Kenya, for years, had whispers of buried gold, a story passed across generations of artisanal miners panning rivers in hope. Now, those whispers have turned into data-backed confirmation. In what could be a historic turning point, Shanta Gold Kenya Limited, a British mining company, recently announced the discovery of extensive underground gold deposits worth over $5.28 billion (Sh683 billion) in Kakamega County’s Lirhanda Corridor.
This isn’t just another mineral find; it’s potentially the moment that transforms Kenya from a marginal player into a regional heavyweight in gold production, challenging Tanzania and Sudan’s long-held dominance in East Africa’s gold scene. But beyond the glimmer lies a deeper story of economics, regulation, environmental responsibility, and national aspiration.
READ ALSO: Ghana’s First Audit of Mining Firms in 10 Years: What It Means
The discovery, located within the 1,200-kilometre Lirhanda Corridor stretching across Kakamega and Vihiga counties, follows years of detailed exploration, seismic testing, and deep drilling.
According to Shanta Gold’s Environmental Impact Assessment (EIA) report submitted to the National Environment Management Authority (NEMA), the Isulu-Bushiangala underground project in Western Kenya holds an estimated 1.27 million ounces of gold, with an impressive average grade of 11.43 grams per tonne, giving the deposit a total market value of about Sh683 billion based on current global gold prices.
This concentration ranks among the highest-grade deposits in East Africa, making it commercially viable for large-scale underground extraction, an industrial first for Kenya.
Shanta Gold, which acquired its Kenyan assets from Barrick Gold in 2020, plans to invest $208 million (Sh26.8 billion) to develop a mine, processing plant, and associated infrastructure. The mine will operate using Long Hole Open Stoping (LHOS), a mechanised underground method designed to minimise surface disruption, with mined-out areas refilled using cemented aggregate to prevent land subsidence.
The discovery in Kakamega is set to significantly transform Kenya’s economy at national, regional, and community levels by unlocking new revenue streams and stimulating broad-based development. The government stands to earn between Sh560 million and Sh610 million annually in royalties, alongside a Sh195 million Mineral Development Levy, while the 1% Community Development Agreement ensures host communities directly benefit from the mining proceeds. This financial inflow could strengthen Kenya’s fiscal position and support socio-economic projects in the region.
Beyond revenue, the project promises hundreds of new jobs during both construction and operation, spurring growth in local industries such as logistics, construction, and hospitality. The planned 12-megawatt power plant and 1,500-tonne-per-day processing facility will improve infrastructure, potentially expanding access to electricity and catalysing rural enterprise. As Kenya moves toward large-scale gold production, this development is expected to attract greater foreign direct investment (FDI), positioning the country as an emerging destination for global mining capital seeking stable and resource-rich frontiers.
In the broader East African context, Kenya’s gold sector is still emerging compared to regional giants Tanzania and Sudan, which produce about 45 tonnes and 86 tonnes of gold annually, respectively. However, with the Shanta Gold project, Kenya is projected to raise its output from under 1 tonne to between 5 and 10 tonnes, supported by high-grade deposits and a stable investment environment. While Tanzania and Sudan maintain dominance through scale and regulatory experience, Kenya’s strategic location near Mombasa Port gives it a logistical advantage that could make it a strong new contender in the regional gold industry.
Data Snapshot: The State of Kenya’s Gold Industry (2024–2025)
Kenya’s gold industry remains largely artisanal, with 250,000 people directly employed and over one million livelihoods supported, yet official production declined to 358.8 kilograms in 2024 from 410 kg in 2023. Despite minimal official reserves of about 0.02 tonnes, the sector’s true potential is undercut by widespread informal trading and discrepancies in export data. To address this, the government is pursuing formalisation through the Mining Act and Community Development Regulations, alongside strategic initiatives such as establishing a national gold refinery in Kakamega to curb smuggling and the Central Bank’s 2025 plan to buy domestic gold for reserve diversification moves that signal a growing commitment to capturing more value locally.
Despite the promising prospects, the Kakamega gold project faces several significant challenges. Community displacement could affect around 800 households, with resettlement plans potentially delayed by local opposition and land disputes. Environmental concerns are also critical, highlighted by recent NEMA closures of 200 illegal mining sites, emphasising the need to balance development with ecological protection. Additionally, regulatory bottlenecks, ongoing illicit trade, and gold price volatility pose risks to timely operations, profitability, and the formalisation of Kenya’s emerging gold sector.
Gold mining in Kenya isn’t new. During the colonial period, British explorers mined small quantities in Western Kenya, though large-scale commercial extraction never took root due to limited technology and infrastructure.
The post-independence era saw artisanal mining flourish, particularly in Migori, Kakamega, and Vihiga, but without formal regulation or technological investment. By the early 2000s, informal miners known locally as “watu wa mashimo” dominated production, often selling through illicit channels.
The 2016 Mining Act marked Kenya’s first real step toward modernising and formalising the sector. Yet until now, most commercial investors had remained cautious, awaiting data-proven reserves. Shanta Gold’s discovery validates long-held suspicions that Western Kenya harbours world-class gold potential, possibly shifting the country’s mining narrative from small-scale informality to industrial-scale productivity.
This discovery comes at a strategically opportune moment, as global investors look for new mining hubs amid uncertainty in traditional regions, highlighting Africa’s rising prominence in the sector. For Kenya, the find provides geoeconomic leverage within the AfCFTA, enables strategic diversification away from reliance on agriculture and tourism, and offers potential foreign exchange stability by supporting gold-backed reserves, strengthening the national economy.
Moreover, this development signals a rebalancing of Africa’s resource geography, away from southern and western Africa toward the underexplored east.
The Kakamega gold discovery opens multiple future opportunities for Kenya’s mining sector, including the formalisation of artisanal miners into regulated value chains and the development of downstream processing through the Kakamega Gold Refinery, allowing the country to retain more mineral value domestically. The project also facilitates technology transfer and skills development for local engineers, miners, and regulators, while scaled production could enhance structured regional trade with neighbouring countries under AfCFTA. Additionally, the adoption of green and sustainable mining practices positions Kenya as a potential leader in environmentally responsible gold production.
The Kakamega discovery is more than a windfall; it’s a test of Kenya’s readiness to transition from potential to performance. If managed transparently, sustainably, and inclusively, the Shanta Gold project could spark a “Kenyan gold rush”, one driven not by greed, but by governance, innovation, and opportunity.
For a nation long celebrated for its agriculture, innovation, and tourism, mining may soon join the ranks of Kenya’s defining industries, ushering in an era where the country no longer just watches gold flow across its borders but takes its rightful place among Africa’s mineral powerhouses.
