Energy
From The Report: Kenya 2016
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An anticipated recovery in the upstream segment in 2017 could spur a new round of investment, and downstream demand is expected to continue rising, particularly as vehicle sales accelerate. While the forecast for 2015 is mixed, the industry’s long-term prospects remain bright, and the sector is likely to be a major economic engine over the next five years. The total volume of petroleum products imported in 2014 rose by 11.7% to 4.46m tonnes, with the petroleum import bill simultaneously increasing by 5.6% to reach KSh333.15bn ($3.7bn), while total domestic demand for petroleum products grew by 5.3% to hit 3.94m tonnes. Building on its sizeable reserves of soda ash, fluorspar and titanium oxide, among other resources, Kenya’s burgeoning mining sector is poised for significant long-term growth. The industry’s potential is thus helping to attract major investments in critical infrastructure.

This chapter contains interviews with Donald Mahaga, Chairman, Kenya Oil and Gas Association; and Tim Carstens, Managing Director, Base Resources.

Articles from this Chapter

Overview

A challenging year: The weaker oil price environment and new legislation are bringing changes to the sector
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Although it has significant potential for future development, Kenya’s nascent oil and gas industry is, like so many other markets, facing a number of challenges, both external and domestic, in 2015. An economic slowdown in China, weaker global oil prices, a depreciating shilling and proposed local content regulations have affected planned investments and domestic demand. As a result, the timeline for commercial production at newly discovered fields in the north-eastern Turkana region is being reconsidered,…

Interview

Developing capacity: OBG talks to Donald Mahaga, Chairman, Kenya Oil and Gas Association
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Interview: Donald Mahaga What are the largest challenges faced by producers in commercialising onshore finds in Kenya? DONALD MAHAGA: Although we are still quite a few years away from commercialisation in Kenya, in terms of further development we do face the challenge of coordinating the roles of various project stakeholders, including private companies, various levels of government and local communities. The government is still building experience at regulating the oil and gas sector. At…

Interview

Untapped resources: OBG talks to Tim Carstens, Managing Director, Base Resources
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Interview: Tim Carstens What specific measures could help improve the country’s attractiveness for mining operators? TIM CARSTENS: Kenya’s ranking in the highly regarded Fraser Report was clearly disappointing. Most alarming was the dramatic drop from the 2013 ranking of 79th, which unfortunately suggested a perception that Kenya is headed in the wrong direction. The key to improving investment attractiveness is the development of a clear mining policy that competitively positions Kenya to…

Analysis

Relaying the foundation: New exploration efforts and reformed legislation set the stage for future projects
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Building on its sizeable reserves of soda ash, fluorspar and titanium oxide, among other resources, Kenya’s burgeoning mining sector is poised for significant long-term growth. The industry’s potential is thus helping to draw in significant investments in its critical infrastructure. At the same time, the sector faces headwinds with the burden of depressed global commodities prices, along with a strict regulatory environment, which included proposals in 2014 by the newly established Ministry…