After Years of Delays, Kenya Targets First Oil Production by December 2026

Kenya is on course to begin its first commercial oil production by December 2026, as the country seeks to diversify its economy and reduce reliance on imports.

According to the latest biannual Energy and Petroleum Statistics Report from the Energy and Petroleum Regulatory Authority (EPRA), which highlights strong growth across Kenya’s energy sector in the first half of the 2025/2026 financial year, the government has already taken steps toward unlocking the country’s oil potential, including reviewing and advancing development plans for identified oil blocks in the Tertiary Rift Basin.

The report indicates that a Field Development Plan submitted by a Kenyan investor outlines the full development of six oil discoveries, alongside continued exploration to maximise resource recovery.

Kenya Targets First Oil Production by December 2026

The plan has since been reviewed by regulators and forwarded to Parliament for ratification, which signals progress toward commercialisation.

Energy sector officials say the expected start of oil production could open up new economic opportunities, particularly in northern Kenya, where the resources are located.

The project is also expected to spur infrastructure development, create jobs, and stimulate growth in related industries.

“Progress toward commercial oil production marks an important step in diversifying Kenya’s economic base and expanding opportunities for communities,” the report noted.

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Commercially viable oil was first discovered in 2012 in the Lokichar Basin in Turkana by British firm Tullow Oil, which had raised hopes Kenya would soon join Africa’s oil-exporting nations.

The discovery gained worldwide attention and was seen as a potential economic change, with hopes for early production and export profits.

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However, progress slowed over the years due to several challenges. These included low global oil prices, a lack of infrastructure like a crude oil pipeline, investors leaving the project, and regulatory issues.

In 2019, Kenya started an Early Oil Pilot Scheme to transport small amounts of crude oil by road to Mombasa for export.

However, the project was not financially viable, and full-scale production did not happen.

Besides plans for Kenya’s first oil production, the report also shows that electricity use grew by 8.25%, with demand reaching a record 2,439 MW, while the number of customers rose to over 10.2 million. Electric vehicles and motorcycles saw the biggest increase, with power use jumping by more than 152%, showing a move towards cleaner transport.

At the same time, Kenya remained a leader in clean energy, with about 78.79% of its electricity coming from sources like geothermal, hydro, wind, and solar.

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