Discussion Paper No 291 of 2022 on Development of Specialized Skills in the Upstream Oil and Gas Industry in Kenya

Abstract

The discovery of oil and gas deposits in Kenya presented an opportunity for economic growth, but challenges, such as the shortage of specialized technical human capacity, have emerged. This case study focuses on initiatives proposed in the policy, legal, and institutional frameworks to promote skills in the oil and gas industry in Kenya. It examines the type and scope of local training programs available and draws lessons from international best practices in improving Kenya's local content. The findings reveal that while Kenya has policies in place to promote local capacity, the lack of specific thresholds hinders implementation and enforcement. Limited Technical Vocational Education and Training (TVET) institutes offer courses in the oil and gas industry, primarily focusing on midstream and downstream segments. Monitoring and enforcement of local content provisions are at risk of overlapping roles between the Energy and Petroleum Regulatory Authority (EPRA) and the proposed committee in the Local Content Bill. Collaboration between international oil companies and local research institutions in research and development (R&D) is also lacking. Recommendations include amending legislation or enacting regulations with specific thresholds for easy implementation, developing training curricula in collaboration with industry players, avoiding overlap in monitoring roles, establishing a center of excellence for R&D, and fast-tracking the enactment of the Local Content Bill to promote technology transfer, enforce local content, and build a specialized local skill base in Kenya's oil and gas industry.