Ministry calls for investment, innovation and policy alignment for the oil sub-sector
By Joyce Lutomia (PCO)
The Cabinet Secretary for Energy and Petroleum Opiyo Wandayi has called for sustained investment, policy alignment and innovation to accelerate growth of the oil sub-sector.
Wandayi, who spoke in Nairobi during a validation workshop for the Draft National Petroleum Policy, said the rising demand for the sub-sector underscores the urgent need for sustained investment, policy alignment, and innovation.
“The sector’s growth calls for a robust, forward-looking policy framework to be provided by the Draft National Petroleum Policy,” he said.
This Draft Policy, Wandayi said, is inevitable given that the Section 5(1) of the Petroleum Act, 2019, allows the Ministry to formulate and periodically review the National Petroleum Policy.
"This policy, in our view, is both timely and urgent. I say this because even though the current Sessional Paper No. 4 of 2004 on Energy is foundational, it no longer responds effectively to the dynamic developments in the sub-sector.
Since the discovery of oil and gas in Kenya in 2012, the petroleum landscape has evolved significantly, presenting both opportunities and challenges, the CS noted.
He said it is imperative that "we adopt a modern, robust, and coherent policy to guide the sustainable development and management of petroleum resources in our country".
The draft policy, Wandayi said, has been crafted to address emerging issues in the sector while aligning with Kenya’s broader national development agenda.
The policy is anchored on the Bottom-Up Economic Transformation Agenda (BETA) which emphasizes inclusive growth, poverty reduction, and empowerment of the ordinary Kenyan, he said.
If well harnessed, petroleum resources can be an enabler in the realization of BETA’s five pillars of Agriculture; Micro, Small, and Medium Enterprises (MSMEs); Affordable Housing; Universal Healthcare; and the Digital and Creative Economy, the CS said.
He added that the policy also aligns with Vision 2030 and highlights Kenya's commitment to Sustainable Development Goal 7 – ensuring access to affordable, reliable, sustainable, and modern energy for all.
It outlines a clear and predictable roadmap for the exploration, development, and utilisation of petroleum resources besides focusing on key priority areas including responsible exploration and production, expansion of petroleum storage and distribution infrastructure, increased uptake of Liquefied Petroleum Gas (LPG), security of supply, and the promotion of local content and value addition.
The policy, the Cabinet Secretary added, also places strong emphasis on good governance, transparency, equitable revenue sharing, environmental sustainability, and stakeholder engagement.
"As we move towards finalising this policy. I emphasize the importance of collaborative implementation. While the government will provide leadership and coordination, successful execution will depend on the active participation and partnership of all stakeholders – both public and private," said the CS.
"It is therefore my humble plea that we approach the process of this policy with a shared sense of purpose and commitment.
“We should ensure that the final document reflects our collective vision and provides a firm foundation for a petroleum sector that contributes meaningfully to Kenya’s economic transformation,” The CS declared.
Speaking during the occasion, the Principal Secretary for Petroleum, Mohamed Liban said the Draft National Petroleum Policy is a result of various engagements and consultations with the public and private sectors and government institutions.
The development of the Petroleum Policy, the PS said commenced in October 2023, with the establishment of a multi-agency technical working committee that was tasked to spearhead the finalization of a draft policy developed in the year 2021, with the support of the World Bank.
The Petroleum Policy, the PS said, focuses on promotion of Kenya’s petroleum potential with a view of attracting investment to discover, develop, produce and commercialize the petroleum resources.