Sector Plan for Oil and Other Mineral Resources

1.0 INTRODUCTION

2.0 SITUATION ANALYSIS

2.1 Overview

2.2 Achievements in Programmes and Projects during the Second Medium Term Plan 2013-17 3.0 | EMERGING ISSUES, CHALLENGES AND LESSONS LEARNT

3.1. Emerging Issues

3.2 Challenges

3.3 Lessons Learnt

4.0 PROGRAMMES AND PROJECTS FOR 2018-2022

4.1. Oil and Gas

4.2 Other Mineral Resources

4.3. Other Programmes and Projects

5.0 POLICY, LEGAL AND INSTITUTIONAL REFORMS

5.1 Policy Reforms

5.2 Legal Reforms

5.3 Institutional Reforms

5.4 Cross Cutting Reforms

ANNEX 1: IMPLEMENTATION MATRIX 22 ANNEX 2: MONITORING AND EVALUATION MATRIX 27 vi VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 ABBREVIATIONS AND ACRONYMS AGO Automotive Gas Oil DRSRS Directorate of Resource Surveys and Remote Sensing DPs Development Partners EOPS Early Oil Pilot Scheme FDI Foreign Direct Investment GDP Gross Domestic Product GETI Geological Exploration Technological Institute Gok Government of Kenya GoR Government of Rwanda GoU Government of Uganda ICT Information and Communication Technology l0Cs International Oil Companies IPOs Initial Public Offerings KJV Kenya Joint Venture KEPTAP Kenya Petroleum Technical Assistance Project KETRACO Kenya Electricity Transmission Company KOT Kipevu Oil Terminal KOSF Kipevu Oil Storage Facility KPA Kenya Ports Authority KPC Kenya Pipeline Corporation KPRL Kenya Petroleum Refineries Ltd KSh. Kenya Shilling LAPSSET Lamu Port & South Sudan-Ethiopia Transport LPG Liquefied Petroleum Gas LNG Liquefied Natural Gas Me Cubic Metres MoE&P Ministry of Energy and Petroleum MIOG Morendat Institute of Oil and Gas VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 vii MSP - Motor Spirit Premium MTP - Medium Term Plan MW - Megawatts NAFFAC - National Fossil Fuel Advisory Committee NDT - Non-Destructive Testing NLC - National Land Commission NMC - — National Mining Corporation NOCK - — National Oil Corporation Kenya OADJ - Office of Attorney Department of Justice OEL - Oil Exploration License OTS - OpenTender System PPP - Public Private Partnership REE - Rare Earth Elements SAGAS - Semi-Autonomous GovernmentAgencies SDGs - Sustainable Development Goals SPM - State Department for Mining SDP - State Department for Petroleum SOT - Shanzu Oil Terminal TOR - — Terms of Reference USD - United States Dollars VTTI - Vitol Tank Terminals International viii VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 EXECUTIVE SUMMARY The Government of Kenya recognizes the importance of Oil and other Mineral Resources Sector in facilitating economic growth and development. The Oil and other Mineral Resources sector is one of the priority sectors under the Economic Pillar of the Kenya Vision 2030. The extractive industry has emerged as an important player in Kenya's economic development and realization of the Sustainable Development Goals (SDGs). The sector contributes about one (1) per cent to Gross Domestic Product (GDP) and three (3) per cent of the total export earnings and has the potential for higher contribution, in view of the discoveries of oil in Turkana County, Titanium and Rare Earth Elements (REE) in Kwale County, coal and gas in Kitui and Lamu Counties. During MTP Il, the sector registered several achievements. In the oil and gas subsector, achievements include: Construction of a 122 km long, 12-inch diameter, parallel petroleum pipeline from Sinendet to Kisumu; installation of mainline Pumps in seven inter-stations along the Mombasa-Nairobi pipeline (Line |); modification of tanks and related facilities for receipt of crude oil for the interim scope for the Early Oil Pilot Scheme (EOPS); drilling of 17 oil exploratory and 22 appraisal wells; development of petroleum master plan and gazettement of additional 17 new oil exploration blocks; development of the Strategic Environment and Social Assessment (SESA), and Gender Assessment Guidelines. Similarly, extraction of heavy sands in Kwale County, enactment of the Mining Act, 2016, construction of the Gemstone Value Addition Centre in Taita Taveta County and upgrading of the Online Transaction Mining Cadaster Portal were undertaken in the other mineral resources sub sector. The sector undertook key policy, legal and institutional reforms during the MTPII period. These included: Formulation of the National Energy and Petroleum Policy 2015; Petroleum Bill 2015 prepared, passed by the National Assembly and submitted to the Senate; completion and approval by the Cabinet of a model Production Sharing Agreement in 2015; preparation of the Petroleum Exploration, Development and Production (Local Content) Regulations, 2014; development of the Mining and Mineral Policy in 2014 and approved by Cabinet in April 2015; Mining Act 2016 came into effect in May 2016 replacing the colonial Mining Act of 1940 (Cap 306); drafting of 14 of the targeted 21 sets of Mining Regulations and Guidelines to operationalize the Mining Act completed, among others. During the MTP period, various issues emerged, challenges were experienced and lessons learnt which were Crucial in setting of priorities for the MTP Ill. Critical emerging issues were: slowdown in investment in sector due to decline of international crude oil and other minerals prices; incidences of insecurity which affect exploitation of resources in areas prone to attacks; regional geopolitics/re-alignment and mainstreaming of Climate Change Act 2016 in programmes and projects Lessons learnt include the need to strengthen national and county governments collaboration and other stakeholder engagements at all levels of programme/project development, strategic partnership in project financing, execution and skills transfer; enhanced involvement of key local professionals; need for a structured framework for managing community expectations and, the need for a national oil and chemical spill contingency plan for the onshore and offshore exploration activities among others. The Oil and Other Mineral Resources Sector Plan for 2018 - 2022 prioritizes programmes and projects and the requisite policy, legal and institutional reforms to be implemented. The sector has realigned the programmes/projects to the Big Four (4) Government priority areas: Manufacturing, affordable housing, food and nutrition security and universal health care. It is noted that the sector has potential to generate revenue to support the achievement of the Big Four. Flagship projects and programmes in the oil and gas subsector