BUDGET REVIEW EXPOSES FUNDING GAPS FOR KEY TURKANA OIL ENABLERS

BUDGET REVIEW EXPOSES FUNDING GAPS FOR KEY TURKANA OIL ENABLERS 

Parliament Buildings, Thursday, 19th February, 2026..

The National Assembly’s Departmental Committee on Energy has concluded its review of the 2026 Budget Policy Statement for the State Department for Energy and the State Department for Petroleum, raising critical concerns over the government’s preparedness to deliver on Kenya’s ambitious First oil production target.
The session, chaired by Nakuru East legislator Hon. David Gikaria, focused on the financial allocations proposed for the upcoming fiscal year. Committee members expressed concern over the apparent lack of dedicated funding to support the planned commercial oil drilling project in Turkana County, a flagship government initiative expected to be operational before the end of 2026.
Hon. Gikaria described the Turkana oil project as one of the country’s largest and most strategic investment undertakings, emphasizing the urgent need for the government to put in place adequate enabling infrastructure to guarantee its success.
“The ministry has a duty to ensure there are sufficient resources to fast-track the implementation of key enabling facilities within the oil fields for the project to succeed,” he remarked.
Among the critical enablers identified is the provision of enhanced security within the oil blocks. Plans are underway for the construction of a police station in the region to safeguard drilling equipment, personnel, and the extracted crude. Lawmakers noted that without proper security arrangements, the project could face significant operational risks.
The committee also highlighted the need for funding toward the construction of a water pipeline from Turkwel Dam to Turkana. Water is essential in the drilling process, and the proposed pipeline is also expected to benefit surrounding communities by supplying water for domestic use and irrigation, thereby supporting local livelihoods.
Other key infrastructure requirements include the development of access roads, electricity connectivity, and additional support facilities necessary for smooth operations in the oil fields.
However, the 2026 Budget Policy Statements presented by the two state departments have not clearly provided allocations for these critical components, raising concerns over the government’s readiness to meet its target of producing Kenya’s first commercial oil by December 2026.
If successful, Kenya would join the ranks of oil-producing nations, with proceeds from crude oil exports expected to strengthen foreign exchange reserves and support the stability of the Kenyan shilling.