Government Outlines Major Investments, Mining Gains in Western Kenya Tour
The government maintained that the distribution mechanism for royalties was still being worked out.
The flagship projects include the gold mining factory, currently 88 percent complete with a construction cost of Ksh 129 million. Photo/Courtesy
By Ruth Sang
The government highlighted progress that major developments underway in the western region were having an economic impact and ensuring long-term benefits to local communities. This became evident during a weekly press briefing on Monday in Ikolomani, Kakamega County, as the State Department for Mining continued its four-day official tour to showcase ongoing national projects.
A total of 77 government-funded projects are currently being implemented in the region, the briefing indicates. The flagship projects include the gold mining factory, currently 88 percent complete with a construction cost of Ksh 129 million.
Officials said that the newly discovered gold valued at over Ksh 683 billion marked a great milestone for the region and the country. The massive find is expected to boost Kenya’s mineral earnings and stimulate local development.
As outlined under the Mining Act, Cap 306, the royalty distribution from mineral revenues will follow the stipulated sharing formula: 70 percent to the national government, 20 percent to the respective county government, and 10 percent to the mining communities. Authorities confirmed that the National Treasury has already provided the State Department for Mining with the official account through which royalty revenues will be collected.
In addition, mining investors will have to contribute 1 percent of their gross sales to the CDA. This fund will be managed through a 14-member committee for complete transparency and direct benefit to the local populace. The government maintained that the distribution mechanism for royalties was still being worked out.
The State Department also announced rolling out a national Gold Buying Programme, which will be carried out through the Kakamega Gold Refinery and the Central Bank of Kenya to streamline gold trade, curb illegal sales, and boost national reserves.
In addition to mining, the government is undertaking numerous projects for development in western Kenya, which include new markets, student hostels, road upgrades, water supply projects, County Aggregation and Industrial Parks, and Export Processing Zones like the one in Nasewa, Busia County. The officials reiterated that the government was still resolved to share resources equitably in all counties to ensure balanced development and equitable sharing of resources.
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