include: Security of Supply of Petroleum Products; Quality Assurance of Petroleum Products; VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 ix Commercialization of the Oil and Gas; Expansion of National Pipeline Network; Construction of Lokichar-Lamu Crude Oil Pipeline; LPG distribution and storage Project in Mombasa and Nairobi; Enhancement of Refined Petroleum Products Storage Capacity in Mombasa; National LPG Enhancement Project (Mwananchi LPG Project). Similarly, in the other Mineral Resources subsector, planned projects and programmes are: Geophysical Surveys; Internationally Accredited Mineral Certification Laboratory (IAMCL); establishment of Geological Data Bank; development of African Mineral Development Centre and Geological Mapping, among others. The implementation of the sector plan will be anchored on Policy, Legal and Institutional Reforms in conformity with the Constitution of Kenya. The focus will be on reforms to achieve efficient and effective service delivery and streamlining of the sector operations. The Policy and legal reforms will include: implementation of the provisions of the revised Energy and Petroleum Policy, Petroleum Bill 2015, the Mining and Mineral Policy of 2016 and the Mining Act, 2016. Other reforms will include the implementation of provisions of the Public Participation Bill, 2016, once enacted and Implement the Land Laws (Amendment) Act, of 2016. Environmental and Social reforms for the sector will focus on mainstreaming climate change and gender. The MTPIll implementation matrix provides an elaborate framework for executing programmes/projects within the set timeframe. The monitoring and evaluation matrix has been structured to monitor the performance of sector projects and programmes. X VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 1.0 INTRODUCTION The extractive industry is emerging as an important sector in Kenya's economy. Extractive’ resources are spread across the Republic. This is recognized in the Kenya Vision 2030 and its subsequent Medium-Term Plans. Specifically, the Second Medium Term Plan (MTP Il) reaffirmed this position by introducing oil and other mineral resources as the seventh sector under the Economic Pillar of Vision 2030. Article 69 of the Constitution provides for sustainable exploitation, utilization, management and conservation of the environment and natural resources and equitable sharing of accruing benefits. These are also recognized in the international and regional development commitments such as Sustainable Development Goals (SDGs) and African Agenda 2063 which Kenya is a signatory to. This calls for a balance in sustainable growth and equity in use of resources for the future of the sector. The sector currently contributes about one (1) per cent to Gross Domestic Product (GDP) and three (3) per cent to the total export earnings to the economy. The potential for higher contribution exists following the recent discoveries of natural resources minerals such as oil in Turkana County, Titanium and Rare Earth Elements (REE) in Kwale County, coal and gas in Kitui and Lamu Counties. It is expected that with the discoveries, and development and management of oil, gas and other mineral resources, industrial growth can be realized. Accelerated exploitation of mineral resources and the associated value chain activities will result in employment creation, increased export earnings, alleviation of poverty and bridging the inequality gap. These activities have also improved development of infrastructure thus improving the livelihood of the communities. Other minerals contributing towards this growth include: precious metals (gold, silver); base metals (copper); dimension stones (granite, marble and limestone); industrial minerals (fluorspar, titanium and limestone); gemstones (ruby, sapphire, rhodolite); chemical minerals (soda ash, carbon dioxide, salt and hydrocarbons or oil) and fossil fuels (coal, oil and gas). During the MTP II period, the volume of petroleum fuel imports expanded by 62 per cent from 2.95 million tons in 2013 to 4.84 million tons in 2016. This is attributed to increased number of automobiles translating to high demand for petroleum products by 35 per cent. Mining and quarrying contributed 0.8 percent to the Gross Domestic Product (GDP) in 2016. Achievements in the oil sub-sector include: construction of a_ parallel petroleum pipeline from Sinendet to Kisumu (122 km), installation of mainline pumps in seven inter-stations along the Mombasa-Nairobi pipeline (Line I); modification of tanks and related facilities for the Early Oil Pilot Scheme (EOPS); drilling of 17 exploratory oil wells and 22 appraisal wells; completion of a roadmap report towards the Petroleum Master Plan for Kenya and gazettement of additional 17 new oil exploration blocks. In addition, 51 wells were drilled (well density of 10 per year). Similarly, in the other mineral resources subsector, major achievements included extraction of heavy sands in Kwale County, construction of Gemstone Value Addition Centre, upgrading of an Online Transaction Mining Cadastre Portal and enactment of the Mining Act, 2016. Several regulations and strategies were developed, and institutions established to support implementation of programmes and projects in the sector. Specifically, local content regulations in energy and oil exploration were developed; National Mining Corporation established; regulations to effect the Mining Act 2016; Strategic Environmental and Social Assessment (SESA); National Communication Strategy (NCS) and Gender Assessment Guidelines for Oil and Gas. 1Extractive resources include oil, gas and other minerals extracted from the earth surface VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 1 Anumber of challenges were encountered in the implementation of MTP Il. These include among others: land access and compensation causing project delays and increased cost; Inadequate financial resources; high incidences of insecurity in project areas; inadequate equipment and technical skills in the sector. On the other hand, key issues that emerged include slowdown in investment due to decline of international crude oil and other minerals prices; Regional re-alignment which led to crude oil pipeline route adjustment, among others. Similarly several lessons were learnt. These include the need to strengthen national and county governments collaboration; need for strategic partnership in project financing, execution and skills transfer; enhanced involvement of key local professionals in all phases of project implementation among others. The Oil and Other Mineral Resources Sector Plan for 2018-2022 outlines priority programmes and projects, and the policy, legal and institutional reforms. The reforms envisaged in MTPIll are aimed at efficient service delivery and streamlining operations in the sector. The planned projects and programmes will be undertaken in collaboration with county governments, development partners and the private sector. In the implementation process, environmental sustainability and gender concerns will be mainstreamed. 