British firm discovers gold worth over $5B in western Kenya

NAIROBI, Kenya

A British mining company on Wednesday announced the discovery of extensive underground gold deposits in western Kenya’s Kakamega County, estimated to be worth more than $5.28 billion (Sh683 billion), in what officials describe as a historic milestone for the country’s mineral sector.

The firm, Shanta Gold Kenya Limited, said the discovery was made within the Lirhanda Corridor, a 1,200-kilometer mineral belt running through Kakamega and Vihiga counties, following years of intensive exploration and drilling.

“The project is aimed at obtaining the required authorization to mine the Isulu-Bushiangala gold resources for economic purposes,” the company said in a statement.

“This may lead to the enhancement of local economic development through job and business opportunities and significant contributions to the government of Kenya through taxes, royalties and revenue contributions, which are likely to transfer into the local and regional economic growth,” the company added.

The new reserves are expected to transform Kenya into a key player in East Africa’s gold industry, which has long been dominated by neighboring Tanzania and Sudan.

Shanta Gold said the find includes high-grade ore suitable for commercial mining and that feasibility studies are underway for underground extraction.

The company plans to invest $208 million (Sh26.86 billion) to develop the mine and processing plant, a move that could make the Lirhanda project Kenya’s first large-scale underground gold operation.

Mining and mineral processing engineer Brian Mwangi Njoroge, founder of a startup supporting artisanal miners in Migori, Kenya, told Anadolu the newly confirmed gold deposits in Kakamega mark a turning point for the country’s mining industry.

“This discovery confirms what many in the field have long suspected, that western Kenya holds world-class gold potential,” Njoroge said. “With the right infrastructure and regulation, Kenya could move from exploration to full-scale production faster than many expect. The British used to mine the same place during the colonial times; there has always been gold.”

Shanta Gold, which is listed on London’s Alternative Investment Market (AIM), acquired its western Kenya assets from Barrick Gold in 2020 and has since conducted extensive drilling across multiple sites.

The discovery comes amid sustained global demand for gold, with prices near record highs due to economic uncertainty.

Analysts say the timing could make Kenya’s gold sector an attractive alternative for investors seeking new production hubs outside traditional markets.