Kenya set to begin Sh680 billion gold mining in Ikolomani

Mining Principal Secretary Harry Kimtai convened a crucial stakeholder meeting Monday at Golf Hotel in Kakamega, where he provided assurances that the Shanta Gold exploration project would not displace small-scale and artisanal miners currently operating in the area.

Mapping Exercise to Begin This Week

Kimtai announced that a technical team, led by Secretary for Mines Thomas Mtwiwa, will commence mapping all small-scale and artisanal miners in Isulu and Bushiangala areas this week. The exercise aims to eliminate illegal foreign miners while issuing proper mining licenses to local residents.

The meeting brought together an array of stakeholders including religious leaders, mining cooperative representatives, national and county government officials, and journalists. The technical team will receive support from 11 community-nominated members to ensure local participation in the process.

Coexistence Between Large and Small-Scale Mining

“We want to do mapping so that we can sit down with Shanta and ask them to release land currently under their exploration license that they do not need, allowing small-scale and artisanal miners to coexist,” Kimtai explained during the forum.

The PS emphasized that miners would receive ministry facilitation to comply with legal and regulatory frameworks within 90 days of receiving their licenses. He delivered a stern warning to operators: “You will not operate without licenses this year.”

Targeting Illegal Foreign Operations

The mapping initiative also seeks to identify foreign miners engaged in illicit gold mining and trade activities in the region. Prospective license applicants will be required to submit essential documents, including title deeds and Kenya Revenue Authority PIN numbers, to ensure full compliance with regulations.

Kimtai revealed that the community and other stakeholders will have 42 days to review the Gazette Notice concerning the intended issuance of a mining license to Shanta Gold and provide input before the license receives final approval.

Financial Benefits for Community

The PS confirmed the investor will pay Sh20.4 billion in royalties, calculated at three percent over an eight-year mining period. The distribution allocates Sh14 billion to the national government, Sh4 billion to the county government, and Sh2 billion directly to the community.

Additionally, the community stands to benefit from Sh6.8 billion under Community Development Agreements, which will fund local infrastructure and social programs.

Addressing Misinformation Campaigns

Stakeholders at the meeting alleged that foreign miners have deliberately spread misinformation and incited residents against the investor to maintain their control over the lucrative mining business. They expressed strong support for the project, asserting that opposition comes not from genuine residents but from outsiders pursuing personal financial gain.

Kimtai declared that the Ministry of Mining, Blue Economy and Maritime Affairs has assumed full oversight of the proposed project. He issued a warning to cartels and brokers that their profiteering through misinformation campaigns has come to an end.

Land Valuation and Community Protection

The next phase involves valuing land earmarked for the project. Kimtai emphasized that no resident would be forcibly removed from their property without consent, and any institutions affected by mining operations will be rebuilt by the investor at their expense.

The ministry plans to conduct comprehensive civic education programs on the mining project to ensure community members fully understand the implications, benefits, and safeguards in place.

The Ikolomani gold discovery, confirmed at 1.27 million ounces by Shanta Gold’s Kenyan subsidiary through Environmental Impact Assessments submitted to the National Environment Management Authority, represents a transformative opportunity for Kenya’s mining sector.

The project’s success could position Western Kenya as a major gold production hub while providing a model for balancing large-scale commercial mining with artisanal operations that have sustained local communities for generations.

The development comes as Kenya seeks to expand its mining sector’s contribution to the national economy, with gold mining revenues having reached Sh3.02 billion in 2024, despite declining production levels in recent years.

Brian Wanjala
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Brian Wanjala

Investigative journalist covering politics, business, health, education and social affairs. Multiple award winner.

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