Sh900m lies unused in petroleum training fund

Auditor-General Edward Ouko
Auditor-General Edward Ouko. FILE PHOTO | NMG 

The Petroleum Ministry is on the spot for failing to use Sh943.9 million set aside as Training Levy Fund, an audit has shown.

Auditor-General Edward Ouko says the State department of Petroleum had accumulated Sh943,906,947 for training in a local bank account as at June 30, 2018.

“Therefore, contributions to Petroleum Levy Fund have not been utilised in the most effective way,” Mr Ouko said in an audit of the department.

The Exploration and Production Act provides for the establishment of the Petroleum Training Levy Fund for training Kenyans on petroleum operations.

Mr Ouko said examinations in 2016/17 and 2017/18 years revealed that Sh320,764,864 was used on training 55 staff drawn from the department.


While the staff were trained in financial and human resources management and oil exploration, some of the trainees had attended similar courses, he said.

“However, no trainees were drawn from university and colleges or other learning or research institutions and there is no indication that any support was provided by the department to these or other institutions well-placed to enhance knowledge and skills on petroleum operations among Kenyans,” Mr Ouko said.