2 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 2.0 SITUATION ANALYSIS 2.1 Overview The Government recognizes the importance of oil and other mineral resources sector in facilitating economic growth and development, and is one of the priority sectors under the Economic Pillar of Kenya Vision 2030. This chapter analyses the progress made in terms of projects and programmes implementation during the MIP Il, outlining completed programmes and projects as well as the status of the ongoing ones. It also highlights achievements of the policy, legal and institutional reforms. 2.1.1 Oil and Gas Exploration, Appraisal and development of oil and gas in Kenya have been on the rise since 2012 after the first major commercial discovery of oil in the South Lokichar Basin. Cumulatively, ninety (90) wells have been drilled with oil being discovered in forty five (45) wells in the Tertiary Rift and Lamu Basins. Similarly, natural gas has also been discovered in Mbawa 1 well offshore Block L8 and Sala 1 in Block 9 in Tertiary Rift and Anza Basins respectively. Discoveries in the Tertiary Rift and Lamu Basins indicate the existence of commercial quantities of hydro-carbons. The country has already embarked on Field Development Program for the South Lokichar Basin in orderto commercialize the extracted crude oil. Enhanced oil and gas discoveries has resulted increased interest by International Oil Companies (l0Cs) in upstream fossil fuel activities in the country. The IOCs and the National Oil Corporation Kenya (NOCK) are carrying out exploration activities in forty five (45) licensed blocks out of the gazetted sixty three (63) blocks. The exploration initiatives range from preliminary stages of geological and geophysical data acquisition, exploratory, appraisal drilling and field development. These initiatives will accelerate exploration and further discoveries of oil and gas, as well as fast track commercialization of the extracted crude. 2.1.2 Other Mineral Resources The other Mineral Resources sub-sector was characterized by low production of varied minerals such as soda ash, fluorspar, cement, gold, titanium, copper, iron ore, coal, manganese and semi-precious stones amongst others. Mining and quarrying was ranked as the 3 highest growing sub-sector in the year 2016, signifying the sub-sector potential contribution to economic growth. Currently, mineral sands and soda ash contribute significantly to GDP. However, there is potential for the sector to contribute more by focusing on gold, copper, iron and coal. This sector contributed KSh 1.35 billion to government revenues, and is estimated to have created 13,000 formal and 30,000 informal jobs. A major setback is the lack of an effective strategy for marketing, promotion and value-addition of minerals due to inadequate geological data coupled with low investment. Most of the minerals mined are exported in raw form and as a result, the country does not reap maximum returns from her mineral wealth.To exploit the sub-sector's potential, a Mining and Mineral Policy was developed and the Mining Act, 2016 enacted in May 2016. MTP Il (2013-201 7) flagship projects are at different levels of completion and their implementation will continue into the MTP Ill (2018-2022) period. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 3 2.2 Achievements in Programmes and Projects during the Second Medium Term Plan 2013-17 This section presents achievements realised in the implementation of flagship and other programmes and projects during the MTP Il priod. Flagship projects 1. Subdivision and creation of new petroleum exploration blocks based on technical data There are four (4) petroleum exploration basins and these are: Lamu Basin, Anza Basin, Mandera Basin and Tertiary Rift Basin. Oil and gas exploration in the country began in 1956 and the breakthrough came in March 2012 with the discovery of a well —Ngamia 1 Well, in Lokichar Basin in Turkana County. Eighty three (83) wells have been drilled with fifteen (15) hydrocarbon discoveries. The following projects were completed: e Subdivision of oil and gas exploration blocks resulting in increasment of blocks from 21 in 2008 to 46 in 2012 and _ to 63 in 2017. Thirty seven (37) of were licensed and are operated by 18 International Oil Exploration Companies (OCs). e — Eighty three (83) wells were drilled within the four sedimentary basins of Lamu, Tertiary Rift, Anza and Mandera by May 2017. The oil reserve recoverable is estimated at 750 million Barrels (Mbbls). 2. Enhanced primary data acquisition, analysis and interpretation in the open blocks Data acquisition through geological and geophysical surveys was undertaken in blocks L19 and L19A to assess potential of the blocks in orderto attack investors. 3. Establishment ofa National Petroleum Data Centre (NDC) A strategic partnership for modernization of the NDC was established and legacy petroleum data was uploaded into the NDC system. The benefit of the data centre is to enhance marketability of Kenya's exploration acreage through secure and efficient access to archived hydrocarbon data and help the Country pursue opportunities to offer (data hosting services), seismic processing and data visualization to organizations operating within the country and regionally. 4. Conducting a National Airborne Geo- Physical Survey (NAGS) Due diligence on Geological Exploration Technological Institute (GETI) was conducted and procurement of the NAGS supervisor is ongoing and the terms of reference for engagement of contractor have been finalized. 5. Establishment of an Internationally accredited Mineral certification laboratory and Audit unit An Internationally accredited Mineral Certification and Laboratory was established. A new laboratory block was constructed. In addition, highly specialized equipmemt was provided. 