Jeers and cheers as Uhuru, Nanok agree on oil revenue share plan

President Uhuru Kenyatta and governors Salim Mvurya (Kwale) and Josphat Nanok (Turkana) at Diani Reef Hotel, Kwale County, in December last year. [File, Standard]

The deal reached by President Uhuru Kenyatta and Turkana Governor Josphat Nanok on how to share revenues from crude oil has received divergent opinions from the local community.

While a number of leaders who had previously opposed the Early Oil Pilot Scheme (EOPS) now embrace it, others are wary and feel that the community was sold out and would be short-changed.

The agreement, which paves way for the movement of oil from Turkana to Mombasa under the pilot, will see the county government get 20 per cent of the revenues while the community will get five per cent. The national Government will keep 75 per cent of the oil revenues.

The formula on how to divide the anticipated petrodollars, which is similar to what is contained in the Petroleum Bill, has been the bone of contention and leaders from the county had been pushing for a larger share for the community. It is also the reason the oil export project has been delayed for close to a year.

Before reaching the deal at State House in Nairobi last week, the leaders, including Governor Nanok, had vowed not to allow the transportation unless the national Government upped the allocation to the county to 30 per cent (20 per cent to the county government and 10 per cent to the local community).

But after the meeting in State House, Nanok has softened his stance and is now urging residents to support the pilot transportation of oil.

The governor however says the national Government had agreed not to cap the revenues to the county. The Bill suggested the money from oil revenues should not exceed the annual budget for the county government.

“President Kenyatta told us that he would remove the capping clause on revenue if we agreed to have three per cent. We told him we wanted 7.5 per cent but we later agreed on five per cent,” Nanok says.

He says it is important for the locals to allow the transportation so that they start enjoying the benefits from oil once it reaches the market before the pipeline is constructed for full-scale production.

Petroleum and Mining Cabinet Secretary John Munyes says he would ensure the benefits from the production such as jobs and corporate social responsibility are reserved for the local community.

The remarks on benefits by Nanok and Munyes are despite the fact that the pilot is likely to be a loss-making venture, with the only probable benefit being lessons for the Government, Tullow Oil and its partners that will inform the commercial development.

Turkana politicians who have in the past been vocal against the Bill now say the pilot trucking should go on and the five per cent revenue share to the community is not so bad after all.

MPs James Lomenen (Turkana South) and Ali Lokiru (Turkana East) say they are content with the deal, adding that capping had been the major issue.

Some members of the community are however not happy with the deal, with a majority of them wondering how their leaders accepted it without their input.

“Our leaders must know that they serve the interests of the wananchi. They should always consult the community before they make such major decisions. How did they reach the five per cent agreement?” asks Ricardo Simeon, a rights activist.

Ekai Sam says: “It is now time for the community to stand up for their rights with or without leaders.”

Turkana Empowerment Advocacy Group activist John Baraka says the locals have more questions than answers on the agreement.

“There are mixed reactions over the agreement. The locals do not understand what happened. The leaders said they would fight for 10 per cent without capping but they went to State House and came back singing a different song,” Baraka says.

He says transporting the oil without the signing of the Petroleum Bill 2017 would put the community in a precarious position as there will be no law to protect them.