By Business Insider Reporter
East Africa’s mining sector is on the verge of a profound shift following the announcement of a massive gold discovery in western Kenya. The find, valued at more than US$5.28 billion, is Kenya’s most significant mineral breakthrough in decades and one that could challenge Tanzania’s long-standing dominance in the regional gold industry.
Shanta Gold Kenya Limited, a British-owned subsidiary listed on London’s Alternative Investment Market (AIM), revealed that years of drilling and geological mapping in the Lirhanda Corridor – a 1,200-kilometre greenstone belt stretching across Kakamega and Vihiga counties – had confirmed extensive underground deposits of high-grade ore.
The discovery marks the first time Kenya has secured commercially viable gold reserves capable of supporting a full-scale underground mining operation.
The company now plans to invest US$208 million to develop the Isulu–Bushiangala mine, complete with processing facilities, underground tunnels and regional infrastructure.
If the project proceeds as expected, it will be Kenya’s first modern, large-scale underground gold mine and could catapult the country into the ranks of East Africa’s leading gold producers.
For decades, the region’s gold narrative has been shaped largely by Tanzania, home to some of Africa’s most lucrative deposits. Tanzania’s mines – from Geita to Bulyanhulu – form the backbone of East Africa’s production and have placed the country firmly on the global mining map. Yet Kenya’s recent breakthrough suggests that the Lake Victoria greenstone belt, which geologically links the two countries, has far more potential than previously realised.
The implications for the wider region are considerable. Geologists have long argued that the mineral-rich formations running through northern Tanzania extend into Kenya, Uganda, Rwanda and Burundi. The confirmation of world-class deposits in Kakamega strengthens that case and is expected to revive exploration interest across East Africa. Investors who once viewed Kenya as a low-priority frontier market may now reconsider, particularly at a time when global gold prices are hovering near record highs.
Mining and mineral processing engineer Brian Mwangi Njoroge, founder of a local start-up supporting artisanal miners in Migori, describes the discovery as a “turning point” for Kenya and for the region as a whole.
He notes that colonial-era records hinted at substantial reserves in western Kenya, but post-independence mining never gained the momentum needed to unlock the area’s true potential.
Now, he believes, the region stands on the edge of a new mining era – one driven not by small-scale activity, but by industrial investment and modern extraction technologies.
The economic impact for Kenya is expected to be far-reaching. The mining sector currently contributes less than 1 per cent to the country’s GDP. If the Lirhanda Corridor project advances, analysts project substantial growth in mining revenues, job creation, transport upgrades and foreign exchange earnings.
Local businesses – from logistics firms to food suppliers – are likely to benefit from the ripple effects of increased economic activity linked to the mine’s construction and operation. The communities around Kakamega and Vihiga stand to gain from employment, social investment programmes and improved infrastructure.
But the implications extend beyond Kenya’s borders. Tanzania, which has long been the region’s anchor for gold production, may soon find itself facing stronger competition for exploration capital.
Uganda’s Busia gold belt, long hampered by regulatory challenges, is likely to attract fresh attention. Rwanda and Burundi, too, could see renewed interest in their under-explored greenstone formations.
For the East African Community, the discovery may strengthen calls for a harmonised regional mining framework – one that supports shared geological knowledge, cross-border infrastructure and common environmental standards. With the Lake Victoria basin emerging as a possible new frontier for gold, cooperation may become as important as competition.
The discovery also arrives at a moment when global mining investors are seeking fresh jurisdictions outside traditional markets such as West Africa.
East Africa, with its improving political stability and rising demand for new production hubs, could present an appealing alternative – provided countries deliver regulatory clarity and swift licensing processes.
The opportunity, however, comes with responsibilities. Kenya will need to ensure that environmental safeguards, revenue-sharing structures and community engagement mechanisms are firmly in place long before extraction begins.
The region has seen the downsides of poorly managed mining booms, from deforestation to water contamination and social displacement. Shanta Gold’s project offers Kenya a chance to demonstrate how a modern, transparent and community-centred mine can be developed from the ground up.
As feasibility studies continue and regulatory approvals take shape, the mood within the East African mining community is shifting. For the first time in decades, Kenya is no longer seen as an outlier in regional mining discussions.
The Lirhanda Corridor discovery has placed the country squarely at the centre of East Africa’s emerging mineral story.
Whether Kenya’s new gold chapter unfolds smoothly will depend on political will, regulatory discipline and the ability to strike a balance between investment and environmental stewardship. But one thing is already clear: the discovery has reawakened interest in a region that, for too long, has been underestimated. As East Africa’s mining map begins to redraw itself, Kenya’s newfound deposits may prove to be the catalyst for a broader mineral renaissance – one that could reshape the region’s economic landscape for years to come.
