A groundbreaking discovery has been made in Kakamega, Kenya, with a British mining company, Shanta Gold Limited, uncovering an estimated Sh683 billion worth of gold deposits. This find is set to revolutionize the region's economy, but it also raises critical questions and concerns.
The company plans to acquire around 337 acres of land, primarily private plots, which will displace approximately 800 households. To address this, Shanta Gold has proposed six potential resettlement sites spanning 1,932 acres, offering affected families monetary compensation or relocation within the region.
An Environmental Impact Assessment (EIA) report, submitted to the National Environment Management Authority (NEMA), confirms the presence of 1.27 million ounces of gold at the Isulu-Bushiangala underground mining project in Kakamega South Sub-county. The report, titled "Shanta Gold West Kenya Feasibility Study: Isulu-Bushiangala Underground Mining Project", was prepared by Kurrent Technologies Limited and Digby Wells Environmental of South Africa.
The project aims to establish a large-scale underground mine in Musoli and Isulu, approximately 55 kilometers northwest of Kisumu. The report states, "The Isulu and Bushiangala resources contain 1,270,380 ounces grading an average of 11.43 grams per tonne of gold." It further describes the project as a "net benefit to the area and Kenya as a whole."
With the deposit valued at approximately Sh683 billion, it is one of the country's most valuable mineral discoveries. Shanta Gold Kenya Limited (SGKL), a wholly-owned subsidiary of the London-listed company, is seeking NEMA's approval to proceed with the underground mine and processing plant under its existing prospecting license.
The mine will employ the Long Hole Open Stoping (LHOS) method, a mechanized underground technique that allows selective ore extraction with minimal surface disruption. According to the company, the mined-out voids will be filled with cemented aggregate to reduce the risk of land subsidence and degradation.
Key infrastructure will include a 1,500-tonne-per-day processing plant, a tailings storage facility, waste rock dumps, administrative buildings, and a 12-megawatt power plant. The EIA notes that while the project will have significant impacts, these will be minimized through mitigation measures.
SGKL General Manager Jiten Divecha, who signed off on the report, emphasized the company's commitment to developing "a world-class underground operation that meets global safety and sustainability standards." The mine's projected lifespan is eight years, but further exploration could extend its operations.
The EIA estimates a capital investment of US$170-208 million (Sh22-27 billion) and annual operating costs of approximately US$19 million (Sh2.5 billion). The company expects to pay royalties of about US$4.3-4.7 million (Sh560-610 million) to the government annually, plus US$1.5 million (Sh195 million) in Mineral Development Levy.
Under the Mining (Community Development Agreement) Regulations, Shanta Gold will also share 1% of the value of gold produced directly with host communities. Kakamega County, known for its agriculture and artisanal mining, stands to benefit from new jobs and infrastructure once operations commence.
The EIA projects hundreds of direct and indirect employment opportunities, particularly during construction and production. Under Kenya's Mining Act, 3% of gross gold sales will go to the national government as royalties, with 20% remitted to Kakamega County and 10% to local communities through development projects.
County officials have expressed optimism that the mine will "unlock the economic potential of western Kenya," provided it is managed responsibly. However, the project has sparked concerns over land acquisition, potential displacement, and environmental risks.
The report notes that land will be acquired from both private and public owners in Musoli and Isulu. Residents fear forced evictions, unfair compensation, and the loss of ancestral land. The EIA records apprehension and fear among stakeholders, emphasizing the need for transparent communication and inclusive public participation.
Shanta Gold assures that land acquisition will follow a voluntary, negotiated process under Kenya's Land Act (2012) and the International Finance Corporation's Performance Standards (PS5). A Resettlement Action Plan will guide compensation and livelihood restoration.
Environmental issues were a dominant theme during consultations, with questions raised about water use, dust control, and chemical safety. The EIA identifies potential risks to the Yala and Isiukhu river catchments, which drain into Lake Victoria. Baseline tests revealed high nitrate and manganese levels from agricultural runoff.
Consultants recommend continuous monitoring of streams and rivers both upstream and downstream, along with stormwater management and controlled blasting to prevent contamination and vibration damage. It was decided that cyanide, used in processing, will be handled under international safety standards.
The study highlights the area's ecological and cultural sensitivity due to its proximity to the Kakamega Forest, one of East Africa's last tropical rainforests. Archaeological surveys identified ceramic artifacts and sacred Mugumo (fig) trees, which will be preserved or relocated with respect, in consultation with elders.
The ecosystem is classified as "critical or endangered," requiring strict biodiversity protection. Shanta Gold has been urged to limit vegetation clearance, rehabilitate mined land progressively, and involve communities in conservation projects.
A Human Rights Impact Assessment, based on UN guidelines, identified risks involving artisanal miners, vulnerable groups, and worker safety. The report proposes community education, gender desks in health facilities, and training for youth and women to support fair participation in mining-related jobs.
Experts emphasize that while the Kakamega gold discovery offers a significant economic boost, its sustainability relies on environmental vigilance and transparent governance.
"Provided that all environmental safeguards are adhered to, the project should continue to benefit both the local communities and the country," the EIA concludes.
NEMA is expected to make a final decision on the project's approval after reviewing the report. If given the green light, Shanta Gold will move into mine development, potentially positioning Kakamega as Kenya's new frontier in large-scale gold mining.
