Politics and policy
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
In Summary
- World Bank's International Development Association lends Kenya Sh4.4 billion at zero interest.
- The loan will support the Kenya Petroleum Technical Assistance Project that aims to draw in investment.
- Energy minister wants Parliament to approve its revised petroleum law to clear a hurdle to more exploration.
A unit of the World Bank has lent Kenya $50 million
(about Sh4.4 billion) at zero interest to support the government's
efforts in building capacity to manage the emerging oil and gas
industry.
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Oil discoveries in Kenya are part of a string of hydrocarbon
finds in the east African region that are drawing in energy firms and
could soon make the area a significant exporter.
Kenya, like other nations sitting on new
discoveries such as Uganda and Tanzania, has out-of-date laws governing
the industry and needs to develop skills to handle new contracts and
other issues required to build the industry.
The loan by the World Bank's International
Development Association would support the Kenya Petroleum Technical
Assistance Project that aims to draw in private investment, ensure
efficient production and help allocate resources, the bank said in a
statement on Thursday.
The funds would also support in the drafting of key
policy and planning documents, as well as enhancing the capacity of
existing government institutions, it added.
Kenyan energy and petroleum minister Davis Chirchir
said in June he wanted Parliament to approve its revised petroleum law
before October, a move that would clear a hurdle to opening up more
blocks to explorers.
The law will an update a 1986 code. It will list
new guidelines on natural gas exploitation not adequately covered now,
allow for the creation of a sovereign wealth fund to save some revenue
and specify how local communities will benefit.
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