There’s something fitting about finding gold in a place called Ikolomani. The name literally means “gold mine” in Luhya, and now it seems the ancestors knew what they were talking about. Kakamega gold mining is about to enter a new era with British firm Shanta Gold’s massive discovery in the region.
The company has just submitted plans to NEMA for what could be Kenya’s most significant mining project in decades. They’ve found gold deposits worth Sh683 billion sitting beneath Kakamega’s Isulu-Bushiangala area, and they’re ready to invest Sh26.86 billion to dig it out.
The Scale of Kakamega Gold Mining Deposits
We’re talking about 1.27 million ounces of high-grade gold here. At today’s prices of around Sh530,985 per ounce, that’s serious money—about 4.1 percent of Kenya’s entire GDP. To put it another way, the gold sitting under Kakamega is worth more than twice the value of the entire county.
The history makes this discovery even more interesting. Kakamega’s gold belt has been known since the 1930s when colonial miners first set up commercial operations. For decades after independence, though, gold mining in the area remained small-scale and informal. Artisanal miners have been working these grounds for generations, often in dangerous conditions with little to show for it.
Now Shanta Gold wants to do this properly—with underground tunnels, modern processing plants, and all the infrastructure that comes with a Sh26.86 billion investment.
What Kakamega Gold Mining Means for Local Communities
Here’s where things get interesting for locals. The company expects to pay the government between Sh555 million and Sh607 million in royalties every year, plus another Sh193.7 million for the Mineral Development Levy.
Kakamega County gets 20 percent of those royalties—that’s about Sh11 million annually from the gold mining operations. Local communities affected by the mining will receive 10 percent, roughly Sh5.5 million each year. But there’s more: Shanta has agreed to share one percent of the actual gold value with surrounding communities. Over seven years of mining, that comes to Sh6.83 billion going directly to local people.
Of course, there’s a cost. About 800 families will need to relocate from the 337 acres Shanta needs for the mine. The company has identified potential resettlement sites covering nearly 2,000 acres and says families can choose between cash compensation or moving to new plots nearby.
Can Kenya Finally Get Mining Right?
Kenya’s mining sector has always been more promise than performance. We have the minerals, but we’ve never really figured out how to turn that into serious revenue. Gold production has actually been dropping—from 563.6 kilograms in 2022 down to just 358.8 kilograms last year. Earnings followed the same pattern, sliding from Sh3.38 billion in 2023 to Sh3.02 billion in 2024.
The government seems to recognize this. They recently cut the royalty rate for gold miners from five percent to three percent, trying to attract the kind of serious investment that Shanta represents.
If this project works—and that’s still an “if” pending environmental approval—it could show other mining companies that Kenya is finally ready for business. Shanta isn’t stopping at Kakamega either. They’re already exploring in Siaya’s Ramula area and have other prospects lined up across Western Kenya.
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The Future of Kakamega Gold Mining Operations
Once operational, the Kakamega gold mining facility will process 600 tonnes of ore daily. That’s industrial-scale mining, nothing like the informal operations we’re used to seeing. Shanta has budgeted Sh581.3 million just for eventual mine closure and rehabilitation, which suggests they’re thinking long-term.
The question is whether this becomes a model for responsible mining or just another extractive project that leaves communities worse off. The revenue sharing sounds good on paper, but 800 families losing their homes is no small thing. Environmental concerns around any mining operation are legitimate—Kakamega’s ecosystem is already under pressure.
Still, there’s genuine excitement in Western Kenya right now. For a region that’s watched its gold being extracted informally for decades with little benefit, the prospect of properly structured Kakamega gold mining operations that bring jobs, infrastructure, and real money to local communities is hard to dismiss.
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What Makes This Gold Mining Project Different
The Isulu-Bushiangala project won’t just be about digging up gold. It’ll be a test of whether Kenya can finally turn its mineral wealth into shared prosperity. Given our track record, that’s no guarantee. But with Sh683 billion in gold at stake and a company willing to invest Sh26.86 billion in proper infrastructure, it’s a test worth watching closely.
The Kakamega gold mining sector has been waiting for this moment since the 1930s. Whether Shanta Gold can deliver on the promise—and whether local communities truly benefit—will define Kenya’s mining future for generations to come.
