Kenya’s long-stalled dream of becoming an oil-producing nation may finally be turning into reality. More than a decade after the initial discovery in the remote Turkana region, Gulf Energy Ltd., a Nairobi-based energy firm, has taken charge of the project and set an ambitious target to begin crude production by December 2026.
This marks a major shift in Kenya’s energy narrative, a transition from years of frustration, financial setbacks, and foreign exits to a renewed sense of optimism driven by local ownership.
A Decade of Delay: The Tullow Oil Saga
The Turkana oil discovery, made in 2012 by British explorer Tullow Oil, was initially hailed as the spark that could transform Kenya’s economy and position it among Africa’s energy producers. The South Lokichar Basin was estimated to hold 560 million barrels of recoverable oil, making it one of the most promising onshore finds in East Africa at the time.
However, Tullow’s optimism soon collided with reality. Despite years of exploration and feasibility studies, the company struggled to secure financing for full-scale development. Its partners, TotalEnergies and Africa Oil Corp. withdrew from the venture in 2024 after the financial framework for the multi-billion-dollar development plan collapsed.
By early 2025, Tullow was left holding a project it could no longer sustain. The Kenyan Energy Ministry eventually rejected its field development plan, citing the company’s inability to demonstrate adequate financial backing. This effectively ended Tullow’s long and difficult run in Turkana.
A New Hope: Gulf Energy Steps In
In April 2025, Gulf Energy Ltd., a homegrown energy and fuel trading company, acquired the Turkana project from Tullow for $120 million. The acquisition was seen as both a bold business move and a patriotic one, signaling Kenya’s readiness to take ownership of its energy future.
Gulf Energy has since submitted a revised field development plan, which has successfully cleared the Energy Ministry and now awaits Parliamentary approval, according to Energy Minister Opiyo Wandayi. Once approved, Gulf plans to move swiftly into the drilling phase, with the first barrels of oil expected to flow by late 2026.
What’s at Stake for Kenya
The South Lokichar project could produce between 60,000 and 100,000 barrels per day in its initial phase. Longer-term development plans include constructing an 895-kilometer export pipeline to the port of Lamu, which would enable Kenya to export crude directly to international markets.
In the short term, however, Gulf Energy is expected to rely on trucking crude to Mombasa, echoing the pilot exports carried out by Tullow in 2019, when small shipments of Kenyan crude reached international buyers for the first time.
For Kenya, this renewed activity carries immense economic and strategic importance. Successful production would mark the country’s official entry into the ranks of East African oil producers, joining Uganda and South Sudan, and could open the door to billions of dollars in future investment.
Government Backing and Policy Support
The Kenyan government has been quick to capitalize on this momentum. In recent months, it has introduced a series of tax incentives, regulatory reforms, and exploration licensing rounds for up to ten new oil blocks, aiming to attract both domestic and international investors.
The Energy Ministry has also emphasized its commitment to ensuring that the benefits of oil production are equitably shared among national and local stakeholders. Revenue-sharing frameworks are expected to prioritize community development in Turkana, an area that has historically suffered from poverty, insecurity, and underinvestment despite being rich in natural resources.
“The entry of Gulf Energy represents a new chapter in Kenya’s oil story,” said Energy Minister Opiyo Wandayi during a recent briefing. “This is not just about producing oil , it’s about proving that Kenyans can drive and manage major energy projects on their own terms.”
Challenges Ahead
Despite the growing optimism, several challenges remain. The region’s remote location, limited infrastructure, and security concerns continue to pose logistical difficulties. Building the export pipeline to Lamu will require significant investment and coordination, while global oil price volatility could impact project economics.
Environmental considerations also loom large. Civil society groups have urged the government and Gulf Energy to adhere to strict environmental standards and to consult with local communities to avoid the kind of social unrest that plagued earlier phases of exploration.
A Second Chance at Energy Independence
For Kenya, the transfer of the Turkana project from a foreign multinational to a domestic company symbolizes more than just a business transaction, it represents a second chance to build a sustainable and inclusive energy industry.
If Gulf Energy meets its 2026 production target, the project could generate thousands of jobs, boost national revenue, and help diversify Kenya’s economy, which remains heavily reliant on agriculture and services.
More importantly, it would prove that local expertise and investment can succeed where global giants faltered, transforming a once-cursed project into the cornerstone of Kenya’s homegrown energy ambition.
Conclusion
Kenya’s journey from discovery to production has been marked by false starts and dashed hopes, but the story is far from over. With Gulf Energy at the helm, the Turkana oil fields are once again alive with possibility.
If all goes according to plan, by the end of 2026, the first streams of Kenyan crude could be flowing, not just as a symbol of economic progress, but as proof that persistence, policy reform, and local leadership can finally turn a long-delayed dream into a national triumph.