World Bank gives Kenya Sh4.4b to manage oil, gas

The World Bank has approved $50 million (Sh4.35 billion) for Kenya to strengthen its capacity to manage the oil and gas sector.

With the recent discovery of oil, the International Development Association (IDA) credit for the Kenya Petroleum Technical Assistance Project (Keptap) will focus on development measures to generate more private investment in the country’s oil and gas industry.

This will boost more efficient production, manage the impacts, allocate higher government oil and gas revenues for development priorities. “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,” said Diarietou Gaye, the World Bank’s Country Director for Kenya.

“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,” Gaye said.

In order to help stimulate economic growth in Kenya, the project will promote petroleum activities to contribute to fiscal and foreign exchange revenues.

It will also support entrepreneurial activities by improving the investment climate for the private sector and enhancing the oil and gas legal and institutional framework.