British company discovers Sh683 billion Gold Deposit in Kakamega

What a Sh683 billion Gold Deposit in Kakamega Means for Kenya’s Mining Future

In the quiet hills of Kakamega County, western Kenya, about 800 households are bracing for transformation as 337 acres are earmarked for a new gold mine led by Shanta Gold Limited. The British company reports estimated deposits worth KSh 683 billion, signalling a potential gold‑rush frontier for Kenya. Globally, gold is rising in value amid economic uncertainty; regionally, Africa’s mining sectors are seeking new growth; locally, the stakes for livelihoods, land, and authority are high. Learn more about Kenya’s mining sector at the World Bank Data Portal.

Gold has long been a global hedge against economic volatility, drawing investors during periods of inflation and market uncertainty. In Africa, mining is increasingly viewed as a driver of diversification away from agriculture and services. For Kenya, the mining and quarrying sector still contributes less than 1 % to GDP. The Isulu-Bushiangala discovery in Kakamega represents a local event with regional resonance and global implications, potentially reshaping how Kenya participates in the global gold market. Additional economic context can be found via the IMF Data Portal.

In Musoli and Isulu Locations, South Sub‑County, residents are learning that their land might be taken for the underground mine. Everyday farmers and traders face difficult choices regarding compensation, relocation, or staying with changed surroundings. For many, ancestral land and community ties complicate negotiations. One local leader described the situation as filled with “apprehension and fear of forceful evictions from ancestral lands.”

Shanta Gold Kenya Ltd reports estimated gold resources of 1,270,380 ounces at Isulu-Bushiangala, at an average grade of 11.43 grams per ton. At current gold prices of approximately US$4,111 per ounce, the deposit is valued at around KSh 683 billion. The project is expected to require an investment of US$170–208 million and annual operating costs of about US$19 million. Under Kenya’s Mining Regulations, precious metals like gold are subject to a 3 % royalty on gross extracted value. Historically, Kenya’s gold export earnings have been low, falling to Sh3.02 billion in 2024.

Experts say that if environmental safeguards are properly enforced, the project could benefit both local communities and the country at large. Shanta Gold Kenya’s General Manager, Jiten Divecha, emphasized the goal of a “world-class underground operation that meets global safety and sustainability standards.” Mining policy analysts also note that Kenya has lowered royalty rates to attract larger-scale gold investment, potentially making the country more competitive in the regional mining sector.

Despite the economic promise, concerns persist. Land acquisition affecting 337 acres and roughly 800 households presents a major social risk. Environmental issues are also significant; the project lies near river catchments leading into Lake Victoria and close to the Kakamega Forest, a rare tropical rainforest in East Africa. Critics warn that small-scale and artisanal miners could be marginalized and that community consultation and compensation may be inadequate. Studies on Kenya’s artisanal mining sector show that while thousands are employed, regulatory formalization remains weak. More insights on African women in mining are available here.

For the discovery to translate into sustainable benefit, transparent land resettlement and livelihood restoration plans are essential, alongside rigorous environmental monitoring to protect water quality, manage tailings, and preserve biodiversity. Benefit-sharing mechanisms, such as allocating 1 % of the gold value to host communities, must be enforced. If properly implemented, this project could elevate Kenya’s mining sector profile and provide broad regional economic benefits, including infrastructure development, local skills training, and increased employment.

Shanta Gold’s reported KSh 683 billion deposit in Kakamega is not just a mining figure — it is a potential pivot for Kenya’s gold sector, a catalyst for community change, and a test for responsible development. While mining currently contributes under 1 % of Kenya’s GDP, a project of this scale could transform the sector’s national and regional role if social, environmental, and governance frameworks are strengthened. The next chapter in Kenya’s gold story will depend less on the mineral beneath the ground and more on how the people above it navigate opportunity, risk, and sustainability.

“There is apprehension and fear of forceful evictions from ancestral lands.”

This article was prepared by the Ramsey Focus Analysis Desk, based on verified reports, independent analysis, and insights to ensure balanced coverage.