Kakamega County is witnessing a major shift in its mining landscape with the government advancing plans to build the country’s first modern gold refinery.
The facility, located in Ikolomani, sits near the recently verified Isulu–Bushingala gold deposit, estimated at US$5.29 billion (Sh683 billion), sparking both optimism and caution among residents and leaders.
Interior Principal Secretary Raymond Omollo said the initiative comes at a pivotal moment for Kenya’s mineral sector, driven by rising global demand for strategic minerals and renewed emphasis on local processing and value addition.
“Kenya’s mineral sector is entering a new phase of growth, driven by the global demand for strategic minerals, a renewed push for local processing and value addition, and a more attractive investment climate strengthened by recent major gold discoveries,” Omollo explained.
The Lidambitsa refinery, a key project of the Ministry of Mining, is strategically positioned to benefit from the nearby Isulu–Bushingala belt, expected to supply consistent, high-quality ore.
“Positioned at the heart of a region now drawing global attention, the facility is expected to benefit significantly from the nearby Isulu–Bushingala belt, where a massive gold deposit valued at over US$5.29 billion was recently confirmed,” Omollo added.
Construction of the plant began in July 2024 and, when finished, it will mark Kenya’s first internationally standardized gold refinery. Omollo emphasized that supporting small-scale miners remains a central goal of the project.
“Its core mission is to provide a fair, transparent, and reliable market for thousands of artisanal and small-scale miners, ensuring they earn just prices, shielding them from exploitation by middlemen, and retaining the full value of Kenya’s mineral wealth within our borders through structured value addition,” he said.
The refinery will include a sophisticated extra-mineral recovery system, capable of processing valuable by-products like zinc, copper, silver, and other base metals. Looking ahead, Omollo stated, “In time, the refinery aims to serve the wider East African Community, positioning Kenya as a regional hub for mineral processing and trade.”
The complex will feature extensive infrastructure including townhouses, an administration block, a powerhouse, gold pre-processing and storage facilities, a cafeteria, a factory section, staff dormitories, a purified gold storage vault, a laboratory, equipment storage areas, a clubhouse, and a helipad. A police post will also be constructed to enhance security.
The government anticipates significant benefits for local communities. “For the people of Ikolomani and the surrounding counties, this project represents far more than an industrial installation. It promises new jobs, stronger local businesses, and increased revenue for both the community and government through royalties,” Omollo said.
The project aligns with the government’s wider plan to promote inclusive growth in the extractives sector under the Ministry of Mining, Blue Economy, and Maritime Affairs.
Nevertheless, Kakamega Senator Boni Khalwale has voiced persistent criticism, raising concerns about the transparency of decision-making and its impact on local residents. “I am deeply concerned about how to ensure the government fully understands the truth of what is happening at Kakamega Gold Mines. I have consistently stood up and fought for my people on these mining issues, and I fear that decisions being made behind closed doors, through hotel meetings, are putting the future of our community at serious risk,” he remarked.
