British mining firm Shanta Gold Limited has confirmed the discovery of gold worth approximately Sh683 billion in Kakamega South, marking one of Kenya’s most significant mineral finds in recent years.

The company announced that it had verified 1.27 million ounces of gold at its Isulu-Bushiangala underground mine, both in the Ikolomani constituency, boosting hopes for economic growth in the region.

According to Shanta Gold, the mining project will span 337 acres and is expected to displace around 800 households.

The firm has assured affected residents that a resettlement and compensation plan is being developed in collaboration with local and national authorities to ensure fairness and compliance with Kenya’s mining regulations.

The company plans to invest up to Sh27 billion in the development of the mine, which includes infrastructure, employment, and community initiatives.

It is also set to pay between Sh560 million and Sh610 million annually in royalties to the government, alongside Sh195 million through the Mineral Development Levy.

Under Kenya’s mining revenue-sharing framework, Kakamega County will receive 20% of the royalties, while 10% will go directly to local communities. The remaining 70% will be remitted to the national government.

Tanzania is also home to Shanta Gold Kenya Limited, a division of Guernsey-based Shanta Gold. The company requested Nema’s clearance in October for a another $137 million (Sh17.7 billion) mining project in the Ramula, East Gem, and Mwibona regions of Siaya and Vihiga.

According to the firm’s geological evaluation, sheared basaltic formations with carbonaceous mudstones and sandstones on one side and ultramafic rocks and conglomerates on the other are where gold mineralisation takes place.