Mining Cabinet Secretary Ali Hassan Joho has confirmed that a British mining company, Shanta Gold Limited, has discovered one of the country’s largest gold deposits yet — an estimated Ksh 683 billion worth of the precious metal in Kakamega County.
Speaking in an interview with Citizen TV on Thursday, November 13, Joho defended the decision to grant the mining firm exploration rights, adding that the actual value could be higher.
“It is true that gold worth Ksh 680 billion has been discovered in Kakamega, but this is only part of the findings and the actual value could be much higher,” the CS said.
“Research to explore underground resources and minerals is ongoing across the entire country. This may be the first discovery for which the findings have been announced, and progress has already been made.”
How British Firm Discovered Ksh 680Billion Gold
CS Joho further revealed that in 2022, the government invested in an aerial geophysics survey to identify the locations of minerals in various parts of the country.
“We found several areas with occurrences of minerals, including gold, copper, cobalt, coltan, and others,” he added.
“In Kakamega, the prospecting phase is complete, and we are now progressing to mining licensing, after which extraction will begin.”
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CS Joho on Why the Firm Will Handle the Extraction of Gold
The gold discovery by Shanta Gold Limited has raised public curiosity, with many asking why Kenyan miners are not leading the extraction.
However, CS Joho explained that the decision to license Shanta Gold was based on the technical and financial demands of mining the deposit.
He noted that while artisanal miners will still have designated areas to operate, the size and depth of this find require advanced equipment, specialized expertise, and significant investment.
“There has been speculation about why Kenyans will not have to mine for themselves. There is space for Kenyan artisanal miners to continue mining gold — their areas will be demarcated, and they will continue operating,” Joho said.
“The findings of this particular deposit extend beyond 1 km underground. Not everyone has the capacity to mine gold at that depth. Reaching 1–2 km below the surface requires specialized equipment, experience, technical know-how, technology, and massive investment.”
He added, “When you look at Shanta Gold’s investment plan submitted to our ministry, you will find that before they start mining gold at these depths, they plan to invest $510 million to reach 1–2 km underground. There is an agreement between the investor and the community.”
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Investment and Community Relocation Plans
The company estimates that it will need approximately 337 acres of land, primarily privately owned plots, which will result in the displacement of around 800 households.
To address this, Shanta Gold has earmarked six possible resettlement locations spanning about 1,932 acres, giving affected families the option of monetary compensation or relocation within the same region.
According to an Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA), Shanta Gold’s Kenyan subsidiary confirmed the discovery of 1.27 million ounces of gold at its Isulu-Bushiangala underground mining project, located in Kakamega South Sub-county.
EIA estimates a capital investment of between US$170 million and US$208 million (Ksh22–27 billion), with annual operating costs of about US$19 million (Ksh2.5 billion).
Shanta Gold is expected to pay royalties of approximately US$4.3–4.7 million (Ksh560–610 million) to the government every year, in addition to US$1.5 million (Ksh195 million) in the Mineral Development Levy.
Under the Mining (Community Development Agreement) Regulations, the company will also share 1% of the value of gold produced directly with host communities.
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