How Kakamega residents will benefit from the Sh683bn gold discovery
Western
By
Mary Imenza
| Nov 19, 2025
The government has assured residents of the Isulu and Bushangala areas in Kakamega County that they will benefit significantly from the newly discovered gold deposits, valued at Sh683 billion.
Government Spokesperson Isaac Mwaura stated on Monday that the Kenya Kwanza administration will ensure that households likely to be affected by the planned large-scale mining activities are adequately compensated before any relocation occurs.
The mining project will cover 337 acres in the Isulu–Bushangala belt, where British firm Shanta Gold intends to begin extraction.
Mwaura emphasised that the Mining Act provides a clear framework on revenue sharing to safeguard community interests and ensure that mineral wealth benefits the whole country.
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Under the law, 70 percent of mining proceeds will go to the national government, 20 percent to the Kakamega County Government, while 10 percent will be allocated directly to the local community.
“We have a very clear mining law anchored in the Mining Act that ensures our minerals support national development, county priorities, and local communities,” he said. No one will be displaced without proper compensation and community engagement," he said.
He added that mining companies are obligated to sign a Community Development Agreement (CDA) with host communities and invest at least one percent of their annual gross mineral sales in agreed development projects.
"Large-scale mining companies. Like the one that will be based here, must negotiate and sign a Community Development Agreement (CDA) with host communities and must invest a minimum of one percent of annual gross mineral sales into a community-agreed development project,” he emphasized.
Priority areas include water, roads, schools, health facilities and other social amenities. Additionally, one percent of annual gross earnings under the royalty framework must be directed toward local community development.
To enhance transparency, Mwaura said the funds will be managed by a 14-member oversight committee comprising representatives from various stakeholders.
Speaking at the site of the ongoing construction of the Sh5.8 billion Kakamega Gold Refinery, now 88 percent complete, Mwaura noted that the gold discovery will boost Kenya’s gold reserves at the Central Bank, strengthen the country’s revenue base, and improve currency stability.
He said the Kenya Kwanza administration remains committed to equitable development across all regions, noting that Western Kenya is currently home to 77 major national government projects.
“President William Ruto was here just a week ago to launch various development initiatives. We are committed to ensuring that no region is left behind. In the Western region, we have 77 major projects at various stages of development, and President William Ruto was here a week ago when he launched various projects,” he said.
Residents in the mineral-rich zone have expressed concern over the potential relocation, but the government insists that all engagements will be transparent and community-driven as the project moves forward.