French oil firm, Total SA has confirmed its commitment to the Lokichar to Lamu oil pipeline as the only evacuation route for Kenya’s crude from the Lokichar fields in Turkana county.
A statement from State House spokesperson Manoah Esipisu said President Uhuru Kenyatta secured this commitment when he met Momar Nguer, a member of Total’s Executive Committee and its president for marketing and services, at State House, Nairobi.
President Kenyatta welcomed this commitment, which will fasten the development of the resources for the benefit of the Kenyan people.
Mr Nguer expressed Total SA’s confidence in Kenya’s oil sector.
Following Total SA’s commitment, the Government has consented to a proposed acquisition of the issued and to-be-issued share capital of Maersk Oil Exploration International (Mogas Kenya) in respect of Blocks 10BA, 10BB and 13T.
“Kenya is optimistic that the entry of Total into the Kenya Joint Venture will strengthen the financial resources and technical competence to the Joint Venture and this will go a long way in accelerating the development of the resources in these blocks,” the statement said.
President Kenyatta said his administration would accord support to Mogas Kenya and Total SA, and indeed other private sector players that are keen to develop the country’s resources with the goal of delivering shared prosperity.
Meanwhile, President Kenyatta met a senior executive of the International Finance Corporation Tuesday and discussed support for the private sector in delivering his Big Four agenda.
President Kenyatta sought the active engagement of the IFC in securing cheap financing as well as lifting the capacity of the private sector so they could participate in large-scale projects.
IFC Vice President for Middle East and Africa Sergio Pimenta met President Kenyatta at State House.
The President’s Big Four is food security, affordable housing, manufacturing and affordable healthcare for all.
Mr Pimenta said the IFC, the World Bank’s private sector lending arm, was keen to partner with the government to deliver on an economic agenda focused on investment in the social sectors.
“We will be looking at how we can train small and medium entrepreneurs to enable them benefit from many tenders which are being availed in various sectors of the economy,” said Mr Pimenta.
“Specifically, our interest is in building the capacity of SMEs, including exploring discussions around mergers, so they can bid for projects on an equal footing with major companies from China or elsewhere.” He added.
President Kenyatta said he is focused to achieve his Big Four agenda, as well as a drive to put resources in social sectors.
“To achieve the Big Four we will require partnership with the private sector, so that they can take advantage of the good foundation we have laid over the past few years to deliver to ordinary citizens,” the president said.
“It requires that the private sector looks at its investment models, look at how they can support affordable housing, see how they can invest in agriculture so we can meet our food security and nutrition goals,” he said.
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“It requires that we look at how to further support SMEs so that they invests in manufacturing and agro-processing,” the President added.
But to reach these goals also requires that we continue to invest in education, and especially in skills development,” he added.
Mr Pimenta said the IFC would explore how to further support the private sector, especially with raising funds that could go to projects such as affordable housing. At present, for example, Kenya meets less than a tenth of mortgage lending demand due to cost issues.
