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Govt Explains How Profits From Ksh680 Billion Gold Discovered in Kakamega Will Be Shared

EditorBy EditorNovember 13, 2025No Comments4 Mins Read
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Mining Cabinet Secretary Ali Hassan Joho has officially confirmed the massive discovery of gold worth around Ksh680 billion in Kakamega County, assuring Kenyans that both the government and the local communities will gain from the find.

Speaking during an interview on Citizen TV on Thursday, November 13, CS Joho stated that reports of the gold discovery were accurate, adding that the actual value could be even higher than Ksh680 billion.

He revealed that a British company had already pinpointed the exact location of the gold deposits and was preparing to start mining operations soon.

The gold was discovered in the Lirhanda Corridor, a mineral-rich belt stretching about 1,200 kilometers across Kakamega and Vihiga counties. Joho explained that the discovery followed years of exploration and detailed drilling work.

The British firm behind the project has already presented its mining proposal to the government, outlining how it plans to extract the gold responsibly. According to Joho, the company has committed an investment of Ksh26.8 billion to build both a mine and a modern processing plant.

This major investment could mark the beginning of Kenya’s first large-scale underground gold mining operation.

Joho emphasized that revenues from the gold mining venture will be fairly shared among three main beneficiaries: the national government, the county government, and the local community. The income will come in the form of royalties, levies, and taxes.

He detailed that 3% of the total gold value would be paid as royalties, 5% as an export levy, and 1% of the total gold value would go directly to benefit the local community.

Additionally, 10% of the mining asset will be given to the government on a free-carrying basis, meaning Kenya will own part of the mine without having to make a financial contribution.

Beyond monetary benefits, Joho said the local residents would gain from job opportunities, skills training, and economic growth resulting from the company’s investment in the area.

He stressed that the gold project would bring much-needed development to Kakamega and nearby regions.

Addressing why a foreign company was tasked with mining instead of local firms, Joho explained that the gold was found more than one kilometer beneath the ground, which makes extraction extremely technical and expensive.

He noted that Kenya currently lacks the advanced machinery and expertise required for such deep underground mining.

“The gold is buried over a kilometer deep underground. Let’s be honest, you and I as ordinary citizens don’t have the tools or knowledge to mine at that depth. This is why we need a foreign company with the right technology and experience,” Joho stated.

The CS also pointed out that Kenya has lagged behind its East African neighbors in developing its mining sector. He said foreign investment could help the country unlock its full mineral potential and catch up with others in the region.

Joho further reassured small-scale, or artisanal miners, that they would not be sidelined in the process. He revealed that specific areas would be set aside for them to continue their mining activities without interference from large-scale operations.

On concerns about possible displacement of local residents, Joho made it clear that the government would follow the correct legal procedures and ensure fair compensation for anyone affected by the project.

His remarks came at a time when some Kenyans and local leaders had expressed concern over the involvement of a foreign company in mining the country’s valuable resources.

Many feared that the presence of a British firm might reduce the benefits Kenya would get from its own natural wealth. However, Joho assured the public that proper agreements were in place to ensure the country and its people receive a fair share of the profits.

The CS concluded by emphasizing that the Kakamega gold project would not only boost Kenya’s mining industry but also open up new opportunities for investment, job creation, and economic transformation in the western region.

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