The Government has moved to reassure residents of Isulu and Bushangala areas in Kakamega County where an investor has discovered gold haul worth 683 billion shillings that they stand to gain immensely once mining commences.
Government Spokesperson, Dr. Isaac Mwaura, has also guaranteed the residents who will be affected in the 337-acre land, that has been identified for mining, that no one will be displaced without proper compensation.
Dr. Mwaura outlined that there is a clear framework under the mining Act for revenue proceeds that protects host community interests as well as ensuring that natural resources within the country benefit all Kenyans.
Mwaura said under the Act, 70 per cent of the mining proceeds will go to the National government, 20 per cent to the host Kakamega county government while 10 per cent to the local community.
The Spokesperson reassured further that the mining Company is also required to ensure that one percent of the annual gross earnings, under the royalty framework, is pooled towards local community development, with priority investments in water, roads, schools, health facilities, among others.
“We have a very clear mining law that is anchored in the Mining Act and is aimed at ensuring minerals is worth to support national development, county priorities and local communities”, he affirmed.
“Large-scale mining companies. Like the one that will be based here, must negotiate and sign a Community Development Agreement (CDA) with host communities and must invest a minimum of one percent of annual gross mineral sales into community agreed development project,” he emphasized.
Mwaura made the remarks in Kakamega at the site of the ongoing construction of a 5.8 billion gold refinery in Kakamega, Monday, as he began a weeklong tour of development projects in the four counties of western region of Kakamega, Vihiga, Bungoma and Busia that seeks to showcase several development projects being undertaken by the National government in the region.
The Government Spokesman said the utilization of the Funds will be overseen by a 14- member Committee, saying this will ensure transparency in the exercise to help create jobs, reducing poverty and improving livelihoods.
He said the discovery of the gold in the area, will help improve gold reserves at the Central Bank of Kenya (CBK), will increase the country’s revenue base and currency strength as well as ensure improvement of local infrastructure.
Dr. Mwaura further said the Kenya Kwanza Administration is committed to equitable distribution of development across the country in all sectors, from infrastructure, economic stimulus markets, roads, education, agriculture among other sectors.
“In the Western region, we have 77 major projects at various stages of development and President William Ruto was here a week ago when he launched various projects”, he said. We are committed to ensure no region is left behind” added the Government Spokesperson.
He enumerated some of the ongoing projects that include Affordable Housing projects in all the four counties, roads, water supply, Economic Stimulus Projects and markets, the ongoing construction of the 5.8 Kakamega Gold refinery that is 88 percent complete among other projects.
Shanta Gold , a British mining firm is seeking to have 337 acres of land in the Isulu-Bushangala area, to commence large-sale gold mining, but the residents have been jittery about welfare in the event of relocation.
By George Kaiga
