The government has formally granted Shanta Mining Company Kenya a licence to begin large-scale gold extraction in the Ramula–Mwibona belt straddling Siaya and Vihiga counties.
The move is set to unlock one of Kenya’s most significant mineral discoveries in recent years, with Shanta Gold Company set to extract over 300,000 ounces of gold in the area.
State Department for Mining Principal Secretary (PS), Harry Kimtai said the licence, processed through the Mineral Rights Board and signed by the Cabinet Secretary, gives Shanta the green light to commence preparations for mining, with actual extraction expected to start by June 2026.
Kimtai said another application by Shanta for Kakamega County was undergoing the final round of public participation and National Environment Management Authority (NEMA) processes.
Speaking in Kisumu during an inception meeting with stakeholders from Vihiga and Siaya counties, the PS said the approval marks a major step toward positioning western Kenya as the country’s next major mining hub after Kwale’s titanium fields.
He said the project will serve as a model for future mining investments, adding that national and county institutions must jointly ensure an investor-friendly environment while upholding transparency, fairness and strict regulation in dealings with communities.
To guide the process, PS Kimtai announced the creation of Joint County Project Implementation Committees co-chaired by county commissioners and CECs for natural resources from both counties.
The committees will bring together all regulatory agencies—including NEMA, Agriculture, Housing and Lands—and spearhead community engagement throughout the life of the project, working alongside a national-level project committee.
Kimtai also moved to address rising anxiety over compensation for families that will be displaced by mining activities.
He cautioned against speculative land buying by opportunistic middlemen in the project area warning that the government would protect residents from manipulation and misinformation.
The PS added that compensation for land, crops, property and resettlement will follow Kenya’s mining, land and environmental laws, with community leaders involved at every stage.
Government officers, he said, will accompany Shanta in all engagements to ensure clarity and fairness.
On environmental protection—an issue that has cast a shadow over past mining ventures—the PS said companies will not be allowed to operate without setting aside funds for land rehabilitation.
He explained that all mining firms must deposit an environmental protection bond with NEMA, which will be used to restore the land if a company fails to fulfil its obligations at closure.
The newly formed committees will monitor Shanta’s operations quarterly, carrying out compliance checks and ensuring the project adheres to sustainable mining practices.
A Post-Mining Land Use Committee will be constituted during the final stages to certify that all restoration requirements have been met before the bond is released back to the company.
The project, he said was expected to significantly contribute to Kenya’s plans to build a Sovereign Wealth Fund, with mining royalties earmarked as one of the key financing sources.
Under the Mining Act, royalties will be shared between the national government (70 per cent), county governments (20 per cent) and the local community (10 per cent).
In addition, residents will receive 1 per cent of gross sales through a Community Development Agreement committee, with the funds managed independently.
Kimtai cited Kwale County—set to receive Sh1.16 billion in royalties—as evidence of the revenue potential awaiting Siaya and Vihiga once extraction begins.
The company has committed to start full operations by June 2026, a timeline Kimtai said government agencies must support by speeding up approvals, guiding resettlement and coordinating engagements with local communities.
Shanta, which also operates in Tanzania, becomes only the second large-scale mining firm licensed in Kenya in the past decade.
Kimtai affirmed that the project aligns with President William Ruto’s broader push to industrialise the country, expand natural resource revenues and propel Kenya toward high-income economic status.
Shanta Mining Company General Manager Jiten Diwecha assured the public of strict adherence to national laws, environmental safeguards, and international mining standards as the project rolls out.
Diwecha said the company’s ongoing exploration work has so far identified an estimated 300,000 ounces of gold, valued at approximately $4,100 per ounce, though continued drilling is expected to increase the resource estimate as the project matures.
He said Shanta has already secured mining consent from about 75 per cent of the 1,000 households within the project footprint, adding that valuation and socio-economic assessments for compensation were underway.
The process, he noted, will follow government guidelines and will be overseen by the committees formed by the Principal Secretary to ensure fairness, transparency, and individualised disclosure for affected families.
Diwecha stressed that the Ramula-Mwibona project will be an open-pit mine with all mitigation measures fully captured in the Environmental and Social Impact Report.
He said the company has built its safety and compliance track record through its existing operations in Tanzania, where independent auditors routinely review processes, chemical handling protocols, and pollution-control mechanisms.
“Rest assured, we have all the mitigations in place,” he said, emphasising that Shanta was committed to responsible mining and minimising environmental disruption throughout the life of the project.
By Chris Mahandara
