Sh5.8 billion Gold Refinery in Kakamega Hailed as A Game Changer

The economy is set to receive a major boost after the government launched a Sh5.8 billion gold refinery at Lidambitsa area, Ikoloman constituency of Kakamega County.

The gold refinery, a first of its kind in the country, is set to be operational by June next year and is expected to be a game changer in the mineral mining sector in the country.

Mining, Blue Economy and Maritime Affairs Cabinet Secretary (CS), Salim Mvurya, who presided over the ground breaking ceremony, said the venture being undertaken by a foreign investor H-NUO Kenya Company, will benefit thousands of artisanal miners across the country and who have been mining the valuable mineral manually with inherent dangers.

The CS said the government has also formalized the miners’ activities through the formation of artisanal miners’ cooperative societies in order for them to work without being harassed.

He said the miners will no longer be required to travel to Nairobi to be registered, but instead licensing officers will be sent to all mining counties to ensure services are brought closer to the people.

“Artisanal mining has now been decriminalized and as directed by President William Ruto, we shall now support them and offer them equipment in order to work in a safe environment” he added.

Mvurya asked the local community to set up a Community Development Agreement Committee so that they get one percent of proceeds towards local development.

He announced that the investors will also pay royalties, with 20% going to the county government, while ten percent of the proceeds will be utilized for development projects in the area.

Mining, Blue Economy and Maritime Affairs Cabinet Secretary (CS), Salim Mvurya and other leaders during the ground breaking ceremony of the Sh5.8 billion gold refinery at Lidambitsa area, Ikolomani constituency of Kakamega County. Photos by George Kaiga

“We have agreed with the investor to follow the due process and offer job opportunities and tenders for services that can be sourced locally to the local people,” he added.

As part of the company’s Corporate Social Responsibility, the CS directed the Company to set up a health center, piped water and other social amenities as a way of giving back to the community.

Mvurya said that the country has an immense underground wealth and that a geological survey found that there were 970 mineral deposits countrywide.

He said the government is also planning to construct state-of-the-art mineral testing laboratory in the area to bolster the efficiency and quality of mineral mining and value addition.

On his part, Mining PS Elijah Mwangi said the setting up of the gold refinery is a game changer in the region and will put Kenya on the world map of gold producing countries.

The local Member of Parliament Bernard Shinali, through the National Government Constituency Fund (NG-CDF) has already offered land for the purpose.

Also present was the Kakamega County women representative Elsie Muhanda and members of Parliament Emmanuel Wangwe (Navakholo), Fredrick Ikana (Shinyalu), Malulu Injendi (Malava) and John Waluke(Sirisia).

The legislators hailed the government for the initiative saying living standards of the local people would greatly improve.

By George Kaiga