A report by Kenya’s National Environment Management Authority (NEMA) assesses ore grade at 11.43 grams of gold per tonne and the total resource at 1,270,380 ounces for an underground gold mine and processing plant at Isulu-Bushiangala in Kakamega South sub-county, according to The Star.
The work paper proposes an eight-year operation on about 337 acres, a 1,500-tonne-per-day processing facility, a 12-megawatt power station, and a tailings storage area.
At current spot prices, the deposit is valued at roughly $5.29 billion.
British miner Shanta Gold Limited, acting through Shanta Gold Kenya Limited, confirmed the find. Daily Nation reported that it marked the largest gold discovery in Kenya in decades and could help raise mining’s share of gross domestic product from under one percent toward the government’s target of up to ten percent.
Shanta Gold sought formal clearance to proceed and budgeted between Sh22 billion and Sh27 billion for construction. Company plans showed the use of Long Hole Open Stoping to limit surface disturbance, the creation of hundreds of jobs during both construction and production, and an influx of foreign direct investment into western Kenya.
Land acquisition remained the main obstacle. About 800 households would be affected by the need to secure the 337-acre site. Six resettlement areas covering 1,932 acres were identified, and affected families were offered either financial compensation or relocation within the region. The firm said it would follow Kenya’s Land Act and international resettlement standards.
“The project is economically viable, technically feasible, and socially desirable,” the EIA stated. Conservation groups, however, raised concerns about the mine’s proximity to Kakamega Forest and nearby river catchments, prompting NEMA to scrutinize tailings and water-quality safeguards.
Under Kenya’s Mining Act, three percent of gross sales would be paid as royalties, with 20 percent directed to Kakamega County and ten percent to local communities through development projects. The Mining (Community Development Agreement) Regulations also required the company to devote one percent of total gold output value to host-community programs. The EIA forecast millions of shillings in royalties and taxes that local leaders hoped to channel into infrastructure, health, and education.
“[The venture] may lead to the enhancement of local economic development through job and business opportunities and contributions to the Government of Kenya through taxes, royalties, and revenue,” said Shanta Gold, according to Business Insider Africa.
Economists viewed the discovery as a chance to diversify an economy reliant on agriculture and tourism. Kenya ranked sixth in Africa for mining investment attractiveness in the 2023 Fraser Institute Survey, and analysts told Daily Nation the new find could improve that standing. They also warned that Kenya would need strict oversight to avoid the resource-curse pattern seen in some mineral-rich nations.
If NEMA granted approval, Shanta Gold aimed to start underground blasting as early as next year, moving western Kenya from artisanal panning toward industrial-scale gold production.
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