Kenya Discovers Largest Gold Deposit in Decades, Worth an Estimated $5.29 Billion
Kenya is on the verge of a major economic breakthrough following the discovery of its largest gold deposits in decades, valued at an estimated Sh683 billion (US$5.29 billion) in Kakamega County.
According to The Star Kenya, British miner Shanta Gold Limited confirmed 1.27 million ounces of gold at its Isulu-Bushiangala underground project, marking a significant milestone for the country’s mining sector.
The Environmental Impact Assessment (EIA) report, submitted to the National Environment Management Authority (NEMA), outlines plans for a large-scale underground mine covering about 337 acres in Kakamega South Sub-county.
The project, spearheaded by Shanta Gold Kenya Limited, a subsidiary of the London-listed firm, will use advanced Long Hole Open Stoping technology to extract ore while minimising surface disruption.
“The project is aimed at obtaining the required authorization to mine the Isulu-Bushiangala gold resources for economic purposes,” the company said in a statement.
“This may lead to the enhancement of local economic development through job and business opportunities and significant contributions to the government of Kenya through taxes, royalties and revenue contributions, which are likely to transfer into the local and regional economic growth,” the company added.
Key infrastructure will include a 1,500-tonne-per-day processing plant, a 12-megawatt power station, and a tailings storage facility. The mine’s construction is projected to cost between Sh22 billion and Sh27 billion, with an operational life of at least eight years.
Kenya currently plays a minor role in Africa’s gold mining industry, producing about 410 kilograms of gold in 2023, far below major producers such as Ghana, South Africa, and Sudan, which each produce millions of ounces annually.
Despite this low output, Kenya is emerging as an attractive new frontier for gold exploration and investment, ranking 6th in Africa for mining investment attractiveness in the 2023 Fraser Institute Survey.
With the discovery of the US$5.29 billion Isulu-Bushiangala deposit in Kakamega by Shanta Gold Limited, Kenya’s position could improve significantly, signalling a shift from small-scale artisanal mining toward large-scale commercial production.
The EIA report estimates that the project will generate millions in royalties, taxes, and community development funds. Under Kenya’s Mining Act, 3% of gross gold sales will be paid as royalties, of which 20% goes to Kakamega County and 10% to local communities through development projects. Shanta Gold will also contribute 1% of the total gold output value directly to host communities, in line with the Mining (Community Development Agreement) Regulations.
Economists say the discovery could inject new life into Kenya’s economy by diversifying revenue sources beyond agriculture and tourism. It is also expected to create hundreds of jobs during the construction and production phases, stimulate local businesses, and attract foreign direct investment.
However, The Star Kenya reports that concerns remain over land acquisition, displacement, and environmental risks, given the site’s proximity to the Kakamega Forest and key river catchments. The company has pledged to follow Kenya’s Land Act and international resettlement standards to mitigate these issues.
If approved by NEMA, the Shanta Gold project could position Kakamega as Kenya’s new frontier in industrial-scale gold mining, unlocking a vital new stream of economic growth for western Kenya and the nation at large.
