Kenya Launches First Gold Refinery: Economic Boost Expected
Mary Owano
By Strilus Bellbut and Mary Owano
Kenya’s economy is set to receive a significant boost with the launch of a 5.8 billion shillings gold refinery in Lidambitsa, Ikolomani constituency, Kakamega County.
The refinery, the first of its kind in the country, is expected to be operational by June next year and aims to transform the mineral mining sector.
Mining, Blue Economy, and Maritime Affairs Cabinet Secretary (CS) Salim Mvurya, who presided over the groundbreaking 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.”
To support these miners, the government has formalized their activities through the formation of artisanal miners' cooperative societies, enabling them to work without harassment.
“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,” said CS Mvurya.
He urged the local community to establish a Community Development Agreement Committee to receive one percent of the refinery's proceeds for local development.
“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,” he announced.
As part of its Corporate Social Responsibility, the company is mandated to set up a health center, provide piped water, and other social amenities.
Highlighting Kenya’s mineral wealth, Mr. Mvurya noted, “The country has an immense underground wealth and a geological survey found that there were 970 mineral deposits countrywide.”
To further support the sector, the government plans to construct a state-of-the-art mineral testing laboratory in the area to bolster the efficiency and quality of mineral mining and value addition.
Local Members of Parliament praised the initiative, emphasizing that the refinery will create employment opportunities and stimulate economic activities in the region.
