Kakamega hits the mother-lode: gold worth KSh 683 billion found in western Kenya

Good news is emerging from western Kenya as the county of Kakamega County has been revealed to host one of the country’s largest gold deposits to date. A British mining firm, Shanta Gold Kenya Limited — a local subsidiary of the UK-listed Shanta Gold Limited — has announced that an estimated 1.27 million ounces of gold have been identified in the Isulu-Bushiangala area (Kakamega South Sub-county). At current gold prices, this reserves estimate is valued at about KSh 683 billion (approximately US$5.28 billion).

What the find includes

The resource estimate covers the Isulu and Bushiangala deposits in Kakamega South, with an average grade of 11.43 grams per tonne of gold.

The project is part of Shanta Gold’s “West Kenya Gold Project” which spans multiple licences across western Kenya.

A feasibility study has been submitted to the National Environment Management Authority (NEMA) for review, supporting an underground mining operation and processing plant.


Potential economic boost

Leaders and officials in Kakamega and beyond have hailed the discovery as a potential game-changer. Some of the expected benefits include:

Employment creation: hundreds of jobs direct in mining, indirect in services and supply chains.

Infrastructure growth: improved access roads, power supply, processing infrastructure and community facilities.

Government revenue: Shanta Gold projects royalties in the order of hundreds of millions of Kenyan shillings annually, plus a Mineral Development Levy and local community contributions.


What’s ahead: challenges and safeguards

While the discovery is remarkable, several issues must be carefully managed:

Land and resettlement: The proposed mining footprint covers roughly 337 acres and may affect about 800 households, according to the company’s Environmental Impact Assessment (EIA) report. Resettlement plans and fair compensation are flagged as necessary.

Environmental risks: The mine is near sensitive ecosystems, including water-catchment areas feeding into the Yala and Isiukhu rivers and the region of the Kakamega Forest. Monitoring and mitigation of water, dust, and chemical risks are emphasised.

Regulatory oversight & public participation: NEMA recently cancelled a scheduled public hearing for the mining project, citing “unavoidable circumstances”, raising concerns about community participation.


What this means for the region

For Kakamega County, which has traditionally relied on agriculture and small-scale artisanal mining, this discovery could mark a shift toward large-scale mineral investment. The county government has previously been working with the national government to establish a gold refinery in Kakamega (valued at about KSh 5.8 billion) which would help retain value within the region.

Governor Fernandes Barasa and other western region leaders describe the find as “transformative,” but have called for transparent processes, strong safeguards and inclusive community dialogue.

A word of caution

While excitement is understandable, observers caution against viewing the discovery as an immediate windfall. Mining development takes time — feasibility studies, licensing, community agreements and actual production can span many years. The EIA suggests a mine life of about eight years under current parameters, though exploration may extend this.

What to watch

Approval of the EIA by NEMA and issuance of mining licence.

Resettlement and compensation arrangements for affected households.

Final investment decision by Shanta Gold Kenya and commencement of mine construction.

Transparent benefit-sharing frameworks to ensure Kakamega County and local communities receive fair returns.

Monitoring of environmental and social impact including protection of ecosystems and water resources.

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