Government Unveils Measures After Discovery of Ksh680 Billion Gold in Kakamega

The government has verified the presence of huge gold reserves of up to Ksh680 billion in Kakamega County and has spelled out a detailed strategy that will see the immediate local residents enjoy the historic discovery.

The discovery was made known on Thursday, November 13, by Cabinet Secretary Hassan Joho, who promised the people of the area that the government will put the interests of the community first by having well-planned agreements between investors and the residents of the land. Well, the truth is that in Kakamega, Ksh680 billion of gold was discovered, but that is the only portion discovered; it might even be more, said Joho. The community around the mining area does not need to be concerned on whether they will benefit or not, as the Cabinet Secretary, I will make sure that the investor and the community sign a binding agreement.

Joho insisted that the government would liaise directly with landowners who were affected so that they could be compensated and their rights to property guaranteed.

He emphasized that nobody would be evicted without due process and lose their lands.

The landowners will be consulted to make sure that they are secure as well as achieve value in their land.

Men could not simply be moved out of things.

The CS described that the size and depth of the gold deposits were going to render the artisanal mining process impractical to the majority of the dwellers. He reported that the gold is located between 1 and 2 kilometers underground; this will require a special mining machinery and a great amount of capital investment.

Not everybody is able to mine gold as it is deep underground, which means that one needs special equipment, experience, expertise, technology, and large financial resources.

The investment proposal that Shanta Gold has given to the ministry amounts to $510 million as it was revealed by Joho. The government has also set up a modern gold refinery so as to maximize economic gains and reduce exploitation.

The plant will refine the mined gold locally into bullion instead of exporting raw gold, a step that seeks to enhance transparency and increase the national revenue.

We as a government, have constructed a gold refinery, and this implies that we will never export raw gold.

Gold shall be processed in bullion to guarantee maximum accountability, Joho said.

The find is also a big milestone to the mining industry in Kenya, which is considered by the government as the prime source of economic development and regional development in Kenya.

Joho remarked the ministry is coming up with regulations that will encourage responsible mining, environmental conservation and equitable benefit sharing.

The announcement comes after a thorough investigation of the illegal gold transactions in the country. Only a month ago, the Directorate of Criminal Investigations (DCI) detectives arrested two suspects who were involved in a scam that involved a bogus gold deal of Ksh719 million which targeted an American businesswoman. The suspects, who are Michael Otieno Onyango and Andrew Clifford Otieno, as a statement issued by DCI on October 15, have tried to defraud the foreign investor in a deal worth 5.6 million US dollars involving 70 kilograms of non-existent gold. According to DCI, the fraudsters tempted the American businesswoman into what she believed to be a profitable deal but the matter fell apart when she insisted that she be given confirmation by the Ministry of Mining.

The investor had stipulated that the government officials had to first test the gold before any money can be paid.

As the suspects were unable to show the alleged gold so that it could be inspected, she became suspicious and reported to the authorities. Later probes directed the detectives to a house in Rose Villa Estate, where the pair of suspects were arrested after trying to escape with a blue Mazda CX-5. An inspection of the premises revealed that there were two smelting machines and 19 smelting moulds that were suspected to have been utilized in the fraudulent scheme.

The arrests underscore the renewed concentration of the government to contain fraudulent activities in gold and bring credibility in the mining industry.

Joho once again made it clear that the legitimate investors will be secured and criminal elements using the Kenya mineral potential will be dealt with by the full force of the law.

The discovery of the Kakamega gold will see the government develop the region into a mining hub that will create employment, enhance infrastructure, and boost the morale of the local people.

It is not about gold, it is about empowering our people, Joho would conclude.