Oil Exploration in Kenya: a Critical Assessment of the Sharing of Petroleum Resource Revenue.

Abstract

Africa has vast minerals like copper, oil, gold and diamonds. The presence of these resources in a given country is an indication that the country’s economic development will be boosted. However, this is not always the case as evidence has shown that many countries endowed with rich natural resources face several challenges leading to growth loss in the country. This is due to increased violence, human rights violation and distortion of the economy. The reduction of growth in countries with natural resources has led to a phenomenon called the “resource curse”. This phenomenon entails that countries with large deposits of resource wealth often face more economic, social and political problems than they benefit from their natural boom. The political conflicts experienced in the Democratic Republic of Congo (DRC) and the Biafra War in Nigeria are all political turbulences that have occurred as a result of the rich natural resources found in these countries. J Osongo Ambani refutes claims that the presence of natural resources in an African country leads to the deterioration of socio-economic and political institutions. According to him, that is to miss the point1 and that it is the failed leadership and governance institutions which are responsible for the ‘resource curse’2. This paper, therefore, seeks to critically assess the legal framework put in place for the sharing of petroleum resource revenue. The paper argues that equitable sharing of natural resource benefits is integral to growth and development of the Kenyan society. In our instant case, Turkana County and its locals will be used as a study case. The paper will also discuss how to address the ‘resource curse’ by looking at the practices of countries which are better developed in extractives and then conclude by offering recommendations that Kenya can incorporate to do better.