Kakamega backs $5.3bn gold project as jobs and resettlement take centre stage

About 1,000 direct jobs could emerge from a proposed gold mine in western Kenya, but residents facing relocation and small-scale miners without formal permits remain central to its next steps. Kakamega County Assembly has approved plans for Shanta Gold Kenya’s KES680 billion ($5.3 billion) project in Ikolomani constituency, despite opposition from civil society groups, according to MarketScreener’s report citing The Standard.

The decision gives the proposed large-scale operation county assembly backing after petitions filed in December demanded more transparency, stronger environmental safeguards and broader community consultation. The assembly’s Environment, Natural Resources, Energy, Water and Climate Change Committee held public hearings in response to concerns raised by civil society representatives and local residents. Its findings supported the project’s progress through the regulatory process rather than describing every required approval as complete.

Jobs meet the challenge of informal mining

The committee concluded that Shanta Gold Kenya, a subsidiary of Shanta Gold, had met the standard for meaningful public participation under Kenya’s Mining Act, 2016. It found that existing consultation forums gave local stakeholders an adequate way to contribute and said the company had shown a willingness to work with community structures. That assessment was a key part of the committee’s response to the demands for wider engagement.

The existing consultation arrangements provide an adequate channel for local input, the committee said, according to The Standard.

For the committee, the economic case extends beyond the mine’s estimated 1,000 direct jobs. It said formal operations could give small-scale miners more structured opportunities than artisanal mining, helping them move into regular employment or businesses supplying the mine. But it also identified a problem: local artisanal miners still lack formal permits despite decades of activity. The committee warned that this gap could put them at a disadvantage and leave uncertainty across the sector.

The scale of the proposed development is set out in an environmental impact assessment submitted to Kenya’s National Environment Management Authority, or NEMA. That document values the Ikolomani project at $5.26 billion. Feasibility data cited in it indicate about 1.27 million ounces of gold at an average grade of 11.43 grams per tonne—a measure of how much gold is contained in the rock. The source describes it as one of Kenya’s most significant mining developments.

Relocation and river safeguards remain in focus

For affected residents, a central issue is the Resettlement Action Plan, which sets out arrangements for relocation. The committee said Shanta Gold Kenya was developing the plan and that it would undergo public review and independent validation before implementation. Those steps are intended to reduce governance and human rights risks, placing further scrutiny of the relocation process ahead of any implementation.

The committee also said the environmental and social impact assessment outlined sufficient measures to address risks involving the Yala and Isiukhu rivers within the project area. Separately, it urged the company and government agencies to make engagement more accessible and inclusive, including through consultations in local languages, according to The Star as cited in the report.

The next points to watch are the public review and independent validation of the resettlement plan, continued regulatory progress and improvements in community consultation. The assembly’s backing is a significant step for the proposed mine, but the committee’s own findings keep the treatment of affected residents and the position of informal miners firmly in view.