Kenya’s $5.2bn Gold Project Stirs Community Unrest

7 April 2026

One of Kenya’s biggest mining investments promises billions for local communities, but residents remain wary…reports Newsdesk

The national government has moved to highlight the economic potential of a proposed gold mining project in Ikolomani, Kakamega County, even as mounting community opposition threatens to delay its implementation.

State Department for Mining Principal Secretary Harry Kimtai told an induction workshop for Kakamega County Assembly members in Kisumu that the Isulu-Bushiangala gold project, licensed to Shanta Gold Mining Company, holds an estimated 1.2 million ounces of gold valued at approximately Sh680 billion, making it one of Kenya’s most significant mining investments.

Kimtai said the project had the potential to transform both the local and national economy if implemented within the law, adding that local communities and the county government stood to benefit substantially under the Mining Act 2016.

Under the legislation, ten per cent of royalties would go directly to the community whilst 20 per cent would be allocated to the county government. Based on projected revenues, the local community is expected to receive approximately Sh2 billion over the project’s lifespan, with Kakamega County earning a further Sh4.1 billion. An additional one per cent of gross sales, estimated at Sh6.8 billion, would also be paid directly to the community.

Kimtai stressed that the funds would be disbursed directly by the State Department for Mining, bypassing the National Treasury to avoid delays.

“The community bearing the greatest impact must also benefit directly. These funds will not pass through intermediaries. They will go straight to the people,” he said.

He maintained that no mining would commence without landowner consent, full compensation, a mandatory 42-day public participation period, and approved Environmental and Social Impact Assessments. He cautioned that mistrust could derail the project entirely.

“We do not want to operate in an environment of suspicion. If there is no consensus, it becomes difficult to proceed,” Kimtai said.

Kakamega County Assembly Speaker James Wanzala Namatsi confirmed that the House had already received two petitions from residents raising concerns over environmental risks, community rights and the broader socio-economic impact of the project.

Namatsi said the assembly was considering holding sittings within affected communities to strengthen public participation, adding that the petition process would be handled with professionalism and fidelity to the law.

“Mining, especially gold mining, can easily create conflict. We must approach this process with wisdom, fairness and integrity to ensure justice is not only done but seen to be done,” he said.

The induction workshop was organised by the County Assemblies Liaison Committee Secretariat in collaboration with the State Department for Mining to equip assembly members with legal and procedural knowledge on handling the petitions.

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