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A British mining company, Shanta Gold Limited, has announced the discovery of one of Kenya’s largest gold deposits — an estimated Sh683 billion worth of the precious metal in Kakamega County.
According to the firm, about 337 acres of land will be required for the mining project, most of which is privately owned, potentially displacing around 800 households.
To address this, the company has identified six possible resettlement sites covering 1,932 acres, with affected families to receive compensation or relocation within the same region.
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In an Environmental Impact Assessment (EIA) report submitted to NEMA, Shanta Gold’s Kenyan subsidiary confirmed the presence of 1.27 million ounces of gold at its Isulu-Bushiangala underground mining project in Kakamega South.
Prepared by Kurrent Technologies Limited and Digby Wells Environmental of South Africa, the report outlines plans for a large-scale underground mine in Musoli and Isulu, about 55 kilometers northwest of Kisumu.
“The Isulu and Bushiangala deposits contain about 1.27 million ounces, averaging 11.43 grams per tonne,” the report says, describing the project as a major economic opportunity for both the local community and the nation.
At current market prices, the find is valued at Sh683 billion, making it one of Kenya’s most valuable mineral discoveries.
Shanta Gold Kenya Limited, incorporated in 2010, is seeking NEMA approval to establish an underground mine and processing plant under its current exploration license. The mine will use Long Hole Open Stoping (LHOS) — a modern underground mining technique that minimizes surface impact.
The project will feature a 1,500-tonne-per-day processing plant, waste storage facilities, administrative blocks, and a 12-megawatt power station. The total investment is projected at Sh22–27 billion, with annual operating costs of around Sh2.5 billion.
The company expects to pay the government annual royalties of Sh560–610 million and a Sh195 million Mineral Development Levy, in addition to sharing 1% of total gold revenue with local host communities.
Under the Mining Act, 3% of gross gold sales will go to the national government, with 20% allocated to Kakamega County and 10% to local communities through development initiatives.
County officials have welcomed the discovery, saying it could unlock western Kenya’s economic potential if managed responsibly.
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However, the project has raised concerns over land acquisition, displacement, and environmental safety. The report cites fears of forced evictions and urges transparent compensation and community participation.
Environmental experts have flagged potential risks to nearby rivers — Yala and Isiukhu, both feeding into Lake Victoria — and called for strict water monitoring, stormwater management, and safe handling of chemicals like cyanide.
Given its proximity to Kakamega Forest, one of East Africa’s last tropical rainforests, the area’s rich biodiversity will require careful protection. The company has pledged to preserve cultural and ecological sites, including sacred fig trees and archaeological artefacts.
Shanta Gold says the mine will operate for at least eight years, with the potential for extension through further exploration. The project is expected to create hundreds of jobs and spur local infrastructure development.
“The project is technically sound, socially beneficial, and economically viable,” the EIA concludes, urging adherence to environmental safeguards to ensure lasting benefits for both the community and the country.
NEMA is currently reviewing the report before giving its final approval, which could pave the way for Kakamega to emerge as Kenya’s next gold mining hub.
