DOUBLE JOY

Counties now want revenue share in early oil exports

Yesterday, President Uhuru Kenyatta flagged off the first-ever shipment of Kenyan crude oil

In Summary

• The shipment of 200,000 barrels of crude oil to Malaysia, bought by UK-based Chinese company ChemChina at Sh12 billion, is a culmination of a long journey that started in 2012 when Tullow Oil first discovered oil deposits in Turkana county.

• Uhuru also officially saw off another batch of 119 Kenyan seafarers who were recruited by the Mediterranean Shipping Company to various cruise ships.

President Uhuru Kenyatta arrives at the Kipevu Oil Terminal, Port of Mombasa, to preside over the flag off ceremony of the first Kenyan crude oil shipment as well as receive the 3rd cohort of Seafarer recruits August 26, 2019.
President Uhuru Kenyatta arrives at the Kipevu Oil Terminal, Port of Mombasa, to preside over the flag off ceremony of the first Kenyan crude oil shipment as well as receive the 3rd cohort of Seafarer recruits August 26, 2019.
Image: PSCU

Counties along which early crude exports are being transported through now want a piece of the revenue pie. 

Yesterday, President Uhuru Kenyatta flagged off the first-ever shipment of Kenyan crude oil aboard the MV Celcius Riga.

The shipment of 200,000 barrels of crude oil to Malaysia, bought by UK-based Chinese company ChemChina at Sh12 billion, is a culmination of a long journey that started in 2012 when Tullow Oil first discovered oil deposits in Turkana county.

 

Governors Hassan Joho (Mombasa), John Lonyangapuo (West Pokot) Fahim Twaha (Lamu) and Turkana Deputy Governor Peter Lotethiro all called for a share of the revenue that will be accrued from oil exports.

"In our culture, when we slaughter a goat for guests, the hosts usually remain with the legs. We are asking for the goat's leg," said Lotethiro.

Lonyangapuo said because his county will provide the much-needed water for the oil production process, they deserve at least the 'goat ribs'.

Joho said Mombasa residents will make do with the neck because the oil will be exported through the Mombasa port.

However, Uhuru said just like the Mombasa port, oil in Turkana is a national asset whose proceeds will have to be shared equitably amongst all Kenyans.

"We will ensure that the local communities are major beneficiaries of the oil," said Uhuru.

Revenue from oil will be shared on the basis of 75 per cent for all Kenyans through the National Government, 20 per cent to the Turkana county government and five per cent will go to the local community.

 

Mining and Petroleum CS John Munyes said it took 1,800 truckloads of crude oil to transport the 200,000 barrels from Turkana to Mombasa, a distance of about 1,000km.

He said there was need to discuss with the seven counties through which the planned construction of the pipeline that will transport crude oil from Lokichar to Lamu to provide required land for the project.

“By 2020, we should have plans to make us proceed with construction of the pipeline from Lokichar to Lamu,” said Munyes.

Uhuru said his administration is keen to ensure sustainable development of the Project Oil Kenya, so as to maximise the potential without compromising the future of the next generation.

The President also officially saw off another batch of 119 Kenyan seafarers who were recruited by the Mediterranean Shipping Company to various cruise ships.

The 119 were part of a total of 275 Kenyans already recruited by the shipping line, which in July signed an MoU with the Transport ministry for the revival of Kenya National Shipping Line.

Uhuru said the deal between the KNSL and the MSC will see the national shipping line access over 500 ports across the globe, thereby creating the much needed potential markets for the oil produced in Kenya.

“This deal will create more than 50,000 job for our youth,” said the President.