Give locals slice of lucrative extractive business, Deputy President Ruto says

Deputy President William Ruto has asked international oil companies (IOCs) to consider raising capital in the local stock market to give Kenyans a stake in the local oil, gas and mining sectors.

Speaking in Nairobi during the second edition of the annual Oil and Energy Services Local Content Convention, Ruto observed that local participation was not limited to employment and supply of goods and services but also making locals worthy partners in the extractive business.

"We must find the equilibrium between profits to investors and benefits to the community," said the Deputy President.

He said the oil, gas and mining sectors have the potential to drive the next phase of Kenya's economic growth, but this can only happen if locals are not bystanders in the process. He observed that experiences from other resource-rich countries in Africa showed that there were significant revenues to be generated in the exploitation of natural resources.

The DP, however, regretted that many mineral-rich African countries have had a difficult history characterised by conflict, serious environmental concerns and limited economic benefits accruing to citizens. He called for a holistic policy on local content covering the entire spectrum of the economy so that legislation and regulations can be properly targeted.

"We believe that if we undertake legal and regulatory reform, make necessary investments in infrastructure, technology, and skills development, there can be significant gains in the economic development of our country Kenya and the East Africa region at large," said the Deputy President.

Oil curse

"Our region can learn from the experiences of others and hence re-write the African story on resource management," reckoned the DP.

The East African region has in recent years reported the existence of commercially viable deposits of some of the world's most precious minerals and mineral oils. Tanzania boasts of about 55 trillion cubic feet (tcf) of natural gas reserves, while Uganda has several billion barrels of oil reserves. Kenya, on the other hand has discovered deposits of minerals in the coastal region, where titanium production is ongoing. It has also reported the discovery of commercially viable oil deposits.

Ruto said that the Government was developing strategies and regulations to ensure the Kenyans  benefited from the local extractive industry across the entire value chain.

He said the Government is committed to delivering a stable policy, legal and regulatory framework for oil and gas and mining sectors. He also alluded to an extensive capacity building program in place for several government ministries that will allow them to serve all stakeholders and perform their duties better.

Speaking at the same meeting, Oil and Energy Services CEO Mwendia Nyaga, called on stakeholders to manage the high expectations around the discovery of oil and gas. This, he said, could help mitigate conflict and disillusionment.