Kenya's Extractive Industries: Oil, Gas, and the Turkana County Discovery

The discovery of over 560 million barrels of recoverable oil in Turkana County in 2012 positioned Kenya as a potential oil-producing nation, while the country's mining sector — generating KES 35.23 billion in mineral production revenue in 2022 — continues to expand across titanium, soda ash, and other strategic minerals. With Gulf Energy committing USD 6 billion to the Turkana oil project and first commercial production targeted for December 2026, Kenya's extractive industries stand at a transformative moment that could reshape the national economy.

Oil and Gas: The Turkana Discovery

Kenya's petroleum story began in earnest in March 2012, when Tullow Oil PLC announced the discovery of crude oil in the South Lokichar Basin of Turkana County. Subsequent appraisal drilling confirmed approximately 463 million barrels of contingent resources as of December 2024, with the broader basin holding potentially higher reserves. The discovery was celebrated as a milestone that could transform both Turkana — one of Kenya's most marginalised counties — and the national economy.

However, progress from discovery to production proved challenging. Over a decade of delays was caused by infrastructure gaps, community disputes, fluctuating global oil prices, and complex negotiations between the government, oil companies, and local communities. An Early Oil Pilot Scheme in 2018 trucked small quantities of crude to Mombasa for export, but large-scale commercial production remained elusive.

A pivotal shift came in 2024 when Tullow Oil agreed to sell its entire Kenyan portfolio to Gulf Energy Ltd for a minimum consideration of USD 120 million. Gulf Energy Chairman Francis Njogu described the undertaking as the single most significant private-sector-driven upstream petroleum investment in Kenya's history. In November 2025, the Kenyan government approved the South Lokichar Basin Field Development Plan (FDP) — the first time an FDP has advanced to this level — signalling Kenya's transition from exploration to development.

The plan targets production capacity of between 60,000 and 100,000 barrels per day, with first oil export tentatively scheduled for December 2026. The proposed Lokichar–Lamu Crude Oil Pipeline (LLCOP), stretching approximately 820 kilometres from Turkana to a marine export terminal in Lamu County, remains a critical infrastructure requirement. At least 24 companies are presently involved in onshore and offshore exploration across Kenya.

Revenue Sharing and Community Concerns

The Petroleum Act 2019 established a revenue-sharing framework allocating oil and gas revenues as follows: 75 per cent to the national government, 20 per cent to the county government, and 5 per cent to the local community. However, Turkana County leaders and community groups have argued for a larger share, citing the environmental and social impacts of extraction on pastoral livelihoods.

Community concerns include potential displacement from ancestral lands, environmental degradation of fragile arid ecosystems, water contamination risks in an already water-scarce region, and the disruption of pastoralist migration routes. The Institute for Promotion of Rights has documented cases where community consultation requirements under the Constitution and mining legislation have not been adequately met, highlighting the tension between national development ambitions and local rights.

Mining: Titanium, Soda Ash, and Strategic Minerals

While oil has attracted the most attention, Kenya's mining sector contributes significantly to the economy. In 2022, mineral production generated KES 35.23 billion (approximately USD 272 million), with titanium ore minerals accounting for 80 per cent of revenue. The Kenya Chamber of Mines estimates that annual revenues from mining could reach USD 3 billion when the sector is fully developed.

Titanium Mining: Base Titanium's heavy mineral sands operation in Kwale County, commissioned in 2013, is Kenya's largest mining project. The mine produces approximately 90,000 tonnes per year of rutile, 460,000 tonnes per year of ilmenite, and 35,000 tonnes per year of zircon. These minerals are essential for manufacturing paint, ceramics, aerospace components, and medical implants. However, the Kwale mine is approaching depletion, and Base Resources has been exploring new deposits to sustain operations.

Soda Ash: Kenya is the third largest producer of soda ash globally, with Tata Chemicals' operation at Lake Magadi in Kajiado County being one of the world's largest natural soda ash producers. Soda ash is used in glass manufacturing, detergents, and chemical processes. The Magadi operation has been running for over a century, providing employment and economic activity in the surrounding area.

Fluorspar: Kenya was previously producing about 150,000 tonnes per year of fluorspar from the Kimwarer mine in Elgeyo Marakwet County, making it the seventh largest producer globally. Production has ceased, but in February 2024, a KES 5 billion agreement was signed with the UK's Soy-Fujax Mining Company to restart fluorspar mining. Fluorspar is a critical mineral used in aluminium smelting, steel production, and the manufacture of refrigerants.

Other Minerals: Kenya also produces gemstones (including tsavorite garnet, ruby, and sapphire from Taita-Taveta and Kitui counties), gold (primarily artisanal mining in Migori and Kakamega counties), limestone and cement raw materials, diatomite, and various construction minerals. Exploration for niobium, rare earth elements, and coal is ongoing in several counties.

Legal and Regulatory Framework

Kenya's extractive sector is governed by the Mining Act 2016 and the Petroleum Act 2019, both of which were developed to align with the 2010 Constitution's provisions on natural resource management. The Mining Act 2016 established the licensing framework, royalty rates, and environmental requirements for mineral extraction. Royalty rates vary by mineral: 10 per cent for diamonds, 8 per cent for metallic ores, 5 per cent for gemstones, and 3–5 per cent for industrial minerals.

Kenya joined the Extractive Industries Transparency Initiative (EITI) to promote transparency in revenue management from oil, gas, and mining. The National Mining Corporation, established under the Mining Act, manages government participation in mining ventures and promotes investment in the sector.

Challenges and Future Prospects

Kenya's extractive sector faces several challenges including inadequate geological data mapping, community opposition driven by environmental concerns and revenue-sharing disputes, infrastructure deficits in remote mining and oil production areas, and the need to balance extraction with environmental conservation in ecologically sensitive zones.

However, the sector's potential is substantial. With the Turkana oil project moving towards commercial production, ongoing mineral exploration across multiple counties, and growing global demand for critical minerals used in renewable energy technologies, Kenya's extractive industries could become a major economic driver. Success will depend on transparent governance, equitable benefit-sharing with host communities, environmental stewardship, and strategic investment in processing and value addition rather than raw material export alone.