Turkana Oil Deal: Cost-Recovery Concerns and Parliament’s 2026 Decision
Machakos County, Kenya — February 9, 2026 | Updated October 9, 2026
During parliamentary scrutiny of Kenya’s South Lokichar oil development plan and production-sharing contracts, oil-sector witnesses raised concerns about cost recovery, independent audits, transport and local oversight. The proposed project covers fields in Turkana County and involves Gulf Energy.
Concerns raised during scrutiny
Witnesses questioned the proposed 85% cost-recovery ceiling, which allows the contractor to recover eligible project costs from production before the remaining profit oil is shared. They called for stronger independent cost and volume audits, clearer local-content reporting, and more oversight of environmental and safety obligations.
They also raised practical questions about moving crude by road from Turkana, including the consequences of relying on a large truck fleet. These were submissions and concerns put to lawmakers; they should not be read as findings that costs were inflated or that the project had breached any rule.
What Parliament later decided
The National Assembly approved ratification of the Field Development Plan and production-sharing contracts for Blocks T6 and T7 on February 25, 2026. The Ministry of Energy and Petroleum’s current project page says Parliament ratified the plan and contracts. Ratification moved the project beyond the review stage, but it did not make the witnesses’ questions about cost transparency or local benefits irrelevant.
In October 2026, the Kenya News Agency reported EPRA’s expectation that first production would begin in December 2026 and first exports would follow in the first quarter of 2027. These are project targets, not completed milestones; readers should check later regulator updates for actual progress.
What to watch
The practical tests are whether production and export targets are met, how eligible recoverable costs are audited, what information is published about output and revenue distribution, and whether affected communities receive the promised safeguards and benefits. The February parliamentary debate records the decision and the government’s projections; those projections are not guaranteed outcomes.
