Fears of displacement rise as locals demand fair compensation and transparency over massive mining project
A wave of anxiety has swept across parts of Kakamega County following revelations that a British mining firm, Shanta Gold Limited, has discovered gold deposits valued at a staggering Sh683 billion — one of Kenya’s largest mineral finds to date.
According to an Environmental Impact Assessment (EIA) submitted to the National Environment Management Authority (NEMA), the company’s Kenyan subsidiary has confirmed the presence of 1.27 million ounces of gold at its Isulu-Bushiangala underground mining project in Kakamega South.
The discovery — while heralded as a potential economic game changer — has also triggered tension among local communities amid fears of displacement, environmental degradation, and unfair compensation.
Shanta Gold’s feasibility study estimates the mine will require 337 acres of land, mostly privately owned, potentially displacing up to 800 households. The company has identified six possible resettlement sites covering about 1,932 acres, offering affected families a choice between cash compensation or relocation within the same area.
At current global market rates, the estimated 1.27 million ounces, grading an average of 11.43 grams per tonne, is valued at over Sh683 billion, making it one of Kenya’s most significant mineral discoveries in decades.
The proposed underground mine, to be located in Musoli and Isulu locations, about 55 kilometres northwest of Kisumu, will employ Long Hole Open Stoping (LHOS) technology — a mechanised mining method designed to minimise surface disturbance.
The company projects a capital investment of between US$170 million and US$208 million (Sh22–27 billion) and annual operating costs of around US$19 million (Sh2.5 billion).
In return, the Kenyan government stands to earn royalties worth Sh560–610 million annually, alongside a Mineral Development Levy of about Sh195 million per year.
Under the Mining (Community Development Agreement) Regulations, Shanta Gold will also channel 1% of total gold output directly to local host communities.
Despite assurances of a voluntary and transparent land acquisition process, local residents have expressed unease about possible forced evictions and loss of ancestral land.
“There is apprehension and fear of forceful evictions from ancestral lands,” the EIA report notes, calling for “transparent communication and inclusive public participation.”
Residents and civil society groups have urged both the county and national governments to ensure fair compensation, independent oversight, and environmental safeguards before the mining begins.
The project area sits near the Yala and Isiukhu river catchments, which drain into Lake Victoria, and close to the Kakamega Forest, one of East Africa’s last tropical rainforests.
Environmental experts have warned that the region’s fragile ecosystem — home to endangered species and sacred cultural sites — could face severe disruption if mining operations are not tightly controlled.
“The ecosystem here is classified as critical or endangered,” the EIA cautions. “Strict biodiversity protection and progressive rehabilitation of mined areas are mandatory.”
Cyanide, to be used in gold processing, will be handled under international safety protocols, while continuous water quality monitoring and controlled blasting will help curb contamination and vibration impacts.
For a county long dependent on agriculture and small-scale mining, the discovery brings hope for hundreds of direct and indirect jobs, as well as improved infrastructure once operations begin.
“This project has the potential to unlock western Kenya’s economic potential,” a county official said, noting that 30% of royalties from gold sales will be shared between the county government (20%) and local communities (10%) as per the Mining Act.
Shanta Gold’s General Manager Jiten Divecha said the firm aims to develop “a world-class underground operation that meets global safety and sustainability standards.”
The mine’s initial lifespan is projected at eight years, but further exploration could extend operations significantly.
NEMA is now reviewing the EIA report before granting final approval. If cleared, Shanta Gold could begin development within months — a move that would put Kakamega on the map as Kenya’s new frontier in large-scale gold mining.
But until then, the discovery remains both a beacon of hope and a source of unease for the people whose lives — and lands — sit atop one of Africa’s newest gold treasures.
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