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Lobby warns Kakamega gold belt standoff risks scaring off investors
Kakamega senator Boni Khalwale dismissed eviction of locals saying that he will not allow greedy leaders to take advantage of Ikolomani people for their benefit.
The Kenya Chamber of Mines (KCM) has warned that growing political interference and escalating tensions in the Kakamega gold belt risk undermining investor confidence at a time the country is courting fresh capital for the extractives sector.
The industry lobby on Thursday sounded the warning after last month’s announcement by British-owned Shanta Gold Kenya Limited of plans for underground mining of gold in Kakamega sparked deadly confrontations over proposed displacement and compensation of residents.
The firm revealed in an environmental impact assessment report filed with the National Environment Management Authority (Nema) that it plans to inject $208 million (Sh26.86 billion) into the operations.
The firm estimates that the gold deposits in the area are worth $5.28 billion (Sh683.04 billion), underscoring the scale of the project and the stakes involved for both the company and surrounding communities.
A Nema-organised public participation forum at a local primary school turned violent last Thursday, after residents stormed the venue, accusing the officials of dismissing their concerns over displacement and compensation.
Police responded with force, which reportedly left four civilians dead, more than 30 people were injured— some with gunshot wounds— and 63 others arrested.
“KCM’s position is guided by its core principles: due process, impartiality, non-politicization, respect for all parties and the protection of Kenya’s investment climate,” the Chamber’s chief executive Brian Simiyu said in a press statement.
“As the apex body representing Kenya’s mining industry, KCM remains committed to fostering an orderly, lawful, and mutually respectful environment for all sector stakeholders.”
Duly licensed
The lobby affirmed Shanta Gold as a duly licensed investor operating under Kenya’s Mining Act 2016, while recognising the long-established Artisanal and Small-Scale Mining (ASM) communities in Kakamega and Vihiga.
Political leaders from Western Kenya have since escalated the dispute, with Trans Nzoia Governor George Natembeya and Kakamega Senator Boni Khalwale accusing the State of enabling what they described as a foreign-driven land grab disguised as development.
They argued that the proposed “Sh3 billion” compensation package defies logic when the gold beneath affected villages is valued at more than Sh680 billion.
This has come at a time when the government said it has enhanced formalisation of the artisanal mining sub-sector through registration of their co-operatives.
“We have continued to facilitate gold and other minerals extraction through formalising the artisanal mining sub-sector,” Harry Kimtai, the Principal Secretary for the State Department of Mining, told the Business Daily in October.
“The ongoing registration of ASM cooperatives has led to a significant increase in formal operations that have contributed to the rise in export volumes” he added.
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