Kenya is hopeful that the discovery of gold in Kakamega, western Kenya, will give a fillip to the fledgling local currency, which has been in-play against the US dollar, British sterling pound and the euro, among others.

The optimism was expressed by Government Spokesman Isaac Mwaura, who explained that the gold, valued at Ksh683 billion, will improve gold reserves of the Central Bank of Kenya (CBK), besides raising the country’s revenue base and currency strength as well as ensure improvement of local infrastructure.

The optimism coincided with Central Bank of Kenya exchange rates showing that the local currency has slipped marginally to trade at Ksh129.50 to the US dollar from Ksh128 to the dollar the previous week.

Mwaura assured residents of Isulu and Bushangala areas in Kakamega County, where an investor has discovered massive gold deposits that they stand to gain immensely once mining commences.

He also assured property owners that will be affected in the 337-acre land that has been designated the nexus of mining as no one will be displaced without requisite compensation.

Dr Mwaura said there is a clear framework under the mining Act for revenue proceeds that protects host community interests as well as ensuring that natural resources in 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 gave further assurance that the Shanta Mining Company is required to ensure that one per cent of the annual gross earnings, under the royalty framework, is pooled towards local community development, with priority investments in water, roads, schools and health, among other

“We have a very clear mining law that is anchored in the Mining Act, which ensures that minerals are used to support national development, county priorities and local communities”, he explained.

“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 emphasised.

Mwaura made the remarks in Kakamega on Monday (October 18) at the site of the ongoing construction of a 5.8 billion gold refinery in Kakamega, 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.

He 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.

Mwaura pointed out that Kenya Kwanza administration is committed to equitable distribution of development across the country in all sectors, from infrastructure, economic stimulus markets, roads, education and agriculture, among other sectors.

“In western Kenya, we have 77 major projects at various stages of development and President William Ruto was here a week ago to launch various projects”, he said. We are committed to ensure no region is left behind” added the Government Spokesperson.

Some of the ongoing project include affordable housing, roads, water supply, economic stimulus projects and markets, the ongoing construction of Kakamega Gold Refinery that is 88 per cent complete among other projects.

Shanta Gold, a British mining firm wants about 340 acres of land in Isulua and Bushiangala to commence large-sale gold mining, but the residents have been jittery about welfare  in the event of relocation.

• A Tell Media / KNA report / By George Kaiga