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Article

6 Jul 2017

Author:
Vincent Achuka & Macharia Kamau, Standard Digital (Kenya)

Kenya: Dispute on percentage of oil revenue allocation to locals delaying oil production

“How Kenya could be digging itself into the 'oil curse'”

The decision by the Government to cancel for the second time the Early Oil Pilot Scheme (EOPS) on Thursday has left in its wake questions on whether Kenya's discovery of crude is turning out to be the curse of black gold. While Energy Cabinet Secretary Charles Keter put up a brave face blaming the last minute decision to pull the plug on lack of regulatory framework just hours before the massively publicized deadline, underneath were signs of brewing trouble…Below the surface, however, is a simmering wrangle between the State and the County Government of Turkana whose tell-tale signs began in March when President Uhuru Kenyatta publicly clashed with Governor Josephat Nanok…“Someone can dare stand here and accuse Uhuru of wanting someone’s oil revenue, I rebuke you, you devil,” the President said in Lodwar. And three weeks ago one company upgrading the road to Lodwar suspended works after three of their employees were attacked. Tullow has also protested that its employees cannot access its oil fields which have been invaded by ‘unknown people.’

Meanwhile, Turkana leadership has vowed no single barrel of oil will leave the fields unless their grievances are settled. “The reason given by the President about the percentage that Turkana (County) Government cannot absorb the funds is a big joke. It is actually a slap on our faces. The Jubilee leadership is not one that has the people’s interest at heart,” vowed County Executive in charge of Pastoral Economy and Fisheries, Lynus Nakiporo. “The Turkana people want 30 per cent of the oil revenue. That is 10 per cent to the community and 20 per cent to the county government. If President Uhuru Kenyatta does not sign it, all oil operations will be suspended.” The bone of contention? How to share the expected petro dollars. Turkana leadership has been pushing for a 10 percent of the revenue to go to the community while the government is pushing for 5 percent…[refers to Tullow Oil]