Sh4.5 Billion Loss Casts Shadow Over Kenya’s Oil Pilot in Turkana

Concerns have emerged over Kenya’s oil journey after an audit report revealed that the Turkana Early Oil Pilot Scheme (EOPS) recorded a deficit of more than Ksh4.5 billion, despite successfully placing the country on the global crude oil map.

According to the report, Kenya earned about Ksh3.6 billion from crude oil sales under the pilot project, which was completed around 2020.

The scheme involved exporting oil from the South Lokichar fields in Turkana to test global market demand, pricing, and logistics. It was widely viewed as a critical first step toward commercial oil production.

However, the audit shows that the cost of running the project far exceeded the revenue earned. Total expenditure on drilling, storage, and transportation stood at approximately Ksh8.1 billion, resulting in a net loss estimated at Ksh4.5 billion.

While the government maintains that the deficit is classified as recoverable exploration expenditure, the figures have raised questions among lawmakers and the public about value for money and long-term benefits for taxpayers.

Energy and Petroleum Cabinet Secretary Opiyo Wandayi acknowledged the cost challenges but defended the project, saying the pilot scheme achieved its main goal.

“The project successfully proved that Kenya’s crude can compete on the world stage,” Wandayi said, noting that the exercise helped test “global market demand, pricing and logistics.”