Money Markets
The Ngamia 1 oil rig in Turkana County. A World Bank unit has approved
Sh4.4 billion in funding for oil and gas skill-building in Kenya.
Photo/FILE
By Gerald Andae
In Summary
The World Bank will disburse Sh4.4 billion ($50
million) to finance Kenya’s oil and gas industry. The money approved by
the World Bank’s board of executive directors last week will, among
other things, finance the crafting of laws and training of officials to
manage the new sector transparently.
Specifically, the loans to be advanced under the Kenya
Petroleum Technical Assistance Project would be invested in developing
measures to generate more private investment, promote efficient
production, and increased government revenues.
“The government of Kenya acknowledges that the
development of a successful petroleum sector is never about petroleum
alone, but also about managing its impacts for sustainable development,”
said World Bank country director for Kenya Diarietou Gaye.
She said the bank supports government efforts to
streamline the sector to increase efficiency in policy formation and the
private sector’s participation in the exercise. She noted that
successful implementation of the project would pave the way for economic
growth and contribute to poverty reduction and shared prosperity.
To ensure transparency and good governance in oil
contracts and revenue, World Bank is calling for collaboration between
the national and county governments hosting petroleum resources. The
Bank has also called for the participation of civil society
organisations, private sector and local communities in these areas.
The World Bank project is intended to elevate
petroleum activities to contribute to tax and export revenues. It is
also expected to support entrepreneurial activities by improving the
investment climate for the private sector and enhancing the oil and gas
legal and institutional framework.
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