Kenya: Mining, oil revenues to overtake coffee earnings

Oil rig West-Africa25 October 2013, Nairobi – Analysis at Pinebridge Investments have backed nascent mineral, oil and gas industries to contribute five per cent to gross domestic product in the next three to four years, replacing coffee exports.

Their forecast is pegged on expected first shipment of titanium by end of the year as earlier announced by the Kwale based miner, Base Titanium.

Kenya, they said, holds an estimated Sh5.45 trillion ($64.2 billion) of wealth in rare earth minerals only.

The firm’s investment manager Nicholas Ithondeka said the biggest impact of the emerging sector on economic output is however expected to be felt upon production of oil, he said.

“Oil production will potentially change the structure of Kenyan economy radically,” the analyst said. “It will allow Kenya to diversify export earnings, slow down the rising import bill and act as a ctalyst for infrastructure spending.”

The two prospecting firms, British Tullow Oil and Canadian Africa Oil, have projected that the country could be sitting on 368 million barrels of oil in Turkana basin.

– The Star

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