The Oil for Development programme in Kenya

The petroleum sector is in an early phase of development in Kenya. Since the decision to establish an OfD cooperation with Kenya in 2015, a comprehensive programme of cooperation has been developed.

In parallel, numerous technical capacity-building activities have taken place. A five-year cooperation is set to formally commence in 2019.

Key achievements of programme activities

Enhanced legal and regulatory framework
 
  • The Kenyan government is currently reviewing its legal framework concerning the petroleum sector. A new Petroleum Law was approved in March 2019. The government is also involved in negotiations of various agreements necessary for the development of the sector, including Production Sharing Contract supplements. To support the government in this endeavour, a group of legal experts were trained on legal issues pertinent to the petroleum sector.
 
Increased institutional capacity
 
  • The Kenyan Ministry of Petroleum and Mining has enhanced its competence on how to systematically record and analyse petroleum resource data through capacity building provided by the Norwegian Petroleum Directorate.

  • Training courses provided by the Norwegian Environment Agency and the Petroleum Safety Authority Norway have increased awareness and competence among Kenyan counterparts about the environmental and safety concerns related to oil and gas operations including the oil pipeline that will transport crude oil from Turkana to the Indian Ocean coastline. Hands-on training courses provided by the Norwegian Coastal Administration have improved the oil spill preparedness within the Kenya Maritime Authority and relevant local authorities.

  • Statistics Norway has provided key methodological input to the Kenya Institute for Public Policy Research and Analysis’ (KIPPRA) work on macroeconomic modelling and together with Statistics Sweden has installed a preliminary version of a new business register in the Kenya National Bureau of Statistics (KNBS).
 
Increased transparency and accountability
 
  • Efforts were undertaken in 2018 to analyse the enabling environment for transparency and accountability as it relates to the Kenyan petroleum sector, with a view to strengthening support to accountability institutions, as well as to selected local authorities in Kenya.

  • World Wildlife Fund (WWF) has worked closely with local civil society to increase awareness about environmental hazards related to petroleum sector developments. Concerned about pollution of water sources used by their livestock, local civil society organisations (CSOs) with assistance from WWF formulated a claim submitted to the environmental authorities for social and environmental safeguards regulated by law to be applied. The National Environment Authority (NEMA) acted on the complaint.

  • Three national media houses have hosted members of the Kenya Oil and Gas Working Group in panel discussions on the early oil pilot scheme as well as use of oil revenues. WWF has provided technical and financial support to the members. The debates have created more public awareness on new developments in the sector and have leveraged CSOs as a voice to reckon with in the development of the national transparency framework.
Published 25.05.2016
Last updated 28.06.2019