National Oil Corporation of Kenya (NOC) chairman, Kiraitu Murungi, implored President William Ruto to divert investments in oil production.
Addressing foreign delegates from nine countries attending the 8th African Petroleum Data Management Forum, Kiraitu advised Ruto that investing in the Lokichar basin in Turkana would help his administration collect close to Ksh1 trillion (USD8 billion).
According to Kiraitu, the money would help President Ruto tackle the debt crisis in the country, with proceeds collected channelled to other sectors of the economy.
Besides raising funds, the money from the oil fields would grant the country financial autonomy and avoid overdependence on foreign debt.
"If we properly exploit the oil and gas, we can even solve the debt problems, build more schools and tackle extreme poverty," he stated,
"With Ksh1.1 trillion (USD 8 million), we don't need fund from the International Monetary Fund (IMF), China and other loan oppressors. We can liberate ourselves by exploiting these resources," he added.
The former Meru Governor disclosed that National Oil Corporation was developing a new framework to bring the government and other key investors on board.
"We will work with our government to see how we can exploit these resources. We are literally sitting on dollars," he insisted.
Investors pulled out of Tullow Oil, forcing the government to invite other capitalists to fund the country's oil exploration plan.
Africa Corp, a Canadian Company and Total Oil are the companies which exited the Kenyan exploration market in May 2023.
Despite Kenya facing a cash crunch, Deputy President Rigathi Gachagua, on Monday, June 5, disclosed that the government would not acquire debt for recurrent expenditures. Gachagua addressed governors who threatened to shut down the counties due to a cash crisis.
Gachagua assured them that the National Treasury was working on releasing funds to facilitate county operations.
Debt Situation
According to the Central Bank of Kenya, the country's debt stands at Ksh9.182 trillion, edging towards the Ksh10 trillion borrowing cap set by Parliament in June 2022.
David Ndii, President William Ruto's Council of Economic Advisors Chairperson, also warned that the government was in a dilemma about paying debts or salaries.
"We are not insolvent. Our debt is actually payable," Ndii insisted while dismissing reports on loan default.
