What should be done to make oil a blessing, not curse for Kenyans

President Uhuru Kenyatta with Ship Captain and his crew during the Flagging-off Ceremony of the First Crude Oil Shipment at the Kipevu Oil Terminal, Mombasa County. [PSCU]

President Kenyatta flagged off Kenya’s first oil export last week. This came with very high expectations that Kenya would become the next Kuwait. The first shipment brought in Sh1.2 billion. Kenya has an estimated 750 million barrels of oil reserves. At current price of $60 per barrel, a daily production of 80,000 barrels translates to Sh500 million per day, or Sh182 billion per year.

To put that into perspective, the money can fund 100,000 social houses and create a revolving fund. This is not money that we were expecting or planned for, it’s a bonus. We can either go on holiday with the bonus or start serious investment with it. If we get it wrong, it will have disastrous consequences. If we get it right, it will benefit us for generations to come.