Kenya is on course to produce its first crude oil from the South Lokichar Basin in December 2026, with the first exports through the Port of Mombasa expected in the first quarter of 2027.
Energy and Petroleum Regulatory Authority (EPRA) Director of Petroleum and Gas Engineer Edward Kinyua said the contractor developing the oil fields was undertaking development works and remained within the timelines set out in the approved Field Development Plan.
Eng. Kinyua, who was speaking today, during a Kenya Editors Guild Media roundtable meeting, reaffirmed that the country remained on track to commence crude oil production by the end of the year, paving the way for Kenya’s first crude exports early next year.
“The first oil date has been set for December 2026, and we expect, as per the field development plan, that the first export of crude out of Mombasa will happen in Quarter 1 2027,” Kinyua said.
Eng. Kinyua explained that the regulator received the field development plan for Blocks T6 and T7 in the South Lokichar Basin from the contractor on September 30, 2025, which was assessed for technical and commercial viability, before being recommended to the Cabinet Secretary for approval.
The plan was subsequently approved and ratified by Parliament in February 2026, paving the way for the current development phase.
“We are currently basically monitoring the development works and can report that the contractor basically is within the timelines that they had given in the field development plan,” he said.
The development marks a major milestone in Kenya’s efforts to move from oil discoveries to commercial production and is expected to strengthen the country’s energy security and provide a new source of export earnings.
On petroleum supply, Eng. Kinyua said Kenya had so far avoided shortages despite volatility in global oil markets, particularly disruptions affecting major supply corridors in the Middle East.
He attributed the stability to planning and coordination between EPRA, the Ministry of Energy and Petroleum, and other government agencies and suppliers under the Government-to-Government petroleum importation arrangement.
Eng. Kinyua said the arrangement had enabled Kenya to secure relatively competitive freight and premium costs at a time when global diesel supplies remained constrained.
He said Kenya was also considering establishing strategic petroleum stocks to strengthen the country’s ability to withstand supply disruptions.
EPRA has developed regulations on strategic stocks, which are currently under review by the Attorney General. Once gazetted, the framework is expected to facilitate private investment in additional petroleum storage facilities, with Kenya retaining the first right to use the stored products during supply disruptions.
Under existing minimum operational stock regulations, petroleum marketers are required to maintain stocks equivalent to 25 days of diesel sales based on their previous 180-day sales, while super petrol requires 20 days of stock.
Eng Kinyua said strengthening storage capacity would complement the existing system and provide an additional buffer against global supply disruptions.
Acting EPRA Director General Engineer, Joseph Oketch, while officially opening the meeting to brief editors on developments in the petroleum and electricity sectors, said the regulator would continue providing oversight as the country prepares to move towards oil production, alongside efforts to strengthen security and reliability of petroleum supplies.
Oketch noted that EPRA was also working on electricity market reforms, including time-of-use tariffs and open-access regulations, while the Authority was addressing challenges affecting implementation of net-metering regulations.
He said the net-metering regulations had been gazetted and were already in force, although implementation had been slower than anticipated.
Net-metering is a billing mechanism that credits, for example, solar energy system owners for the electricity they add to the grid.
The South Lokichar Basin holds an estimated 453 million to 560 million barrels of crude oil, with development now advancing following approval of the Field Development Plan (FDP) under the Petroleum Act, 2019. Gulf Energy is spearheading the project, following its acquisition of assets previously held by the former developer.
Crude oil production is projected to start at about 20,000 barrels per day before scaling up to 120,000 barrels per day by 2032 as field development gathers pace.
The project also includes construction of an 825-kilometer crude oil pipeline linking the South Lokichar Basin in Turkana to the Port of Lamu, forming a key component of the estimated Sh793 billion investment backed by the government and private-sector investors.
By Wangari Ndirangu
