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Lobby warns Kakamega gold belt standoff risks pushing away investors
In an environmental impact assessment report filed with the National Environment Management Authority (Nema), the firm revealed that it plans to invest $208 million (Sh26.86 billion) in the project.
The Kenya Chamber of Mines (KCM) has warned that growing political interference and mounting tensions in the Kakamega gold belt could undermine investor confidence at a time when the country is seeking new capital for the extractive industries.
The lobby on Thursday sounded the warning after British-owned Shanta Gold Kenya Limited announced plans last month for underground gold mining in Kakamega, sparking deadly confrontations over likely displacement and proposed compensation for residents.
In an environmental impact assessment report filed with the National Environment Management Authority (Nema), the firm revealed that it plans to invest $208 million (Sh26.86 billion) in the project.
The company estimates that the gold deposits in the area are worth $5.28 billion (Sh683.04 billion), highlighting the scale of the project and the stakes involved for the company and the surrounding communities.
A public participation forum organised by Nema last Thursday turned violent after residents stormed the venue, accusing officials of not paying attention to their concerns over displacement and compensation.
Police responded with force and reports indicate that four civilians were killed, more than 30 people were injured — some with gunshot wounds — and 63 others were arrested.
"KCM’s position is guided by its core principles of due process, impartiality, non-politicisation, respect for all parties, and protection of Kenya’s investment climate," said the lobby's CEO, Brian Simiyu, in a statement.
"As the body representing Kenya’s mining industry, KCM is committed to fostering an orderly, lawful and respectful environment for all stakeholders in the sector."
The lobby affirmed Shanta Gold as a duly licensed investor operating under the Mining Act of 2016 in Kenya, while recognising the long-established artisanal and small-scale mining communities in Kakamega and Vihiga.
However, local politicians have since escalated the dispute. Trans Nzoia Governor George Natembeya and Kakamega Senator Boni Khalwale have accused the state of enabling a foreign-driven land grab disguised as development. They argued that the proposed ‘Sh3 billion’ compensation package defies logic when the gold beneath the affected villages is valued at more than ‘Sh680 billion’.
This comes at a time when the government claims to have enhanced the formalisation of the artisanal mining sub-sector by registering their co-operatives. "We have continued to facilitate the extraction of gold and other minerals by formalising the artisanal mining sub-sector," Harry Kimtai, the PS in the State Department of Mining, told the Business Daily.
