Gulf Energy Breaks Ground on Lokichar Oil, Eyes December Exports
Energy & Transport

Gulf Energy Breaks Ground on Lokichar Oil, Eyes December Exports

Gulf Energy E&P BV has broken ground on the long-awaited Lokichar oil project in Turkana County, with chairman Francis Njogu confirming to Parliament that the company is targeting first commercial crude exports by December 1, 2026. Initial production is set at 20,000 barrels per day, with crude to be evacuated via an integrated road-rail-port logistics corridor.

Gulf Energy Tables $6 Billion Pledge

Appearing before the National Assembly’s energy committee, Gulf Energy chairman Francis Njogu committed approximately $6 billion in total investment. Up to 200 specialised crude tanker trucks will ferry oil from the South Lokichar fields to Eldoret for transfer onto the metre-gauge railway to Mombasa. The Kenya Ports Authority confirmed the Kipevu terminal berths are ready to receive initial production volumes.

What Comes Next

Gulf Energy must mobilise road construction equipment, complete well tie-ins, and secure binding offtake agreements with international crude buyers before December 1, 2026.

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EPRA's Open Access Rules End Kenya Power's Long-Standing Monopoly
Energy & Transport

EPRA’s Open Access Rules End Kenya Power’s Long-Standing Monopoly

The Energy and Petroleum Regulatory Authority (EPRA) gazetted sweeping new electricity market rules on May 8, 2026, formally ending Kenya Power and Lighting Company’s decades-long monopoly over bulk electricity distribution. The Energy (Electricity Market, Bulk Supply, and Open Access) Regulations 2026 allow large consumers to buy power directly from generators including KenGen and independent power producers.

Open Access Regulations Reshape Kenya’s Power Market

Any consumer drawing at least one megavolt-ampere (MVA) from the distribution network, or at least 10 MVA from the transmission network, is eligible to enter direct power purchase agreements with generators. Contracts must run between one and ten years, with pricing subject to EPRA approval. Large industrial and commercial consumers accounted for approximately 7,313 gigawatt-hours — 70% — of Kenya Power’s sales in the year to June 2025.

What Comes Next

EPRA must now operationalise the regulations by finalising the network wheeling tariff methodology, establishing licensing processes for eligible consumers and generators, and ensuring Kenya Power and KETRACO have the advanced metering and billing infrastructure required.

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Kenya SGR Extension Breaks Ground, Stretching Line to Malaba
Energy & Transport

Kenya SGR Extension Breaks Ground, Stretching Line to Malaba

Kenya Railways Corporation officially broke ground on the long-awaited Naivasha-Kisumu-Malaba Standard Gauge Railway extension on July 1, 2026 in Narok County, with a second ceremony held at Kibos in Kisumu County the following day. The Ksh700 billion project, awarded to Chinese state-linked firms CCCC and CRBC, will extend Kenya’s SGR network 371 kilometres westward to the Ugandan border at Malaba.

Groundbreaking Signals Formal Construction Start

The project is structured in two phases: Phase 2B covering the 264-kilometre Naivasha-Kisumu segment plus an 8.9-kilometre branch line to Kisumu Port, and Phase 2C adding the 107-kilometre Kisumu-Malaba extension. Ahead of construction, the National Land Commission had been engaging affected landowners in Kisumu with a public sensitisation meeting on June 24, 2026.

What Comes Next

The focus shifts to construction momentum and the land compensation process. Kenya Railways Corporation has not publicly committed to a specific completion date, though the project suggests a construction window extending into the early 2030s.

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KenGen Nearly Quadruples Energy Target to 5,500MW in Bold Leap
Energy & Transport

KenGen Nearly Quadruples Energy Target to 5,500MW in Bold Leap

Kenya Electricity Generating Company (KenGen) dramatically raised its long-term generation capacity target from 1,500 megawatts to 5,500 megawatts on June 29, 2026, nearly quadrupling its original ambition as it released its inaugural sustainability report at Karura Forest in Nairobi. The expanded pipeline is anchored by a planned 2,000-megawatt nuclear power programme and broadened geothermal, hydro, and solar projects.

5,500MW Target Unveiled

The inaugural sustainability report disclosed that 94.4% of KenGen’s electricity dispatch during the reporting year came from renewable sources. The company also reported generating 6.9 million carbon credits, restoring 850 hectares of degraded land, and producing 887,220 tree seedlings, exceeding the annual target by seven percent.

What Comes Next

KenGen must convert the ambitious 5,500-megawatt headline into a detailed project pipeline, financing roadmap, and regulatory engagement plan. Progress on the Kenya Nuclear Electricity Board’s site selection studies will serve as the key indicator of whether the nuclear component is credible.

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