The loans to be advanced would be invested in developing measures to generate more private investment, promote efficient production, and increased government revenues.
The World Bank will disburse Sh4.4 billion ($50 million) to finance Kenya’s oil and gas industry. The money approved by the World Bank’s board of executive directors last week will, among other things, finance the crafting of laws and training of officials to manage the new sector transparently.
Specifically, the loans to be advanced under the Kenya Petroleum Technical Assistance Project would be invested in developing measures to generate more private investment, promote efficient production, and increased government revenues.
“The government of Kenya acknowledges that the development of a successful petroleum sector is never about petroleum alone, but also about managing its impacts for sustainable development,” said World Bank country director for Kenya Diarietou Gaye.
She said the bank supports government efforts to streamline the sector to increase efficiency in policy formation and the private sector’s participation in the exercise. She noted that successful implementation of the project would pave the way for economic growth and contribute to poverty reduction and shared prosperity.
To ensure transparency and good governance in oil contracts and revenue, World Bank is calling for collaboration between the national and county governments hosting petroleum resources. The Bank has also called for the participation of civil society organisations, private sector and local communities in these areas.
The World Bank project is intended to elevate petroleum activities to contribute to tax and export revenues. It is also expected to support entrepreneurial activities by improving the investment climate for the private sector and enhancing the oil and gas legal and institutional framework.
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