Kakamega assembly clears Sh680 billion gold mining project

Secretary Mining in the State Department for Mining Thomas Mutwiwi addressing a sitting by the county assembly of Kakamega during the hearing of petitions on the proposed mining of Sh680 billion gold in Ikolomani at the Malinya Stadium/HILTON OTENYO

The Kakamega Assembly has cleared the way for the proposed Sh680 billion gold mining project in Ikolomani constituency, paving the path for large-scale extraction by Shanta Gold Kenya.

The approval follows public hearings conducted by the assembly's Committee on Environment, Natural Resources, Energy, Water and Climate Change after two civil society organisations petitioned for the suspension of the project.

The committee heard the petitions at Malinya Stadium on April 23 before compiling its findings.

According to the committee's report, Shanta Gold's engagement with local communities met the threshold for meaningful public participation and the project is progressing through the regulatory processes required under the Mining Act, 2016.

“Existing engagement structures, including consultative forums, are sufficient and have provided an adequate platform for local stakeholders' input on the project. The company has demonstrated willingness to engage community structures on matters affecting the proposed project,” the report states.

The committee noted that Shanta Gold is currently developing a Resettlement Action Plan for affected residents, which will undergo public scrutiny and independent validation at the appropriate stage to minimise governance and human rights risks.

It further found that adequate measures had been outlined in the Environmental and Social Impact Assessment to address potential environmental risks, particularly concerning River Yala and River Isiukhu, both of which lie within the project area.

“The report notes that sufficient mitigation measures on environmental risks regarding River Yala and River Isiukhu, which are situated within the project area, have been outlined in the Environmental and Social Impact Assessment,” the report shows.

The committee also highlighted the project's potential economic benefits, including the creation of an estimated 1,000 direct jobs for residents.

It observed that formalising mining operations under a structured large-scale framework would provide more reliable and regulated economic opportunities than the current artisanal mining activities.

The report adds that the project could create pathways for artisanal miners to transition into formal employment and participate in mining-related supply chains.

However, the committee expressed concern over the absence of formal Artisanal and Small-Scale Mining permits despite decades of community mining activity in the area, warning that the situation could disadvantage local miners and create uncertainty within the sector.

To strengthen public confidence, the committee recommended that Shanta Gold Kenya, the National Environment Management Authority, the State Department for Mining and the County Government of Kakamega enhance public engagement processes to ensure they remain inclusive, transparent and accessible.

It further recommended that future consultations be conducted in local languages and include simplified technical information, particularly on the ESIA report.

“All stakeholders should be involved in decision-making, including vulnerable and marginalised groups such as women, youth and persons living with disabilities,” the report states.

The committee also called for the public disclosure of a comprehensive Resettlement Action Plan detailing compensation, livelihood restoration measures and grievance redress mechanisms before any land acquisition or resettlement begins.

The report says the plan should comply with both national and international standards as provided for under the Mining Act, 2016, and its regulations.

INSTANT ANALYSIS

The approval of the Sh680 billion Ikolomani gold project marks a significant milestone for Kenya’s mining sector and could transform Kakamega into a major economic hub. The promise of jobs, increased investment and formalisation of mining activities offers substantial opportunities for local communities. However, the project's success will depend on how effectively concerns around land rights, resettlement, environmental protection and benefit-sharing are addressed. The county assembly's emphasis on public participation and transparency reflects the growing demand for responsible resource governance. Going forward, implementation of fair compensation and community safeguards will be critical in securing public trust and long-term sustainability.