This archive report was first published on 26 August 2019.
The National Assembly has been demanding information on how funds provided by the World Bank were being spent, including the establishment of the Upstream Petroleum Regulatory Authority (UPRA), which is not backed by law.
However, Solicitor General Kennedy Ogeto has advised that supervision of crude oil operations be undertaken by the Energy and Petroleum Regulatory Authority (EPRA), which could determine how a Sh5 billion kitty is managed.
According to Ogeto, the Petroleum Act, which came into force on March 28, established EPRA's functions to include regulation of 'upstream operations', which include production, distribution, and revenue sharing.
EPRA's mandate under section 10 of the Energy Act should be exercised as set out under the Petroleum Act, Ogeto wrote in the July 10 advisory.
On the other hand, the Ministry of Petroleum and Mining has been of the opinion that it should manage the billions in the transition period through the WB-funded Kenya Petroleum Technical Assistance Project (Keptap).
However, the Petroleum Act established an advisory committee that would provide technical assistance to the Petroleum and Mining Cabinet Secretary on the monitoring and contracts in crude oil production.
Principal Secretary Andrew Kamau is at the center of the battle for pushing ahead with the proposed authority, which was shot down by MPs, specifically relating to the possible loss of public funds on an exercise in futility.
At the heart of the battle is why the American consultant was 'hurriedly' contracted to develop an institutional structure for an agency that is no longer envisaged, with its proposed functions given to EPRA.
