Tullow oil firm injects Sh158b into Kenyan operations
Lewis Njoka @LewisNjoka
A Sh158 billion injection by British oil firm Tullow has signalled its appetite for exploration in Kenya giving hope to its oil dream after the UK-Africa summit which concluded last week.
The firm, which had a bad run which saw them fire the chief executive last year on lower than expected production estimates, caused jitters in Kenya, where it is currently exporting Early Oil to the market before a final investment decision is reached.
Another firm, Globeleq, will invest Sh6.6 billion in the country at Malindi’s photovoltaic solar park as part of the Sh227 billion trade pact signed last week by President Uhuru Kenyatta.
Kenya was among 16 African countries that took part in the meeting and looks forward to benefiting from deals valued at more than Sh8.6 trillion which also targeted the Kenya’s affordable housing projects.
With Britain on the cusp of exiting the European Union – Brexit – on terms yet to be agreed, it must shore up trading relations with other parts of the world.
The appetite for deepening ties with Africa informs part of the process given that the continent has eight of the 15 fastest growing economies in the world.
This is further compounded by indications that by 2050, the continent will be home to 25 per cent of the world’s consumers, hence a UK-Africa summit made lots of economic sense for UK.