$49 Million Injection Revives Dormant Kakamega Gold Refinery

The Kenyan government has released Sh5.8 billion for the construction of the Kakamega Gold Refinery in Ikolomani constituency. The refinery will enable Kakamega to mine and process gold locally, fostering economic growth and value addition for the county. Gold deposits worth Sh171 billion were discovered in the Lirhanda corridor, and the Kakamega-Busia gold belt is estimated to hold $2 billion in gold deposits, presenting significant opportunities for the region.

Government Injects Sh5.8 Billion into Dormant Kakamega Gold Refinery Project

In a significant development for the mining industry in Western Kenya, the Kenyan government has announced the release of 5.8 billion Kenyan shillings (approximately $49 million) to revive the stalled construction of the Kakamega Gold Refinery in Ikolomani constituency. The announcement was made by President William Ruto during the official opening of the inaugural Kakamega International Investment Conference, held at Masinde Muliro University of Science and Technology (MMUST).

President Ruto stated that the resumption of work on the refinery plant is imminent, emphasizing the importance of local value addition for mined minerals. "The government wants to get value for every coin we spend," he said. "To spur the growth of the county economy, we must make meaningful investments that will have a tangible impact on all citizens."

The refinery project is expected to play a crucial role in unlocking the economic potential of the Kakamega region, which has significant gold deposits. The Lirhanda corridor, stretching from Kakamega through several counties, has been estimated to hold approximately 1.31 million ounces of gold, valued at Sh171 billion (approximately $1.5 billion). Additionally, Shanta Gold, an East African gold mining company, has identified gold deposits worth an estimated $2 billion along the Kakamega-Busia gold belt.

Prime Cabinet Secretary Musalia Mudavadi, Trade Cabinet Secretary Rebecca Miano, Mining Cabinet Secretary Salim Mvurya, and host Governor Fernandes Barasa were among the dignitaries present at the investment conference.

Additional Funding for Vihiga Granite Factory and Infrastructure Initiatives

In a further boost to the region's industrial development, President Ruto also announced the release of 2.5 billion Kenyan shillings (approximately $21 million) for the completion and equipping of the Vihiga granite factory. The factory, to be built on a five-acre plot, is projected to create over 1,000 direct jobs and 3,000 indirect jobs through the crushing of granite stones for construction and other industrial applications.

To support investment in Kakamega, a 10 billion Kenyan shillings (approximately $84 million) power transmission line is currently under construction, running from Kibos in Kisumu to Kakamega with multiple substations. The project aims to ensure reliable electricity supply to the county and the wider region, enhancing the viability of industries and businesses.

Harnessing County Potential and Legislative Support

Prime Cabinet Secretary Mudavadi emphasized the need for counties to invest wisely to improve living standards and foster economic growth. "We cannot complain about poverty," he said. "We must work diligently to overcome it through responsible actions and supportive legislation." He urged lawmakers at the national and county levels to enact laws that encourage economic development.

Trade Cabinet Secretary Miano highlighted the government's focus on promoting counties as new hubs for economic activity. She stated that counties with significant agricultural resources, such as Western Kenya, should diversify their economies through investments in value-added processing and industrialization.

Conclusion

The announcement of funding for the Kakamega Gold Refinery and other key projects in the Kakamega region marks a significant milestone in the government's efforts to stimulate economic growth and industrial development in Western Kenya. The investments are expected to unlock the county's vast mineral resources, create employment opportunities, and improve the livelihoods of local communities. The collaborative efforts of the national and county governments, as well as the private sector, will be crucial in ensuring the successful implementation and sustainability of these initiatives.