A new gold refinery taking shape in Ikolomani, Kakamega County, could change how Kenya processes and trades gold once it becomes operational.
The Lidambitsa Gold Refinery, a flagship project under the Ministry of Mining, is now at an advanced stage of construction, according to Interior Principal Secretary Raymond Omollo. The facility is expected to provide local processing capacity while creating a more organised market for artisanal and small-scale miners.
The project dates back several years. In 2020, the Kakamega County Government signed an agreement with the national government to establish a gold refinery at Lidambitsa, with land set aside in Idakho East Ward, Ikolomani.
From raw gold to local processing
The refinery is being developed with the aim of keeping more value from Kenya’s minerals within the country instead of depending mainly on the trade of unprocessed material.
Omollo said the plant is expected to become Kenya’s first modern gold refinery built to international standards. It will also have the capacity to recover minerals that occur alongside gold deposits.
These include silver, copper, zinc and other base metals, giving the facility a wider role in mineral processing than gold alone.
The project is therefore expected to contribute to value addition while supporting Kenya’s participation in the regional minerals trade.
What the refinery means for miners
For artisanal miners, one of the major changes could be the creation of a formal market for their produce.
The government says the refinery will provide a structured and transparent avenue through which small-scale miners can sell their gold, reducing their dependence on informal brokers.
The idea is not entirely new. Earlier government plans for the facility identified artisanal and small-scale miners as the main beneficiaries and aimed to provide them with a reliable market for gold.
The refinery is also expected to receive minerals from other parts of Kenya and potentially from across the East African region.
That could give Kakamega a larger role in mineral refining and trading if the facility attracts producers and traders from neighbouring countries.
More than a processing plant
The Lidambitsa complex has been designed as a sizeable industrial facility rather than a standalone processing unit.
Plans include a processing plant, laboratory, administration offices and secure storage areas. The complex will also have a powerhouse, staff accommodation, cafeteria, clubhouse, helipad and police post.
Security has been incorporated into the project because of the risks associated with high-value mineral trading.
Omollo said security coordination will support efforts to tackle mineral-related fraud, illegal trading networks and other activities that could undermine legitimate miners and investors.
The environmental assessment for the project also provides for measures including controlled access, security infrastructure and a police post at the facility.
Kakamega’s changing mining landscape
The refinery comes as Kakamega seeks to formalise and expand its gold industry.
The county has a long history of artisanal gold mining, particularly in Ikolomani, while the government has been pursuing wider reforms aimed at increasing mineral value addition and bringing more mining activity into the formal economy.
In July 2026, the government unveiled a draft Minerals, Mining and Beneficiation Policy aimed at increasing the contribution of mining to the economy and promoting local processing of minerals.
The refinery is part of that broader shift.
If completed and fully operational, the Lidambitsa facility could create jobs, generate opportunities for businesses around the plant and increase government revenues from mineral activities.
For Kakamega’s mining communities, however, its significance will ultimately depend on how effectively local miners are integrated into the formal value chain and whether the promised economic benefits reach communities around the mining areas.
The government says the facility is expected to help move Kenya’s gold industry away from informal trading towards a more regulated system in which more value is generated locally.
