Continental Focus, International Reach

US to Aid Kenya with Pipeline

Thursday, January 7, 2016

The US has expressed an interest in providing funding for Kenya’s pipeline linking the Tullow and Africa Oil’s oilfields in northern Kenya to Lamu. The pipeline was initially designed and planned to be funded by Chinese, however the US said it is ready to invest in the estimated Sh2.4 trillion in the project.

Robert Godec, the US Ambassador to Kenya, said his government would help secure funding to a tune of around Sh1.4 trillion towards the oil pipeline and power generation projects. Godec said US is also interested in funding expansion of electricity generation capacity and distribution which will help fast-track realization of ongoing power projects to meet growing demand.

Between Kenya and neighboring Uganda the region has an estimated 1.35 billion barrels of recoverable oil located out of reach of current infrastructure; new infrastructure, including an export pipeline, is required to enable commercialization of these discoveries.

For Kenya, “Commercially viable oil reserves were discovered in 2012 but to date nothing has happened which makes Kenyans wonder what happened. We are confident that the PowerAfrica initiative will help us realize our pledge to Kenyans,” said newly appointed Energy Cabinet Secretary Alfred Keter adding that extra funds will also be sourced through the Export-Import Bank.

Keter said a technical team comprising Energy ministry experts and the American government’s PowerAfrica initiative side will work out details of the pipeline and electricity generation ventures.


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