Gaddafi era is over, it’s time to move on on Kenyan oil

It is ridiculous that the Government has taken so long to cut off its trade ties with the former Libyan regime.

News that it plans to kick Libyan firm Tamoil East Africa out of one of the region’s biggest joint projects comes as no surprise.

In 2008, Tamoil beat Chinese firms to win the contract that would have seen it build a 354-kilometre pipeline from Eldoret to Kampala.

However the costs of the contract have been soaring ever since and have already hit the Sh600 billion mark.

At the last count, Tamoil held 76 per cent of the Joint Co-ordinating Commission, the vehicle charged with building the pipeline.

Kenya’s stake is 13 per cent and Uganda’s 12.3 per cent.

With the fall of dictator Muammar Gaddafi, many of the state-owned firms he set up to extend his influence across the continent are close to imploding.

As reported elsewhere, the project has been delayed following the toppling of Gaddafi and the freezing of his assets.

According to the reports, Tamoil’s ability to meet its end of the bargain are in serious doubt after massive damage to its oil assets by Nato strikes during the Libyan Spring of popular dissent that toppled President Gaddafi.

The dictator’s shadow looms large over Kenya with memories of the bombing of the Norfolk hotel and the acquisition of the Grand Regency Hotel that forced Amos Kimunya out of cabinet.

Unnecessary alterations

Should Tamoil East Africa lose the contract, the Government must impress upon Uganda the need to open up the project to competitive bidding and avoid making unnecessary alterations to its design to ensure the cost is contained.

In fact, there is a growing suspicion that Uganda is no longer keen on the project after striking oil.

With Kenya having struck oil in Turkana, it is important that the Government starts on the right footing.