Kenya Unveils US$5.29 Billion Gold Discovery, Its Largest in Decades

Kenya has marked a historic moment in its mining sector with the announcement of a 5.29 billion dollar gold discovery at the Isulu Bushiangala project in Kakamega County. This exceptional find, confirmed by Shanta Gold Limited, represents the country’s largest gold discovery in decades and signals the potential transition from small scale artisanal activity to industrial scale gold production. With a defined resource of 1.27 million ounces, the project is poised to reshape Kenya’s economic landscape by drawing in new investment, strengthening local value chains and positioning the country as a competitive frontier destination for global mining capital.

The proposed development plan centres on establishing a large scale underground mine spanning 337 acres and utilising advanced Long Hole Open Stoping technology, a method selected for its efficiency, safety benefits and suitability for steeply dipping ore bodies. Supporting infrastructure is already mapped out, including a 1,500 tonne per day processing plant, a 12 megawatt power station and a modern tailings storage facility. Construction is estimated to cost between 22 billion and 27 billion Kenyan shillings, with an expected mine life of at least eight years. Early projections indicate that revenue from royalties, taxes and community development commitments will deliver substantial economic returns to both national and local stakeholders.

Under Kenya’s current fiscal framework, the government will receive a 3 percent royalty on gold output, of which 20 percent will flow directly to Kakamega County and 10 percent to local communities. Shanta Gold will additionally contribute an extra 1 percent of the total gold output value to surrounding host areas, reinforcing its social investment obligations. These revenue streams are expected to stimulate job creation, upgrade local infrastructure and catalyse broader commercial and service sector activity within the region. The discovery also arrives at a time when Kenya produced only 410 kilograms of gold in 2023, highlighting the dramatic scale of growth potential unlocked by the Isulu Bushiangala deposit. Kenya’s ranking as the sixth most attractive African mining investment destination in the 2023 Fraser Institute Survey further strengthens the outlook for new exploration and development.

While the project carries enormous economic potential, environmental considerations and land related concerns have been acknowledged from the outset. Authorities and the developer have committed to aligning all processes with Kenya’s Land Act and international standards for resettlement and environmental management. Final approval will rest with NEMA, whose assessment will determine whether the project proceeds into construction. If approved, the mine could serve as a transformative anchor for Kakamega County, elevating Kenya into the ranks of Africa’s emerging commercial gold producers and contributing meaningfully to the country’s long term economic diversification.

Mini Glossary

• Long Hole Open Stoping: An underground mining method where long, closely spaced holes are drilled and blasted to extract ore efficiently.
• Tailings storage facility: Engineered infrastructure used to safely store the waste materials left after ore processing.
• Royalty: A government mandated payment based on a percentage of the value or volume of minerals produced.
• NEMA: The National Environment Management Authority, Kenya’s environmental regulatory body.