Kisumu: The national government has moved to underscore the massive economic potential of the proposed gold mining project in Ikolomani, Kakamega County, even as growing community concerns threaten to stall its implementation. State Department for Mining Principal Secretary (PS) Harry Kimtai said the Isulu-Bushiangala gold project licensed to Shanta Gold Mining Company holds an estimated 1.2 million ounces of gold valued at approximately Sh680 billion, placing it among Kenya’s most significant extractive investments.
According to Kenya News Agency, the PS emphasised during an induction workshop in Kisumu for Members of the Kakamega County Assembly (MCAs) that the project is of national scale, with the potential to transform both the local and national economy if implemented within the law. Kimtai stressed the importance of the project, highlighting its dual significance for both the nation and the local community in Kakamega. He sought to allay fears by outlining the financial benefits structure under the Mining Act, 2016, which ensures that local communities and the county government stand to gain substantially.
The law provides for 10 per cent of royalties to go directly to the community, while 20 per cent is allocated to the county government. Based on projected revenues, Kimtai disclosed that the local community is expected to receive about Sh2 billion over the project’s lifespan, while Kakamega County could earn about Sh4.1 billion. Additionally, one per cent of gross sales estimated at Sh6.8 billion will go directly to the community, separate from royalties. He emphasised that these funds would be disbursed directly by the State Department for Mining, eliminating delays previously experienced under the National Treasury system.
Kimtai maintained that no mining would commence without strict adherence to legal requirements, including consent of landowners and occupiers, full compensation before operations begin, mandatory public participation through a 42-day gazette notice period, and approved Environmental and Social Impact Assessments. He added that the government would respect the outcome of the ongoing petition process, warning that mistrust and conflict could derail the project.
Speaking during the same occasion, Kakamega County Assembly Speaker James Wanzala Namatsi confirmed that the House has already received two petitions from the public raising concerns over the mining activities in Isulu, Bushiangala, and Ikolomani areas. The petitions touch on environmental risks, community rights, and the broader socio-economic impact of the project, placing the Assembly at the centre of a sensitive and high-stakes process.
Namatsi noted that the Assembly is constitutionally mandated to represent the interests of residents and ensure accountability, adding that the petition process is a key mechanism for public engagement. He revealed that the House is considering holding sittings within affected communities to enhance public participation and ensure residents’ voices are heard directly. The Speaker cautioned that mining projects often generate tension and must be handled carefully to balance development and community welfare.
The induction workshop, organised by the County Assemblies Liaison Committee Secretariat (CLACS) in collaboration with the State Department for Mining, aims to equip MCAs with legal and procedural knowledge on handling petitions.
