The government will start licensing firms keen on exploration and potential commercial investment on its 10 oil and gas blocks in September, the Energy and Petroleum Ministry has said.
In a renewed effort to encourage investments and development in the sector, it is offering tax incentives among other benefits.
Gas discoveries have previously been made in offshore Lamu Basin, Anza Basin (North Eastern Kenya) and Mbawa 1well (70 kms off the coast of Malindi), while Sunbird 1 well 9 (Lamu basin offshore) had both oil and gas discoveries.
However a decade down the line, no major investment has been made in these blocks. Only the Lokichar project in Turkana has made commercially viable discoveries but that too has faced challenges in progressing to the commercial phase.
Energy and Petroleum CS Opiyo Wandayi now says the country has restructured its petroleum exploration blocks to align with global best practices and its legal frameworks, hence ready for major investments.
The 10 blocs, Wandayi said, have been selected based on geoscientific data, with the first licensing round set for September.
“This presents a unique opportunity for investors to explore Kenya’s hydrocarbon potential through a transparent and merit-based process,” Wandayi said during the just concluded East African Petroleum Conference and Exhibition 2025 in Dar es Salaam, Tanzania.
To support informed decision-making, Kenya has compiled comprehensive geoscientific data, including seismic surveys, geological reports, and well data, all available at the National Data Centre hosted by the National Oil Corporation of Kenya, the CS affirmed.
He said the government is also investing in infrastructure to support oil and gas exploration and development in addition to a “ highly skilled” and growing workforce in the petroleum sector.
Key projects include the expansion of Lamu Port under the LAPSSET Corridor Programme and the improvement of road networks to facilitate logistics.
Additionally, the Lamu-Lokichar pipeline project is expected to ensure seamless transportation of petroleum products.
The Front End Engineering Design for the 852 km Lokichar-Lamu pipeline is already complete and the Environmental and Social Impact Assessment (ESIA) report submitted to NEMA for approval.
“The government will provide a stable legal framework, flexible Production Sharing Contract (PSC) terms and remains dedicated to the sustainable growth of the oil and gas sector,” he said.
Yesterday, Petroleum PS Mohamed Liban said the government will provide incentives to investors in oil and gas exploration to help Kenya maximise benefits from the sector.
“The government is strengthening the petroleum industry by ensuring that investments are well-supported through better policies and infrastructure,” he said.
