New to the sector, I joined The Impact Facility as CEO three months ago and was thrilled to travel to Kenya in recent weeks to visit our work on (and under) the ground.  What I saw took my breath away. 

I’ve worked in International Development for over twenty-five years across many geographies and sectors, but I have never experienced such dynamic and entrepreneurial people as the artisanal gold miners I met in Kenya. 

The Impact Facility for Sustainable Mining Communities was founded six years ago with a mission to ensure communities endowed with mineral resources are able to develop and prosper as a result of this wealth beneath their feet.  One of the biggest barriers to improving productivity in Kenya is very poor access to formal finance to invest in the growth of their small businesses.  Due to the informal nature of the small mining businesses, mainstream banks regard artisanal mining as too risky to serve.  

One of the most effective ways of increasing productivity is through mechanisation of key mining processes. To address this challenge and opportunity, The Impact Facility developed an innovative ‘Lease-to-Purchase’ financing initiative to enable artisanal gold miners to invest in the equipment they need to transform their businesses.

An important objective of the work focuses on health, safety and the environment, in particular supporting miners to shift away from using mercury in gold processing – which is damaging to health and the environment – by supporting miners to invest in mercury-free processing equipment and techniques.

Most of our work with gold miners is focused in Migori County near the Tanzanian border, in a gold-rich seam that runs through Kenya, Tanzania and Uganda near Lake Victoria. I travelled with our team of mining engineers and investment specialists to visit mining clients to understand their experiences, challenges and opportunities. I was lucky enough to climb down four mine shafts in one day (a record for the local team – so they didn’t give me an easy ride…) and talk with the miners.

Case Study

My visit to the Antelope mine in Migori County particularly struck me.  This mine dates back to the 1930s. It was operated for 30 years and then abandoned in the ’60s. William Bobbo, the proprietor, took over the mine six years ago and became The Impact Facility’s first client in 2020. He is now on his third round of equipment financing.  With the support of The Impact Facility, he has invested in a compressor, mine hoist, generator, and ball mill. He also operated a VAT leaching plant, enabling the mine to move away from using mercury to process the gold ore.  Mr Bobbo told me that without the financing and technical support from The Impact Facility, he would not have been able to develop the mine as he has done and now employs over twenty people.   So, clearly, the investment has resulted in the growth of this small mining business and increased employment in an area with limited livelihood opportunities.

Mining as a business – contrary to popular perception that artisanal gold miners are desperate individuals forced to dig underground due to lack of other opportunities, they are  entrepreneurial people who realise the business opportunity at hand and have made a conscious decision to invest. 

It’s tough – having said that, mining for gold is tough and dangerous work.  Accidents are frequent, and fatalities tragically happen with some regularity.   However, the mines can be made much safer by following best practices in mine support, using personal protective equipment and by the mechanisation of their work.  

Money Money Money – perceptions amongst financial institutions need to change. Mining is a viable business, and The Impact Facility in Kenya is demonstrating that these miners are investable. 

Lastly, I was inspired by the artisanal miners I met. Their energy and business savvy are hugely impressive.  Also, deep gratitude to The Impact Facility team in Kenya, who work with such dedication to support their artisanal gold mining clients.