Former Meru Governor Kiraitu Murungi
National Oil Corporation of Kenya Chairman Kiraitu Murungi has called on President William Ruto to divert investments in oil production.
Speaking on Monday, June 5 while addressing foreign delegates from nine countries attending the 8th African Petroleum Data Management Forum at the NOC headquarters in Nairobi, Kiraitu urged President Ruto to invest in the Lokichar basin in Turkana County.
According to Kiraitu, the government can collect close to Ksh1 trillion (USD8 billion) which would help President Ruto tackle the debt crisis in the country and lift millions of Kenyans out of poverty.
“Experts tell us that the Lokichar field asset is quantified at 472 million barrels recoverable. With the State’s carried interest of 22.5 percent share in the production sharing contract, the country stands to earn USD8 billion at the current rate of USD80 a barrel. We can do a lot with this kind of money,” Kiraitu said.
The former Meru Governor also revealed that the National Oil Corporation was developing a new framework to bring the government and other key investors on board.
“We cannot leave development and exploitation of the oil reserves in Lokichar to Tullow alone. As NOC we shall seek government support so that we can accelerate production and generate resources to pull our people out of debt and poverty,” he added.
The country’s debt, according to the Central Bank of Kenya, is Ksh9.182 trillion, getting closer to the Ksh10 trillion borrowing limit set by Parliament in June 2022.
President William Ruto’s Council of Economic Advisors Chairperson, David Ndii on April cautioned that the government was caught between paying debts and paying salaries.
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