Since the 1950s Kenya has engaged in the extractives (oil, gas and mining) sector. In 2012 the Government announced the discovery of commercial quantities of Oil in Turkana. The 2012 announcement, coupled with the creation of County Governments in 2013 began the Kenyan discussion on the upstream oil and gas sector. Host communities expect rapid economic growth and are concerned about the negative impacts of the industry and the general public anticipate oil revenues to power the economy and reduce the tax burden. Since then, there have been massive developments in the sector ranging from the adoption of the Petroleum Act, 2019 in place, to the capacity building of government agencies to the interventions by civil society organizations. The Government of Kenya and the World Bank through the Kenya Petroleum Technical Assistance Project (KEPTAP) has since 2014 built the capacity of government agencies in anticipation of the commercialization of Kenya’s crude oil. Various civil society organizations- including the conveners of Jukwaa- have worked with communities in Turkana County to build the capacity of host communities and ensure that they advocate for a good deal in the sector.
The earliest record of commercial mining in Kenya dates back to 1911 with the formation of the Magadi Soda Company which operated in modern-day Kajiado County. Mining sector reforms began in 2013 with the creation of the Ministry of Mining and the subsequent adoption of the Minerals and Mining Policy of 2016 and the Mining Act, 2016. Subsequent efforts such as the development of the Mining Cadaster and the development of Community Development Committee guidelines have enabled better regulation and oversight in the sector. Mining companies in Kwale and Magadi are now under more scrutiny as communities are looking to finalize their Community Development Agreements to ensure adequate beneficiation.
Context
In the Mining Sector, the major development centres around the expansion of operations and communities working towards equitable beneficiation and the implementation of artisanal and small scale mining regulations. Base Titanium in Kwale have expanded their operations thus are set to acquire additional land and will be required to sign various Community Development Agreements (CDAs). Tata Chemical in Magadi is negotiating a CDA. CDAs are gaining popularity as a tool to ensure equitable benefit-sharing between companies and host communities. During the national Jukwaa and county convenings, the benefit-sharing for host communities with regards to CDAs and revenue sharing shall feature in the discussions in Kwale, Migori, Kajiado, Kakamega, Kitui and Elgeyo Marakwet counties.
For Oil and Gas- Tullow Kenya and Africa Oil have dominated the upstream oil sector. The three significant developments in the sector are first the Early Oil Pilot Scheme (EOPS) launched in 2018, the development of the proposed Lokichar Lamu Crude Oil pipeline that will transport the crude oil to the Kenyan Coast. Third the journey towards full filed development with the Final Investment Decision expected at the end of 2019. During Jukwaa the discussions around benefit sharing shall consider these three developments and will aim to position the public and host communities to ensure the sustainable development of the sector, and they benefit equitably from the crude oil revenues. During the conference, Turkana County will be the focus; however, participants
from Kisumu (Nyakach), Baringo, Elgeyo Marakwet, West Pokot, Kajiado and Lamu Counties impacted by the sector will share their experiences.
2019 Theme
With all these developments in the extractives sector- stakeholders must ensure that host communities are adequately compensated and supported to ensure their social and economic development- keeping in mind the potentially disruptive nature of extractive industries.
It is in this context that the Haki Madini coalition, Kenya Civil Society Platform on Oil & Gas and the Kenya Land Alliance are organizing the Jukwaa la Madini Mafuta na Gesi 2019 that will focus on benefit Sharing in the extractives industry. The conference this year will examine various aspects of benefit-sharing ranging from local content, the management of County Government and Community share of revenues/ royalties and the implementation of CDAs under the Mining Law. Additionally, during the National and County convenings land rights issues as well as artisanal and small-scale mining, shall be traversed.
Who We Are
The Haki Madini Kenya (HMK) coalition was formed in November 2014 as the culmination of efforts of civil society and faith-based organizations, the rallying call at this meeting was the centrality of communities as key stakeholders in the extractive sector. With this in mind, representatives from eight (8) mineral-rich counties decided to form HMK as a vehicle for collective action. Having implemented activities in six counties for over two years, HMK decided to cast its thinking and engagement in the extractive sector. HMK has since expanded its membership and now works across 11 counties.
The Kenya Civil Society Platform on Oil and Gas (KCSPOG), formed in 2013, is a network of member organizations that collaborate their efforts and activities aimed at ensuring that there is transparency and accountability in the nascent oil and gas sector in Kenya. The Platform seeks to convene and coordinate Civil Society Organizations (CSOs) working in the oil and gas sector with common advocacy strategies to influence policy and regulations. The Platform gives a collective voice in thematic areas such as revenue sharing and management, legal and regulatory framework, transparency and accountability, land and environmental rights and local content, among others
The Supporting Inclusive Resource Development in East Africa (SIRD) is a five year project funded by Global Affairs Canada, the project is being implemented in the East African region by the Canadian Bar Association (CBA) collaboratively with the Law Societies of East Africa, Uganda, Kenya and Tanzania, with the ultimate goal to increase sustainable economic growth for East Africans, in particular, women. The project has two expected Intermediate Outcomes: 1) the Increased engagement of East African law societies to advocate for law reform to reflect the principles of transparency, gender sensitivity and accountability in the extractive industries and 2) Increased community participation, particularly of women, to advance and protect their rights related to the extractive industries. The SIRD Project is focused on enhancing inclusivity and supporting good governance of the natural resource(s) sector in East Africa, ensuring that the benefits of the industry, from mining, oil and gas exploration and other extractive industries, extends to all key stakeholders, including governments, their business partners and most importantly, their citizens –especially those most marginalized. It will build the capacity of members of the different law societies, government ministries and community rights holders and
Jukwaa La Madini, Mafuta na Gesi
At least 400 participants drawn from host Communities in 11 counties, Community Based Organizations (CBO’s), Civil Society Organizations (CSOs), Faith-Based Organizations (FBOs) working in extractives sector, National Government officials, County Government officials, mining, oil and gas companies, media, regional experts, academic, research institutions, professional bodies and members of the public, said the organizers.
Jukwaa la madini, mafuta na gesi
Conference Themes
The theme for the national conference will focus mainly on benefit sharing, which includes;
Revenue sharing: Sub-national revenue management at the county level and at the host community level; Creating structures for sub-national revenue
Local content: Expectations of host communities; Training opportunities to be pursued; Analysis of types of employment and contracts including business ventures; Gendered dynamics of women in local content
Community Development Agreements: Negotiation of CDAs; What to expect from CDAs; Proper management of CDAs by the CDA committees
The two featured themes are:
Land: acquisition of community land; resettlement; compensation and grievance redress
Artisanal and Small Scale Mining: payment of royalties and support for artisanal miners by Government
The County Forums will focus on the issues within the county related to any of the above themes.
