Kenya sits on a vast, multi-trillion-shilling mineral wealth that could transform the nation’s economy overnight. Yet, as of December 2025, the mining sector contributes a measly 0.7% to GDP, dwarfed by agriculture and tourism. This stagnation is not just bad luck; it’s a toxic brew of regulatory red tape, violent community backlash, environmental nightmares, and the infamous “resource curse” where riches enrich a few while permanently cursing the many. Below are 3 case studies which illustrate this painful reality, showing why Kenya’s buried treasures will likely remain buried.
Case Study 1: Ikolomani Gold – The Powder Keg of Displacement
Western Kenya’s Ikolomani region, located in Kakamega County, boasts gold deposits that could reshape the nation’s economic trajectory. The area contains gold deposits worth Sh683.04 billion, valued at 4.1% of Kenya’s entire Gross Domestic Product, according to environmental impact assessments submitted by Shanta Gold. The numbers are extraordinary: 1.27 million ounces of gold at the Isulu-Bushiangala underground mining project, with an average grade of 11.43 grams per tonne. For context, that’s enough gold to fund several years of Kenya’s national budget.
The region has sustained thousands of artisanal miners for decades, many using rudimentary tools and mercury-based extraction methods. Small-scale panning operations have provided livelihoods, though modest ones, for generations of Ikolomani families.
But when Shanta Gold, a UK firm, pushed for industrial-scale mining in 2025, it ignited a political and social powder keg. In December 2025, a public participation forum organized at Emusali Primary School by the National Environment Management Authority (NEMA) to discuss the project erupted in violence, leaving 3 people dead and multiple injuries. Locals rejected Shanta’s plan to seize over 300 acres, displacing more than 800 households. This tragic outcome prompted the Kenya Human Rights Commission (KHRC) to demand the suspension of the Environmental and Social Impact Assessment (ESIA) process, accusing regulators of promoting chaos and ignoring the constitutional right to Free, Prior, and Informed Consent (FPIC) (Source: Citizen TV Report).
The Political Resource Curse: When Minerals Meet Power
The Ikolomani conflict exposed the dark underbelly of Kenya’s mining sector: the resource curse, where mineral wealth becomes a source of conflict rather than prosperity.
Political leaders jumped into the fray. Trans-Nzoia Governor George Natembeya and Kakamega Senator Boni Khalwale accused the State of enabling a “foreign-driven land grab dressed up as development.”
Senator Khalwale declared: “Ikolomani’s gold belongs to Ikolomani’s people. Kakamega’s gold belt belongs to the people of Kakamega.”
Deputy Governor Ayub Savula questioned the logic of displacement: “We know the interest is in the 337 acres of land in Isulu and Bushiangala. But where do they expect the residents to relocate to? As a county government, we will not allow Nema to issue a license to Shanta Gold.”
Fear of Displacement & Inadequate Compensation
At the heart of the resistance lies a fundamental question: What happens to communities when multinational corporations arrive?
The promises of compensation and resettlement ring hollow for people who’ve seen similar projects elsewhere in Africa. Stories of communities displaced and left worse off than before circulate widely. Trust is scarce; skepticism abundant.
Women are particularly vulnerable. Lucy Mugala, a local woman, said: “We won’t relocate because we are taxpayers and want the government to let the people of Ikolomani enjoy their rights.”
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Case Study 2: Mrima Hill’s Niobium and Rare Earths – The $62 Billion Sacred Forest
If Ikolomani’s gold represents Kenya’s present mining struggles, Mrima Hill in Kwale County represents its future – or perhaps, its inability to have one.
Mrima Hill sits on huge rare-earth deposits that Cortec Mining Kenya, a subsidiary of UK and Canada-based Pacific Wildcat Resources, estimated in 2013 were worth $62.4 billion, including large stores of niobium used to strengthen steel. The hill spans approximately 390 acres of forested land near Kenya’s Indian Ocean coastline. The region contains 40 million tonnes of ore with around 5% total rare earth oxide content, plus 680 million kilograms of niobium.
To understand what this means: Rare earth elements are critical for smartphones, electric vehicles, wind turbines, military equipment, and virtually every advanced technology driving the 21st-century economy. Light and heavy rare earth elements such as neodymium, praseodymium, dysprosium, and terbium support the production of permanent magnets for wind turbines and electric vehicles.
China currently controls over 70% of global rare earth production, creating geopolitical vulnerabilities for the United States, Europe, and other powers. Kenya’s Mrima Hill could be a game-changer in the race to diversify supply chains.
Sacred Land vs. Economic Gain
But there’s a problem: Mrima Hill isn’t just a mineral deposit. It’s sacred.