4 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 6. Establishment of minerals and Metal commodity exchange The modalities for establishing the Minerals and Metals Commodity Exchange are in progress. This is in collaboration with Central Bank of Kenya, Kenya Revenue Authority and Nairobi Securities Exchange. 7. Minerals Value Addition Centres A Gemstone Value Addition Centre was constructed in Taita-Taveta County and procurement of equipment is in progress. A consultancy to carry out a feasibility study on Granite Processing Plant in Vihiga County was also procured. 8. Skills Development Skills Development and enhancement of local expertise in petroleum exploration and production was done through training and technical collaboration with exploration companies and universities. Some of the Capacity Building projects include: a. Kenya Petroleum Technical Assistance Project (KEPTAP) The objective of this project is to strengthen the capacity to manage the petroleum sector and wealth for sustainable developmentin the country. Achievements during the MTP Il include: Improved coordination of the Petroleum sector organisations. A total of 794 officers from various government agencies were trained on different disciplines in oil and gas sector as well as skills enhancement in management and regulation of the petroleum sector. Trainings were in 71 oil and gas related courses and 33% of the trained officers were females and 67% were male. Transaction Advisory (TA) Services were procured to support negotiations within the upstream sector. iii. Institutional Review Study was commissioned in 2016 to facilitate operationalization of the provisions of the Petroleum Law with regard to establishment of institutions institutions. The Study outlined clear organizational mandates and highlighted areas of overlap and possible solutions in the energy and petroleum sector Strategic Environmental and Social Assessment (SESA) was undertaken and its Report approved by the Bank. Implementation of the report will be undertaken during the MTP Ill period. National Petroleum Master Plan (NPMP): procurement of consultancy services to develop a National Petroleum Master Plan commenced. The consultancy will support GoK in developing a Vision, Strategies and Policy positions related to importation, storage and distribution of petroleum products (including LPG) and to support developing of a domestic gas market. Vi. Accreditation of Kenya Bureau of Standards (KEBS): The Bureau is in the process of reaccrediting its laboratories with the South African National Accreditation Service (SANAS). Accreditation is a requirement for KeBS to engage in the Oil and Gas project as a testing authority of choice. Vii. ERC 5-Year Strategy: The five (5) year Strategic Plan (2017/18-2021/22) developed to assist ERC enhance its regulatory role in the energy sector in Kenya. viii. Cost of Service Study: A study was commissioned to analyze the petroleum sub-sector supply chain in Kenya from import of refined petroleum products, assessing the cost elements in each node and at the most efficient level translate them into a retail price build-up structure. The study also identified potential inefficiencies and deficiencies in the supply chain, their causes and proposed solutions and, the triggers of the changes of the retail price and the tolerance levels. b. Morendat Institute of Oil and Gas The Morendat Institute of Oil & Gas (MIOG) was established in 2016 to build capacity in pipeline management, oil and gas operations and maintenance for Kenya and the region. The Institute VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 5 trained 210 Kenyans on technical courses covering instrumentation and control, basic and advanced firefighting, oil jetty operation and laboratory technologies during the period under review. Other Capacity Building Initiatives During MTP Il Norway supported oil and gas capacity building. Similarly, Toyota Tsusho Corporation (TTC) and Japan Oil, Gas and Metals National Corporation (JOGMEC) supported the following trainings under capacity building programs: e Geophysical prospecting and basin analysis. e Seismic data interpretation and risk analysis. e Fundamental of petroleum geology and remote sensing. e Oil Field Developmentand Field Development Plan (FDP) Review in Kenya. Collaboration with Training Institutions The National Government instituted elaborate and multifaceted strategies towards provision of skilled manpower in oil and gas sector through competency based training in the local Technical Vocational Education Training Institutions and Universities. County Governments also entered into a Memorandum of Understanding (MOU) with Australia Africa Energy and Minerals Institute (AAEMI), establishing a strategic partnership for capacity building offering country wide trainings in the Minerals, Energy, Oil and Gas sector. Kwale Mineral Sands The contract to commercially produce mineral sands in Kwale_ was issued to Base Titanium and the company has extracted 1.56 Million Metric tons of heavy sands translating to KSh 32.1 Billion of mineral sales. The royalty received from sales of heavy sands is approximately KSh 828 Million annually. 10. Logistics and supply chains management for the oil, gas and other minerals, a. Enhancement of Petroleum Products Storage Capacity in Mombasa: Access to affordable, competitive, reliable, quality, safe and sustainable energy is the core mandate of the sub sector. The country imports its entire petroleum products after the suspension of Kenya Petroleum Refinery Limited (KPRL) refining operations in September, 2013. The total petroleum storage capacity was enhanced after the completion and operationalization of the petrocity (Konza) and VTTI depots enhancing the total storage capacity to 989,000M’. This increase in storage capacity enhanced operational reserves to 49 stock days cover for all products imported through Mombasa from 15 in 2013. Quality Assurance of Petroleum Products. The objective of quality assuarance is to maintain high quality of petroleum products sold, prevent tax evasion from diversion of products meant for export market into the local market and eradicate illegal Liquefied Petroleum Gas (LPG) refilling. Proliferation of substandard petroleum dispensing and storage site pose environmental, health and safety risks. The resultant effects include adverse impact on motor vehicles and machinery and a shift to the use of the Central Corridor for transportation of transit products hence loss of revenue for both National and County governments. