KAKAMEGA, Kenya — British mining firm Shanta Gold Limited has announced a major gold discovery worth an estimated Sh683 billion in Kakamega County, marking one of the largest confirmed deposits in Kenya’s history.
According to an Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA), the company’s Kenyan subsidiary, Shanta Gold Kenya Limited (SGKL), confirmed 1.27 million ounces of gold at its Isulu-Bushiangala underground mining project in Kakamega South Sub-county.
The report, prepared by Kurrent Technologies Limited in partnership with South Africa’s Digby Wells Environmental, describes the discovery as “a net benefit to the area and Kenya as a whole.”
At current market prices, the find is valued at about US$5.2 billion (Sh683 billion) — a figure that positions Kakamega as Kenya’s next mining frontier.
800 Households to Be Affected
The proposed mine will require about 337 acres of land, mostly privately owned, leading to the displacement of roughly 800 households.
To address this, Shanta Gold has identified six potential resettlement sites covering approximately 1,932 acres, offering affected families a choice between monetary compensation or relocation within the region.
The company has pledged to follow Kenya’s Land Act (2012) and International Finance Corporation (IFC) standards on voluntary land acquisition, backed by a detailed Resettlement Action Plan.
Massive Investment, Global Standards
The underground mine will be located near Musoli and Isulu, about 55 kilometres northwest of Kisumu.
It will employ the Long Hole Open Stoping (LHOS) mining method — a mechanised technique designed to reduce surface disturbance.
Infrastructure plans include a 1,500-tonne-per-day processing plant, 12-megawatt power plant, waste rock dumps, and tailings storage facilities.
The project’s capital investment is estimated between US$170 million and US$208 million (Sh22–27 billion), with annual operating costs of about US$19 million (Sh2.5 billion).
Shanta Gold expects to pay the government royalties worth Sh560–610 million annually, plus Sh195 million in mineral development levies.
Community and Government Benefits
Under Kenya’s Mining Act, the national government will receive 3% of gross gold sales as royalties — with 20% of that share going to Kakamega County and 10% to local communities through development projects.
The company will also allocate 1% of total gold revenue directly to host communities, as required by the Mining (Community Development Agreement) Regulations.
Kakamega leaders have hailed the project as a “game changer” for the western region, citing job creation, infrastructure, and local business growth once operations begin.
Environmental and Cultural Safeguards
However, the EIA also identifies environmental and social risks, including potential effects on the Yala and Isiukhu river catchments, which drain into Lake Victoria.
Experts recommend continuous water monitoring, dust control, and safe cyanide handling under international standards.
The site’s proximity to the Kakamega Forest, one of East Africa’s last tropical rainforests, adds ecological sensitivity.
The report notes the presence of sacred Mugumo (fig) trees and archaeological artefacts, which will be preserved or relocated in consultation with community elders.
Shanta Gold General Manager Jiten Divecha said the company aims to develop “a world-class underground operation that meets global safety and sustainability standards.”
The mine’s lifespan is projected at eight years, though exploration could extend operations further.
NEMA is currently reviewing the EIA report and will issue a final decision on project approval in the coming months.
If cleared, Shanta Gold could begin mine development, transforming Kakamega into Kenya’s newest hub for large-scale gold mining.
