The oil discovery in Turkana is expected to accelerate national development, President Kibaki said on Wednesday
Speaking after the swearing in of new Cabinet ministers in Nairobi, the Head of State said the future was bright.
Prospecting investors from all over the world, he said, were keen to establish ventures in Kenya.
“We recently discovered oil. This is a good development. It will help supplement our development efforts,” the President said.
And Gichugu MP Martha Karua called for prudent management of natural resources as it emerged that a Cabinet minister sold the block where oil was found in Turkana for a fortune.
On Wednesday, the managing director of Tullow Oil, Mr Martin Mbugua, said Block 10BB was co-owned by Tullow Oil and Africa Oil on a 50:50 basis.
He declined to give details of how the company acquired the block, referring queries to the Energy ministry.
“Before such equity changes hands, the minister of Energy has to give consent. The ministry keeps track of who was initially awarded the contract,” said Mr Mbugua.
Ms Karua said lack of transparency in management of natural resources had led to conflicts in Africa.
Speaking at Narc Kenya headquarters on Wednesday, Ms Karua said oil contracts should be scrutinised.
“We must have a transparent system to manage the resource and its revenue,” she said.
The Extractive Industry Transparency Initiative (EITI) has stipulated a set of principles as a guide to increased transparency and participation of the public in such matters.
Ms Karua urged the government to join EITI at this very early stage, saying with poor governance oil could result in conflicts.
She said the Constitution gave the people the right to take part in all matters that affect their welfare.
“Parliament must take up its role and demand scrutiny of oil transactions and contracts to ensure that they are in accordance with our laws and international standards.”
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