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 To address this challenge, monitoring of petroleum quality standards was undertaken through regular spot checks within petroleum stations, depots and LPG filling plants, resulting in 24,941 samples tested from different sampled distribution points. 11. Effective management of the environment and social footprints This entailed undertaking of Strategic Envrironmental and Social Environment Assessment (SESA): KEPTAP commissioned and finalized Strategic Environmental and Social Impact Assessment for the Petroleum Sector in Kenya which was a World Bank Safeguard requirement. The report was approved by the National Environment Management Authority (NEMA). The outcomes of the report included identification of areas for environmental and social reforms in the petroleum sector; and availability of a Strategic reference document for sector development planning.. Other programmes and projects implemented during MTP II 1. Geological Mapping, Mineral exploration and evaluation Geological mapping and mineral exploration was conducted for coal in Taru; base metals, construction and industrial minerals in Homa Bay and Tharaka-Nithi and Kitui Counties, Kwale and Kilifi Counties, and along the Standard Gauge Railway between Port Reitz and Mackinnon Road in Mombasa County. Geo- Hazard Mapping and Monitoring Mapping of geo-hazard prone areas was conducted in Nakuru, Narok, Makueni and Taita Taveta Counties and four (4) technical reports prepared. This will facilitate planning and early warning. Mineral Audit Agency The Mineral Audit Unit was established in the Directorate of Mines which enhanced revenue collection (royalty) from KSh 21 Million in 2013 to KSh 1.35 Billion in 2015/2016 financial year. Moreover, the framework for the Unit was developed and the process of procuring the consultancy for Revenue Management System is in progress. Geological Data Bank A building to host the Geological Data Bank was identified and most of the equipment were procured. Digital scanning of hard copy records is in progress. In addition, the government developed and agreed on terms of reference with the British Geological Survey for repatriating of colonial geological data backto Kenya. Online Transaction Mining Cadastre Portal This is a web-based system launched in February 2015 that allows for online application, renewal and payment for mining rights at the convenience of the mining holder. This led to improved mining rights concession management that has increased transparency and accountability as it has minimized interaction between mining holders and government officials. A transparent and accountable system allows for better collection of fees for licenses and permits. The system worked 100% under the old Mining Act Cap 306 but is being reconfigured to conform to the new MiningAct, 2016. National Mining Institute The National Mining Institute was established and will provide opportunity for training manpower and upgrade skills in mining related fields for the mining sector. The trainings will be offered by the VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 7 University of Nairobi and Taita-Taveta University at certificate, diploma, higher national diploma, degree and post-degree levels. The two universities were identified by the Cabinet to collaborate with the Ministry of Mining to offer training for the mining sector. In addition, the Ministry has drafted memorandum of understanding to be signed by the Ministry, University of Nairobi and Taita Taveta University as a means to bind the three institutions together to deliver the training. A Joint Secretariat has been formed between Ministry of Mining, University of Nairobi and Taita Taveta University to spearhead the establishment of the National Mining Institute. National Mining Corporation The establishment of the National Mining Corporation was approved by the Cabinet in April 2016 as contained in the Mining Act, 2016. The Corporation will act as the investment arm of the National Governmentin mining. Development of Petroleum Master Plan The government with the support from World Bank undertook a consultancy towards the development of a petroleum sector master plan for Kenya. The purpose of the master plan is to integrate all elements of the oil and gas value chain- from exploration, production, transport, processing, storage and distribution, and usage in domestic and export market. The expected higher outcome of this plan is the government formulates a vision for development of its petroleum sector policies and investment decisions at earliest possible opportunity to maximize the value from its oil and natural gas resources and stimulate investment in the domestic market. Stakeholders' Engagements The governments conducted stakeholder's engagements within the oil blocks. These included host communities, other government agencies, investors, political leaders, county assemblies and county governments. 10. Construction of Pipeline from Sinendet to Kisumu (Line 6) The construction of the 122 km, 10-inch pipeline parallel to the existing 6-inch pipeline from Sinendet to Kisumu (Line 3) was completed in April 2016. The project has provided capacity to deliver an additional 350m*/hr to meet the increasing demand for petroleum products in Western Kenya and the neighboring countries. The immediate impact of the project has been operational flexibility and efficiency. This has resulted in enhancement of products stocks at the western Kenya depots of Eldoret and Kisumu. Stock-out days have reduced by approximately 85%. This new pipeline will facilitate development of other projects such as the Kisumu Oil Jetty (KOJ) and Kisumu— Busia Pipeline. 11. Installation of Mainline Pumps in Mombasa In orderto meet the rising demand for petroleum products in the region, an additional pump was installed in each of the seven intermediate pumping stations along the Mombasa— Nairobi 14-inch pipeline.The project enabled continuous parallel operation of the pumps in each pump station in a 2 duty — 1 standby configuration. This resulted in increase in overall system availability and average flow rate from Mombasa to Nairobi. 