billion ($5.28 billion) in Kakamega County, a discovery that could fundamentally reshape Kenya's economic landscape and position the nation as a significant player in the global minerals market. Shanta Gold Kenya Limited, a subsidiary of the UK-based Shanta Gold, announced the valuation following extensive exploration in the Isulu-Bushiangala area. The company is now seeking regulatory approval to commence large-scale underground mining operations.

The project represents one of the most valuable mineral finds in Kenya's history. According to documents submitted to the National Environment Management Authority (NEMA) on Wednesday, November 12, 2025, the firm plans to invest Sh26.86 billion ($208 million) to construct and develop the underground mine and a processing facility. The proposed mine is projected to operate for at least eight years and process 600 tonnes of ore daily, with the potential for extension through further exploration.

Economic Implications for Kenya

The discovery comes at a pivotal moment for the Kenyan economy. The mining sector currently contributes less than one per cent to the country's Gross Domestic Product (GDP), but the government has long targeted its expansion as a key pillar of the Vision 2030 economic blueprint. Proponents of the Shanta Gold project argue it could be a catalyst for achieving this goal, generating substantial revenue for both the national and Kakamega county governments through taxes and royalties. The company estimates it will pay the government 1% of the gold's value directly, potentially amounting to Sh6.83 billion over the mine's initial lifespan.

This influx of revenue and investment could spur significant local development, creating jobs and business opportunities in a region historically reliant on agriculture. However, Kenya's gold earnings have seen a decline in recent years, falling from a peak of Sh3.38 billion in 2022 to Sh3.02 billion in 2024, according to the Economic Survey 2024. The formal, large-scale operation proposed by Shanta Gold stands in stark contrast to the existing artisanal and small-scale mining that has characterized the Kakamega gold belt since the 1930s. This informal sector has been plagued by hazardous working conditions, use of toxic materials like mercury, and limited returns for both miners and the state.

Community and Environmental Concerns

While the economic promise is significant, the project also brings complex social and environmental challenges. The development is expected to require over 300 acres of land, potentially leading to the displacement of up to 800 households in the densely populated area. In its Environmental Impact Assessment (EIA) report, Shanta Gold has outlined plans for resettlement and compensation, identifying potential relocation sites for affected families. The successful and equitable management of this process will be critical to the project's social license to operate.

Furthermore, there are widespread concerns about avoiding the "resource curse," a phenomenon where countries rich in natural resources experience slower economic growth, increased corruption, and social instability. Ensuring transparency in revenue management and guaranteeing that the benefits flow to the local community and the wider Kenyan public will be a primary challenge for both the government and the investor. The EIA submitted to NEMA includes commitments to environmental protection, such as water recycling and a Sh581 million ($4.5 million) fund for post-closure rehabilitation, which will be subject to regulatory scrutiny.

As NEMA reviews the application, the nation watches closely. The Sh683 billion opportunity in Kakamega is not merely about the extraction of a precious metal; it is a profound test of Kenya's ability to manage its natural wealth responsibly for sustainable and inclusive national development. The outcome will set a precedent for the future of the country's burgeoning extractive industry.