Government also advances petroleum reforms, cheaper LPG and coal exploration in Kitui
By John Kariuki
The Government has reaffirmed that first oil from the South Lokichar Basin remains on course for December 2026, as it pushes petroleum reforms and wider access to clean cooking fuel.
Mohamed Birik, Secretary for Administration at the Ministry of Petroleum, said that initial output is projected at about 20,000 barrels a day, rising to 50,000 in later phases. He spoke on behalf of Principal Secretary Kello Harsama of the State Department of Petroleum.
Birik described the project as a major milestone in unlocking the value of Kenya’s petroleum resources, strengthening energy security and creating economic opportunities.
South Lokichar lies in Turkana County in northern Kenya. The December target leaves roughly three months to first oil.
The Government is working with the Energy and Petroleum Regulatory Authority (EPRA) to create a stable and predictable investment climate, Birik said. EPRA has completed public participation on seven draft regulations intended to improve governance in the industry.
The drafts cover land access, cost management, crude oil and natural gas pipeline operations, storage management, local content, and environmental, health and safety requirements.
Birik said the Government continues to make progress in commercialising the country’s petroleum resources and reducing reliance on imported petroleum products.
On household energy, he said the removal of Value Added Tax on liquefied petroleum gas (LPG) has helped lower retail prices by allowing suppliers to recover costs more efficiently.
Under the GasYetu Clean Cooking Programme, subsidised six-kilogramme LPG starter kits, each with a pre-filled cylinder, burner and grill, are being distributed to low-income households for KSh1,500. The same package would cost about KSh5,500 on the open market, he said.
The KSh1,500 kit price is roughly 27 per cent of its open-market cost, according to the figures Birik cited.
Through the National LPG Growth Strategy, the Government is also installing bulk LPG systems in more than 11,000 public boarding schools and technical and vocational training institutions. The programme is expected to cut reliance on firewood and charcoal and widen access to cleaner, safer and more efficient energy.
Together, the measures span the sector from upstream production and regulation to the price of fuel in the household kitchen.
Birik said Kenya must plan for rising demand for reliable, affordable energy as its economy grows, particularly from manufacturing and heavy industry. The Government is therefore studying local resources, including coal deposits in the Mui Basin in Kitui County, to support industrial development and reduce dependence on imported coal.
He called for continued collaboration among stakeholders to build a resilient, competitive and sustainable energy sector able to support industry and secure the country’s energy future.
Whether the December oil date holds will be the first real test of the Government’s public promises on petroleum commercialisation.
