Opinion: Ensure Oil Revelation Blessing for Kenya

Image result for oil drilling kenyaThe likelihood of Kenya extracting and exporting oil by June next year is exciting. It indicates that years of exploration by British oil firm Tullow Oil were not in vain. Commercial oil exploitation could come in handy for the East African state since it’s bound to boost the economy and negate over-reliance on agriculture, a domain that has been plagued by fluctuations in weather conditions and global prices. Besides that, oil serves as a strong accelerator of the manufacturing domain since it decreases production costs.
Nonetheless, there is every reason to be nervous. Exploitation of natural resources particularly in developing nations has proved to be a stumbling block due to corruption, conflict and poverty issues. Nigeria, Sudan and Liberia serve as perfect examples of poor resource utilization. Economists too have mentioned the risks involved with over-dependence in natural resources. Therefore a number of policy framework concepts are requisite to ensure maximum benefits of the oil find. They include: proposals to insulate the state from explorer/exporter predation, provision of adequate infrastructure to ensure processing, transportation, marketing; implementation of strategies that ensure oil wealth translates to improved livelihood of citizens, plus assists the local community in developing skills and in turn benefiting from the resource.

http://www.nation.co.ke/news/Kenya-at-risk-of-losing-tax-billions-from-oil-in-tax-havens/1056-3216270-7807ffz/index.html

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