Commissioner Petroleum Urges Private Sector to Engage in Policy -Making

Commissioner for Petroleum, Mr. Joseph C. Otieno, (R. Geol) has urged private sector players in the petroleum industry to actively participate in policy-making processes during stakeholder meetings.

Mr Otieno emphasized that their input is crucial in shaping policies and providing solutions to key issues that will drive the sector’s growth.

Speaking at a regional meeting of Petroleum industry in Dar es Salaam, Tanzania during the Eleventh East Africa Petroleum Conference and Exhibition (EAPCE’25), Otieno highlighted the need for a robust legal and regulatory framework that supports industry growth without being punitive.

He noted that a balance must be struck between government interests and private sector investments.

"The Kenyan government has reviewed the Petroleum Act to enhance service delivery, provide incentives, and ensure investors benefit, including the ability to repatriate profits," Otieno stated.

He further underscored the importance of tax compliance, noting that while private sector players must pay taxes as required by law, the government has introduced institutional reforms and incentives to create a favorable business environment.

The Commissioner called for transparency in sector operations, particularly in the licensing of petroleum blocks, ensuring a level playing field for all investors.

"The oil and gas sector are highly capital-intensive and involves significant risks. Over the years, the appetite for such investments has declined. To address this, the Kenyan government has introduced tax incentives to attract investors," he explained.

He added that the government has reduced taxes on certain goods and services within the oil and gas sector while also promoting local participation.

"We have local content regulations in place to ensure that specific services and opportunities within the industry benefit Kenyan enterprises," Otieno concluded.

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