Kakamega: The Government has moved to reassure residents of Isulu and Bushangala areas in Kakamega County, where an investor has discovered a gold haul worth 683 billion shillings, that they stand to gain once mining commences. Government Spokesperson, Dr. Isaac Mwaura, has also guaranteed that residents affected in the 337-acre land identified for mining will not be displaced without proper compensation.
According to Kenya News Agency, Dr. Mwaura outlined that there is a framework under the Mining Act for revenue proceeds that protects host community interests and ensures that natural resources benefit all Kenyans. Under the Act, 70 percent of the mining proceeds will go to the National government, 20 percent to the host Kakamega county government, and 10 percent to the local community.
The Spokesperson further assured that the mining company must ensure that one percent of the annual gross earnings, under the royalty framework, is allocated towards local community development, prioritizing investments in water, roads, schools, and health facilities.
Dr. Mwaura emphasized the requirement for large-scale mining companies to negotiate and sign a Community Development Agreement with host communities, investing a minimum of one percent of annual gross mineral sales into community-agreed development projects.
Mwaura made these remarks in Kakamega at the site of the ongoing construction of a 5.8 billion gold refinery, as he began a weeklong tour of development projects in the western region’s four counties: Kakamega, Vihiga, Bungoma, and Busia. This initiative seeks to showcase several development projects undertaken by the National government in the region.
The Government Spokesman stated that the utilization of funds will be overseen by a 14-member committee to ensure transparency in creating jobs, reducing poverty, and improving livelihoods. He highlighted that the discovery of gold in the area will help improve gold reserves at the Central Bank of Kenya, increase the country’s revenue base and currency strength, and improve local infrastructure.
Dr. Mwaura further mentioned the Kenya Kwanza Administration’s commitment to equitable development distribution across the country’s sectors, including infrastructure, economic stimulus markets, roads, education, and agriculture.
He enumerated ongoing projects, including affordable housing projects in all four counties, roads, water supply, economic stimulus projects, markets, and the ongoing construction of the Kakamega Gold refinery, which is 88 percent complete. Shanta Gold, a British mining firm, seeks to have 337 acres of land in the Isulu-Bushangala area for large-scale gold mining, but residents have expressed concerns about their welfare in the event of relocation.
