The bank approved 50 million US dollars for the Kenyan government to help the country with the distribution of its revenues to create a sustainable growth across all areas of the nation’s economy.
“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. The World Bank supports the government’s efforts to streamline the petroleum sector to increase efficiency of decision-making related to policy formation, planning, investments, and private sector participation,” Diarietou Gaye, the World Bank’s Country Director for Kenya said.
This grant will see the East African country address challenges in the sector like uncertain regulatory framework, corruption and poor physical infrastructure. The bank is seeking to boost efficient production, manage the impacts, allocate higher government oil and gas revenues for development priorities, among others.
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Kenya's oil and gas discoveries have already registered an impressive record of a 60 per cent success rate. Nine out of 15 were discovery wells. The government is shelving proposals to have local content inclusions into the country’s energy and mining bill by coming up with a legislation on local content before August 2015.
However, according to a recent report by, PwC on Africa Oil and Gas, delays in passing the Mining Bill, and the resulting regulatory uncertainty, could see the country lose billions of shillings in lost investment.
Kenya's oil and gas industry is nascent, and the World Bank’s International Development Association, which helps poor countries by giving zero-interest loans and grants, will assist the Kenya Petroleum Technical Assistance Project (KEPTAP) focus on development measures to attract more private investment in the country’s oil and gas sector.
(READ MORE: Kenya's oil and gas sector shows impressive performance)
Alexander Huurdeman, the World Bank Task Team Leader for the project said, “We are excited for its implementation and the potential to create sustainable impacts for Kenya, including the development of a petroleum industry, improved transport infrastructure, expanded power supply, job creation, and positive economic benefits from strategic investment of the revenues generated.”