12. Construction of Additional Truck Loading Facility at Eldoret Depot This project entails installation of additional loading facilities in Eldoret to cope with the rising numbers of loading orders. The project will enhance evacuation of products at Eldoret Depot and VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 ensure a faster turn-around of trucks which sometimes have to wait for days to load or have to travel as far as Nairobi and Mombasa to pick products. The project will further enhance operational flexibility at Eldoret and increase service delivery efficiency. 13. Nairobi 130 Metric Tones (MT) LPG Storage, Bottling and Distribution Facilities The overall objective of developing LPG facilities is to ensure availability and accessibility of LPG at cost effective prices, promote use of LPG as a household fuel among the urban poor and the rural population and enhance socio-economic development. 14, Construction of Mombasa — Nairobi New Refined Products Pipeline (Line 5) The 14-inch multi-product pipeline installed between Mombasa and Nairobi is over 39 years old and according to the in-line inspection done in 2010, the pipeline is substantially corroded in sections and requires replacement. The recommendation was to construct a new pipeline with sufficient capacity to meet projected regional demand up to the year 2044. A 20-inch diameter pipeline is being constructed from Mombasa-Nairobi which will employ the highest international standards in safety and technology and will have installed capacity of up to 1000 m*/hr, on commissioning. The pipeline is designed to ultimately achieve aflow rate of 1800 m’/hr through the installation of four additional pumping stations. This new pipeline will reduce pipeline maintenance costs, ensure security of supply for the country and the region, enhance safety and environment and reduce petroleum trucks from the highway. The project is in its final stages of completion and will be commissioned by 31° July 2017. The pipeline network is of strategic importance and without it over 450 petroleum trucks would be required to deliver products in Nairobi and beyond daily. 15. Construction of Additional Tanks at Nairobi Terminal This project involves construction of four petroleum products tanks with a total capacity of 133,000 m’: 2 No. AGO tanks, 1 No, AGO/MSP swing tank and 1 N. MSP tank. The project will provide sufficient capacity for receipt of higher volumes of products expected from the new Mombasa— Nairobi pipeline; increase storage capacity for ground fuels in Nairobi from the current 100,580m* to 233,580m’; provide capacity to build stocks in Nairobi for hinterland demand from 7 days to 17 days assuming 2016 consumption; enhance operational flexibility and evacuation of products at KOSF thereby create more ullage at KOSF and reduce demurrage charges. 16. The Kenya-Uganda Oil Pipeline Project The Government of Kenya and the Government of Uganda signed a Memorandum of Understanding in in 1995 to undertake a feasibility study on the Eldoret — Kampala refined petroleum products pipeline. Upon completion of the feasibility study, a second MOU was signed in 2000 allowing for the implementation of the project. In 2013, the project was expanded to include the Kampala Kigali Segment. The project is coordinated by the ministries responsible for energy in Kenya, Uganda and Rwanda and was earmarked for implementation in MTP Il. However, due to challenges in securing a private investor and funding for construction works, the project was not implemented. In 2014, the three Governments, resolved to source for funds under Engineering, Procurement and Construction (EPC) framework and will proceed with the project once the necessary funds are secured. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 9 17. Kisumu Oil Jetty Lake Victoria provides an opportunity for transportation of transit petroleum products using barges. Currently, transit products along the Northern Corridor are transported by road from the pipeline depots and Mombasa, and with the increasing demand, there has been a corresponding change in the number of petroleum tankers on the roads. The project commenced in May 2017. It will further secure the regional market in petroleum products, provide alternative product transportation mode and enhance regional integration. 18. Enhancement of Refined Petroleum Products Storage Capacity in Mombasa Following the closure of the refineries in September 2013, KPRL changed its business model from refining to provision of services such as storage and handling of refined petroleum products. In 2015, the KPRL was identified as a refined petroleum products OTS delivery point and 140,00m*° storage capacity has so far been added to boost ullage for imports. KPC and KPRL entered into a Lease Agreement in March 2017 through which KPRL leased its facilities to KPC for purpose of carrying on and expanding the existing and/or new business lines. Under this arrangement, the KPC and KPRL facilities will be fully integrated and idle tanks will be converted to refined petroleum products storage to provide additional ullage and efficiency in handling of petroleum imports thereby reducing demurrage expenses, enhancing security of supply of petroleum products and positively impact the pump price. 19. Early Oil Pilot Scheme Early Oil Pilot Scheme (EOPS) is a key strategic project under the Vision 2030 that involves exploiting and marketing its oil in small scale in order to test the international market for Kenyan crude oil and establish Kenya as an oil exporter. The project was expected to start by mid-2017 until mid-2019 and upon completion will involve trucking of crude oil from South Lokichar Fieldsto KPRL Mombasa by insulated and heated tanktainers for storage and onward export. The first shipment of the crude export. 20. Modification of Facilities in KPRL and KOT for Crude Oil Export In addition to the completed modification work at KPRL to enable receipt of crude oil at KPRL, additional work involving heat tracing and insulation of process pipework, installation of boilers, pumps and meters, modification of the existing KOT loading arms is ongoing to enable export of crude oil for the duration of the EOPS, which is until the crude oil pipeline is commissioned. 21. Develop Mombasa as an Oil and Gas Trading Hub This project was approved by Cabinet in 2013 as one of the 47 priority Public Private Partnership Projects. The initial feasibility study was done and approval to engage a transaction advisor given by the PPP Unit of The National Treasury and tendering for the same undertaken. Project partnership engagements were held between NOCK, KPA, KPC and Mombasa County. However, the projectis currently on hold awaiting further consultations. 