Kenya’s long-delayed dream of becoming an oil producer is a step closer to reality, with Parliament set to ratify the extraction of oil and gas in Turkana by Gulf Energy E&P B.V., paving the way for the country’s first commercial production phase.
Energy and Petroleum Cabinet Secretary Opiyo Wandayi confirmed that his ministry has approved the Field Development Plan (FDP) for the project, marking a significant milestone toward the commercialization of Kenya’s petroleum resources.
“In accordance with Section 10(j) of the Petroleum Act, 2019, I have approved the Field Development Plan for the Turkana oil project presented by Gulf Energy E&P B.V. I will now proceed within 30 days to present the FDP to Parliament for ratification, under Article 71 of the Constitution,” said CS Wandayi.
The move follows Tullow Oil Plc’s exit from Kenya after selling its entire working interest to Auron Energy E&P Limited, an affiliate of Gulf Energy Ltd. The sale, finalized in July 2025, closed a turbulent chapter for Tullow, which had struggled for years to bring the Turkana oil project to fruition.
Tullow confirmed receiving the first payment of US $40M under the sale agreement while two additional payments of US $40M each are due in 2026 and 2028. The firm said the proceeds would strengthen its balance sheet, while it retains royalty rights and a no-cost back-in option for a 30% participation in future phases.
The parliamentary ratification will be a decisive step in reviving Kenya’s oil ambitions, which have faced years of delays over financing, ownership, and logistical hurdles. Gulf Energy’s entry is expected to unlock new investment and accelerate field development, positioning Turkana as a key contributor to Kenya’s energy and export portfolio.
Gulf Energy plans to commence production from the South Lokichar Basin by the end of 2026, nearly 15 years after Tullow’s initial discovery. The South Lokichar project is estimated to hold 560 million barrels of recoverable oil, with early output expected between 60,000 and 100,000 barrels per day. While a proposed 895-kilometre export pipeline to Lamu remains part of the long-term plan, initial shipments could again be trucked to Mombasa, echoing Tullow’s pilot exports in 2019.
The transition from a debt-laden multinational to a domestic operator gives Kenya what analysts describe as a “second chance” to establish itself as a regional oil producer. The government has also introduced tax incentives and launched a new licensing round for 10 exploration blocks to attract additional investment.
If Gulf Energy stays on schedule, Kenya could soon join Uganda and South Sudan among East Africa’s oil-producing nations turning a once-stalled venture into a test of Kenya’s homegrown energy ambition.
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Turning to PPPs to boost power, infrastructure expansion
The government has also announced plans to leverage public-private partnerships (PPPs) to triple the country’s electricity generation capacity to 10,000 megawatts (MW) by 2032, while expanding infrastructure and irrigation projects.
President William Ruto said the partnerships will be vital in mobilizing private capital for power generation, modern infrastructure, and agricultural development.
“Our talks focused on deepening investment partnerships in infrastructure and energy, including projects to expand Kenya’s energy generation capacity to 10,000 megawatts in the next seven years. We are committed to strengthening our bilateral relations with the UAE through enhanced trade, investment, and economic cooperation under the Comprehensive Economic Partnership Agreement (CEPA),” President Ruto said after a meeting with a United Arab Emirates (UAE) delegation in Nairobi..
The initiative includes the construction of 50 mega dams under PPP frameworks to improve irrigation and food production. During his recent visit to Qatar, the President identified limited power supply as one of the key barriers to attracting foreign direct investment, especially for data center projects that require up to 10,000 MW of stable electricity.
Kenya’s installed capacity currently stands at 3,192 MW, according to data from the Energy and Petroleum Regulatory Authority (EPRA). However, transmission and distribution losses averaged 23.36 percent in the year to June 2025, meaning nearly one in four units of electricity generated does not reach consumers.
The government says addressing these losses and expanding capacity will be crucial for sustaining industrial growth. The new PPP model is expected to fund new power plants and modernize the national transmission grid, boosting efficiency and reliability.
In November 2024, Kenya had already signaled plans to seek alternative financing for its aging power infrastructure following the cancellation of a Kenya Electricity Transmission Company (KETRACO) project with India’s Adani Solutions.
