Newly Launched Kenya Oil Sector Development Model to Benefit 5 Counties

Kenya has really grown the exploration side of oil and gas industry, with new finds indicating a bright future for the industry and with the Baringo, Elgeyo Marakwet, Marsabit ,Turkana & West Pokot counties showing massive potential.

On 29th March 2017, the Kenya National Chamber of Commerce & Industry (KNCCI) and the Kenya Extractives Programme (K-Expro) launched the Working Policy Framework Towards Micro, Small & Medium-sized Enterprises (MSMEs) Development in Oil & Gas Counties and officially handed it over to the PS Ministry of Industry, Trade and Cooperative Betty Maina and the Council of Governors for implementation.

This framework which Kenya is seeking to ape from Angola & Chad, will assist the country come up with mechanisms that will assist small and medium-sized enterprises (SME’s) transform the short-term benefits of oil and gas sectors into long term development, industry stakeholders said during the launch.

The framework will provide a guideline to outlining the types of targeted policy interventions that the five identified County Governments namely: Baringo, Elgeyo Marakwet, Marsabit, Turkana and West Pokot can adopt to facilitate the development of MSMEs supporting the oil & gas sector. The framework hopes to unlock the MSMEs’ potential especially in these 5 mentioned counties.

“We are excited as government that as we develop the national local content framework the private sector has also developed a working policy framework that will help us improve our document. We expect that by the time our framework is concluded by the end of the year we will guide the way to ensure local players have more capacity, have access to information on opportunities in the sector and can get finance so as to participate in sectors with huge capital needed such as oil and gas,” said PS Ministry of trade and cooperatives Betty Maina.

“The framework will equip counties with the needed guidelines towards putting in place adequate policy, regulatory and governance structures to foster county-level MSME development within the emerging economic sectors especially oil and gas. Following the launch of this framework it is my hope that the national and county governments will provide the enabling environment needed for its implementation, ” said KNCCI chairman, Kiprono Kittony.

In this framework, techniques to facilitate flow of information on diverse ready-to-fill MSME gaps must be put in place by Counties.

The framework will prioritize on these four areas:

  • Establishment of enterprise centers; this is the first priority because kenya leans on Angola & Chad experiences, i.e. a minimum consensus must be initiated among stakeholders for an enterprise to establish & run.
  • Access to electricity is the second priority which can only follow after an enterprise is established and running.
  • Access to water
  • Access to telecommunications and computer services.

A workshop to engage relevant county-level stakeholders & professionals in Turkana will soon be held by KNCCI.

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Business Reporter at Urbwise. Areas of interest are business, politics, music and dogs.