21. Petroleum Retail Network Expansion As a measure of increasing reliable access, security of supply and cushioning the public against supply shocks, the government has registered a total of 1,700 retail petrol stations located in major towns and major highways with 110 of these retail stations being owned by National Oil Corporation. The government plans to increase the Corporation's market share to at least thirty 10 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 (30) percent. This will enable the Corporation to have a retail presence in every county headquarter in Kenya as well as in rural market centers and smaller towns across the country. Policy, Legal and Institutional Reforms During the MTP II period the sector undertook a number of Policy, Legal and Institutional reforms. They include: formulation of the National Energy and Petroleum Policy 2015; Petroleum Bill 2015 prepared, passed by the National Assembly and submitted to the Senate; Completion of a model Production Sharing Contract (PSC) in 2015 and approved by the Cabinet; preparation of the Petroleum Exploration, development and Production (Local Content) Regulations, 2014; Petroleum Road Transport Businesses Regulations and the Energy (Petroleum Information and Statistics) Regulations 2013. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 11 3.0 EMERGING ISSUES, CHALLENGES AND LESSONS LEARNT During the implementation of MTP Il, several issues emerged, challenges were encountered and lessons learnt. This will inform the implementation of programmes and projects for MTP Ill. 3.1 Emerging Issues Slowdown in investment in sector due to decline of international crude oil and other minerals prices. Insecurity which affects exploitation of resources in areas prone to attacks. Regional re-alignment which led to crude oil pipeline route adjustment and oil and gas importation and transportation through the Central Corridor 3.2 Challenges Land access and compensation causing project delays and increased cost. Inadequate financial resources during the initial stages of projects before their bankability is determined. High incidences of insecurity in project areas which affect exploitation and development of resources Inadequate technical skills and technical equipment in the sector. Maritime boundaries disputes hindering extractive activities. High community expectations in exploration and development which slow down project implementation. Inadequate data on oil and gas blocks, and other minerals to inform investment decisions . Inadequate legal and regulatory frameworks Constrained ullage due to the exponential expansion of Oil-marketing companies (OMCs) leading to delays in discharge of products from import vessels . Inadequate storage and infrastructure capacity for petroleum products. This has resulted in the country relying on a private Bulk LPG handling facility leading to high importation, handling costs translating to higher product prices. 3.3 Lessons Learnt Need to strengthen national and county governments collaboration and other stakeholders engagement at all levels of programme/project development. Need for strategic partnership in project financing, execution and skills transfer. Enhanced involvement of key local professionals in all phases of project implementation, including conceptualization, design, construction and commissioning to ensure capacity building and knowledge transfer. Need for a structured legal and strategic framework for managing community expectations. Need for a national oil and chemical spill contingency plan for the onshore and offshore exploration activities vi. Development and review of regulations to manage chemicals and hazardous waste from oil and mineral processes is necessary 12 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 Need for guidelines for development and rehabilitation to minimize loss of biodiversity, destruction of cultural heritage sites and sensitive natural habitats including wildlife migratory routes. There is need for enforcement and compliance to Climate Change Act 2016 on on levels of Green House Gases (GHGs) emission reduction. Enhanced capacity building in Counties in the extractive sector through partnerships with the national government, Technical, Vocational Education & Training institutions, Universities and investors Need to improve competitiveness and value addition of the minerals. Xi. Strengthening of linkages with other sectors with a coordinated approach in the implementation of the various flagship projects. The collaboration will entail capacity building with various technical institutions, environmental matters, occupational safety and health services concerns. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 13 4.0 PROGRAMMES AND PROJECTS FOR 2018-2022 Key Programmes and Projects to be implemented during the Third Medium Term Plan 2018-2022 are: 4.1 OilandGas During the MTP Ill period, the following programmes and projects will be implemented: (1) Exploration and Commercialization of Oil and Gas discoveries Drilling of Exploratory and Appraisal Wells whereby Twenty (20) exploratory and appraisal wells will be undertaken to ascertain the commercial viability of the resource. Further, 450 production and re- injection wells will be drilled. The programme will also entail Gas Exploration, Production and Utilization in orderto promote and facilitate investment opportunities in gas exploration, production and utilization in the country. A feasibility study was commissioned to undertake Floating Liquefied Natural Gas (FLNG) in Mombasa. The objective of the study was to asses; the commerciality of a FLNG fed power plant at the port city of Mombasa, the resulting implication on the cost of electricity, and the feasibility for an offshore LNG terminal and equity financing options for the required capital investment. This will be accomplished with the MTP period. The programme will also entail Finalization of Field Development Plan for South Lokichar. The objective of Field Development Plans (FDPs) is to give the best technical solutions for field optimization. FDPs comprise all activities and processes required to develop a field. These activities include: Environmental and social Impact Assessment; Geological and Geophysical modelling; Reservoir Characterization; Production Technology; Infrastructure plan and development; Well design and