This archive report was first published on 26 November 2019.
Kenya's economy is facing a significant downturn, with the country's financial situation worsening despite earning 9 million euros from the sale of 240,000 barrels of oil produced at the Turkana oilfields in 2019.
According to the Kenya National Bureau of Statistics (KNBS), the country may be paying more than it earned to transport the oil to a terminal in Mombasa County for export, further exacerbating its economic woes.
Kenya's partner in the oil exploration, Tullow Oil, has invested over 1.8 billion euros in exploration operations alone, indicating that Kenyans will have to wait for a while longer before benefiting from the 'oil money'.
Although Kenya has earned its first billion shillings from oil exports, the milestone has been overshadowed by a cloud of economic gloom, with analysts warning that the country's mounting public debt and reduced savings among its workforce are major concerns.
As of September 2019, Kenya's public and publicly guaranteed stock of debt stood at Sh5.96 trillion, accounting for 63.9 percent of GDP, while the nominal GDP was Sh9.32 trillion as of June 2019.
However, Moses Ikiara, the executive director of the Kenya Investment Authority (Keninvest), remains optimistic that the windfall from oil sales will strengthen Kenya's development efforts.
Kenya Insights invites guest bloggers to share their insights and stories; if you have an expose, news, or human interest story, email us at [email protected] or via Telegram at @Kenya_West.
