This archive report was first published on 19 August 2019.
Kenya's crude oil export to China has sparked mixed reactions, with the government emphasizing that the revenue from the sale will be used to cover expenses incurred during market testing.
According to Andrew Kamau, the Petroleum principal secretary, the government will use the $1.2 billion expected from the sale to cover the costs of setting up oil drilling machines, rehabilitating storage tanks, and transporting the crude oil.
Mr. Kamau explained that the Early Oil Pilot Scheme is a market test and not a commercial venture, and that the government will meet with local leaders in Turkana county to explain the implications of the sale.
However, critics argue that the government is playing with people's emotions and money, as the sale of the crude oil is expected to benefit the government and Tullow Oil, but not necessarily the local community.
The Petroleum Act 2019 provides for profit-sharing between the national government, county government, and local community, but the details of the profit-sharing arrangement are yet to be disclosed.
It has also been alleged that the government is using the crude oil sale to pay off China loans, but the government has declined to comment on this claim.
As the government continues to keep the details of the crude oil sale and profit-sharing arrangement under wraps, concerns are growing about the transparency and accountability of the project.
