Kenya is doubling down on its petroleum ambitions. In a bold move to jumpstart the stalled sector, the government has announced it will open 10 new oil and gas exploration blocks to global investors in September 2026. The licensing round signals a renewed determination to transform Kenya into a commercial oil exporter by the end of the year, ending a decade of delays and false starts.

Energy Cabinet Secretary Opiyo Wandayi made the announcement, framing it as a "game-changer" for the national economy. The new blocks, located in the Lamu and Anza basins, have been mapped using advanced geoscientific data, offering investors a clearer picture of the riches lying beneath the surface. This is not just an auction; it is a declaration that Kenya is open for business and ready to monetize its resources.

Reviving the Turkana Dream

The timing is critical. After years of uncertainty following Tullow Oil’s struggles, the sector is finally seeing movement. The South Lokichar Basin project, now driven by Gulf Energy after their acquisition of Tullow’s assets, is racing towards a target of "First Oil" by December 2026. The government believes that success in Turkana will trigger a domino effect, attracting majors to the new blocks.

"We have learnt from the past," Wandayi told stakeholders. "The new Production Sharing Contracts (PSCs) are flexible, competitive, and designed to move quickly from exploration to extraction." The government is banking on the stable legal framework to outcompete other African frontiers like Namibia and Guyana.

Infrastructure Key to Success

However, oil in the ground is worthless without a way to get it out. The government has committed to fast-tracking the Lokichar-Lamu crude oil pipeline, a massive infrastructure project that is the lifeline of the industry.

• The Data Advantage: Unlike previous rounds, investors will have access to a centralized National Data Centre, reducing the risk and cost of exploration. Seismic surveys suggest these new blocks could hold reserves rivaling the Turkana finds.
• Economic Impact: If successful, oil revenues could solve Kenya's chronic debt issues. But experts warn of the "resource curse." The government has promised transparency, but the public remains skeptical about how the billions will be managed.

The Race Against Time

With the global energy transition accelerating, Kenya knows the window to exploit fossil fuels is closing. This licensing round is likely the last big roll of the dice. If the investors bite, 2026 could be the year Kenya finally joins the league of petro-states. If they don't, the oil may stay in the ground forever.