For the local Digo community, Mrima Hill is far more than a mineral reserve – it is a sacred forest that holds cultural, spiritual, and ecological significance. The forest contains ancestral shrines, traditional prayer sites, and medicinal plants that have sustained the community for generations. To the Digo people, mining Mrima Hill would be akin to desecrating a cathedral — economically rational perhaps, but spiritually catastrophic.
US official Marc Dillard visited the hill in June when he was serving as interim ambassador to Kenya. Other foreigners also attempted to visit in recent months, including Chinese nationals who were turned away, according to Juma Koja, a guard for the Mrima Hill community. The visits reflect the global scramble for rare earths between Chinese and America, with the latter seeking to secure critical supply chains.
Yet the local community remains divided and suspicious. Some see opportunity; most see threat. “Why should we die poor while we have minerals?” asked Domitilla Mueni, a resident of the Mrima Hill area. But her perspective isn’t widely shared. For every Domitilla hoping to cash in, there are dozens fearing eviction, environmental degradation, and the loss of their sacred sites.
Policy & Corruption Paralysis: The License That Never Was
The story of Mrima Hill’s development is a masterclass in policy dysfunction and alleged corruption.
Cortec Mining Kenya received a mining license in the early 2010s and invested heavily in exploration, confirming the extraordinary value of the deposits. The company was poised to begin development, potentially transforming Kenya into a major rare earth producer.
Then, in 2013, everything stopped.
A 2013 report by Cortec Mining Kenya estimated that rare earth and niobium deposits could be worth over US$62 billion, but the company’s license was revoked due to what authorities called “environmental and licensing irregularities.” However, the company alleged something far more sinister: that the license was revoked for refusing to pay a bribe to the then-Mining Minister. While these allegations were never proven in court, they became part of Kenya’s mining folklore. Following the Cortec controversy, Kenya imposed a temporary ban on all new mining licenses in Kwale, effectively freezing the $62 billion asset.
For over a decade, Mrima Hill has remained in limbo. Australian firm RareX and others have expressed interest, but the combination of unresolved community opposition, environmental concerns, and policy uncertainty has prevented progress. In early November 2025, government officials announced ongoing negotiations with multinational mining companies to develop the site under new critical-mineral investment frameworks, but skepticism remains high.
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Case Study 3: Manganese Mining in Kilifi – The Logistics Nightmares
As the world transitions to clean energy, manganese demand is exploding. The metal strengthens steel for wind turbines and enhances battery cathodes for Electric Vehicles. Kenya has significant manganese deposits, particularly in Kilifi, Samburu, Shimba Hills and Voi.
Marula Mining, a UK-listed firm, has poured investments into these sites. The company acquired 100% ownership of the Kilifi Manganese Processing Plant located approximately 60 km from the Port of Mombasa in the Tezo Area, Kilifi County. The facility can process approximately 10,000 tonnes per month of manganese ores. Metallurgical testwork confirmed that the Kilifi plant is capable of producing a saleable product of up to 40% manganese, achieved without major upgrades to the current plant configuration.
On paper, it’s a textbook success story: local resources, processing infrastructure, proximity to export facilities, and access to global markets through Mombasa Port.
In reality, it’s been a grinding battle against Kenyan realities.
Logistics Nightmares: The Hidden Cost of Doing Business
While the manganese is there and the processing plant works, getting product from mine to market has proven extraordinarily difficult.
- Poor Road Infrastructure: Transporting ore from Larisoro to Kilifi requires navigating poorly maintained roads that become impassable during rainy seasons. Trucks break down. Deliveries delay. Costs mount.
- Port Congestion: Mombasa Port suffers from chronic congestion, bureaucratic delays, and unpredictable clearance times.
- Fluctuating Prices: When prices drop, marginal operations like Kenya’s become unprofitable. When prices rise, supply chain bottlenecks prevent capitalizing on market opportunities.
The Path Forward: From Buried Treasures to National Prosperity
Contrary to popular belief, Kenya already has solid policies and legal frameworks. The Mining Act 2016, Community Development Agreements (CDAs), Benefit Sharing Bill, and Environmental Impact Assessment (EIA) frameworks provide a strong foundation for ethical, profitable, and sustainable mining. The challenge is not writing new laws; it’s implementing what already exists consistently, transparently, and professionally.
To truly turn minerals into national prosperity, Kenya must focus on two urgent areas:
Technical Capacity Building:
Mining Engineers Society of Kenya (MESK) has already recognized this gap and is taking the lead. The body has already announced plans for 2026 including the first MESK Mining and Mineral Processing Conference, expanded technical capacity programs, and more field visits to active mines.
In addittion, MESK continues to advocate for investment and improvement in geological surveys, mining engineering programs, environmental science capacity, and regulatory expertise.
Community Engagement:
Mining cannot proceed successfully over community opposition as portrayed in Ikolomani. Genuine consultation, equitable compensation, environmental protection, and benefit-sharing must become standard practice, not afterthoughts.
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