Energy

An anticipated recovery in the upstream segment in 2017 could spur a new round of investment, and downstream demand is expected to continue rising, particularly as vehicle sales accelerate. While the forecast for 2015 is mixed, the industry’s long-term prospects remain bright, and the sector is likely to be a major economic engine over the next five years. The total volume of petroleum products imported in 2014 rose by 11.7% to 4.46m tonnes, with the petroleum import bill simultaneously increasing by 5.6% to reach KSh333.15bn ($3.7bn), while total domestic demand for petroleum products grew by 5.3% to hit 3.94m tonnes. Building on its sizeable reserves of soda ash, fluorspar and titanium oxide, among other resources, Kenya’s burgeoning mining sector is poised for significant long-term growth. The industry’s potential is thus helping to attract major investments in critical infrastructure.

This chapter contains interviews with Donald Mahaga, Chairman, Kenya Oil and Gas Association; and Tim Carstens, Managing Director, Base Resources.