In Kenya, the results of the presidential elections are strongly contested. Raila Odinga, the opponent of the winner William Ruto, insists that the results are flawed and wants to legally challenge them.
This protest plunges the country into a certain political instability. However, this has an impact on the country’s energy projects, especially the oil industry.
Kenya wants to exploit its oil
Three energy groups, Tullow Oil, Canada’s Africa Oil and TotalEnergies, are currently in the final stages of investment for the development of several oil fields. These fields are located in the Turkana region in the northwest of the country. Once operational, they should produce 120,000 b/d.
In addition to the companies mentioned, Kenya is attracting India. In fact, two Indian companies (ONGC Videsh and IOC) have already positioned themselves. They will be among the first buyers of this oil from Kenya.
The oil produced will be transported via a pipeline to the port of Lamu. The export of this new oil will be one of the biggest projects passing through Lamu.
Political instability threatens the project
Despite the progress made on this oil project, the current political situation could weaken Kenya’s energy ambitions. Prior to his election, Ruto was vice president of Kenya. Thus, he participated in the negotiations around the Turkana project.
Ruto’s victory is being challenged by Odinga. Thus, this uncertainty hinders energy projects like this one. In addition, the country is experiencing some difficulties. Kenya faces inflation. Thus, the economic issue was at the center of the last elections.
The oil project could allow Kenya to recover its economy, especially in the current context. The IEA is raising its forecast for global oil demand.