Treasury Sh10bn funding cut blights Kenya’s oil dream

The National Treasury cut Sh9.84 billion in funding for the South Lokichar Basin development, jeopardizing Kenya's goal of achieving first oil by December 2026. Acting Petroleum Principal Secretary Mohamed Birik said the cut puts seven major projects in limbo, including oil production in Lokichar (Sh5.52 billion) and the Lokichar-Lamu crude oil pipeline (Sh710 million). Kenya expects to start commercial production at 20,000 barrels per day by end-2026, but the funding withdrawal threatens this timeline.