construction, completion design, surface facilities, and Economics and risk assessment. (2) Complete Early Oil Pilot Scheme (EOPS) Project The Early Oil Pilot Scheme (EOPS) is an initiative by the Government of Kenya (GOK) and the Kenya Joint Venture (Tullow Oil, Africa Oil Corporation and Maersk) to use the existing road infrastructure to transport crude oil from Lokichar to Mombasa for export. The key objectives for EOPS are to enable Full Field Development and establish Kenya as an oil exporter commencing with testing the international market for Turkana crude. Although the project is not generating profits, it is envisaged that the scheme would create an investment case that would capture the immediate non-monetary benefits of early oil for the key stakeholders involved. (3) Capacity Development for Oil and Gas In the MTPIII period, government through KEPTAP will enhance capacity of institutions in Petroleum sector through supporting training and implementation of the requisite policies and plans. These entail: Capacity Building and Field Development Planning; Implementation of Institutional Review Study; Procurement of an internationally recognized consultancy to review and ascertain the credibility of South Lokichar Field Development Plan (FDP) and development of local content policy and regulationsto govern local content in the oil and gas sector. (4) De-risking Exploration Acreage Enhancing attractiveness of the country's exploration blocks and reducing the cost to government in cost recovery component in Production Sharing Contracts (PSCs) is crucial. In implementing the programme, two (2) multi-client ventures surveys will be undertaken in the open acreage for data acquisition and Digitization of the National Data Centre (NDC) completed. 14 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 The government will undertake three (3) licensing bid rounds. The objective is to attract technically and financially robust companies to accelerate exploration through shortening exploration cycle and reduce overall cost of exploration especially in low oil price environment through acquisition and provision of sufficient and reliable data for revaluation. Availability of data will facilitate licensing rounds. (5) Construction of Lokichar-Lamu Crude Oil Pipeline. Following the discovery of crude oil in the Lokichar Basin in Northern Kenya, the Government will in partnership with the International Oil Companies develop the crude oil pipeline from Lokichar to Lamu for transportation of the oil for export and early monetization of the resource. The 840-km pipeline project will include the marine terminal and load out facility. (6) National Liquified Petroleum Gas (LPG) Enhancement Project (Mwananchi LPG project) The government will enhance the use of Liquefied Petroleum Gas (LPG) through the Mwananchi LPG Projectto reduce reliance on unclean soures of energy. To enhance usage of LPG as clean energy source, during the MTP Ill period the Government will promote LPG usage by increasing LPG per capita consumption from the two (2) Kg per person per yearto fifteen (15) kg. Five (5) million, 6 kg LPG cylinders will be purchased and distributed across the country in order to enhance LPG penetration from 10% to 70% in the plan period. In addition, over 40 mini LPG storage and filling plants (LPG skids will be installed to be operated by women and youth. (7) Enhancement of Petroleum Products Storage Capacity in Mombasa: Access to affordable, competitive, reliable, quality, safe and sustainable energy is key to the country's national development. In 2016 the demand for petroleum products was 5 million MT and is expected to increase to 7.06 million MT by 2022. Within the integrated petroleum supply infrastructure, the existing storage capacity is 989,000 m* comprising of 622,000 m’ at Kenya Pipeline Company/KOSF; 140,000 m’ within KPRL, 110,000 m’ within VTTI; 38,000 m’in Petrocity in Konza and 79,000 m’ in OMCs depots in Nairobi. These facilities provide 15 days stock cover for local demand. To ensure sufficient supply of petroleum products, additional storage tanks are under construction by KPC in Nairobi which will increase the capacity by 133,000 m’ and an additional 100,000 m’ will be made available in KPRL after conversion of the idle tanks for refined petroleum products. Completion of these projects during MTP Ill will therefore increase the overall storage capacity available to 1,222,000 m’. This will improve the stock days to thirty (30). KPC and KPRL entered into a lease agreement in March 2017 through which KPRL leased its facilities to KPC for purpose of carrying on and expanding the existing and new business lines. During MTP Ill, the idle storage tanks will be converted for white oil use. This will also involve integration of th facilities to the pipeline thereby expanding the oil and gas facilities. It will also position Mombasa as a regional oil and gas hub. The integration of facilities will result in additional ullage and efficiency in handling of petroleum imports, thereby reduce demurrage expenses, enhancing supply and positively impactingthe pump price. (8) Expansion of National Pipeline Network Bulk of petroleum products is still transported by road from the pipeline depots to various towns and markets. The government will undertake a pipeline expansion aimed at constructing spur lines/extending the pipeline to key towns. This will ensure that efficiency, environmental and safety benefits of pipeline transportation are spread throughout the country. A feasibility study will be finalized to inform and prioritize the pipeline expansion investments in the MTP III period. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 15 (9) Liquid Petroleum Gas (LPG) import and storage in Mombasa and Nairobi. The LPG project is aimed at ensuring availability and accessibility of LPG at cost effective prices to support promotion of use of LPG as a household fuel among the urban poor and the rural population and, enhance socio-economic development. A study on LPG demand in the country undertaken in 2013 indicated that under optimistic demand scenario, LPG demand could rise to 368,000 MT in year 2022. KNBS, indicated that demand for LPG in 2016 was 151,700 MT. The governmement provided a policy directive that all LPG consumed in the country be imported through Mombasa. The t existing 1,200 MT LPG facilities at KPRL will be enhanced to 20,000 MT and new bulk LPG import handling and storage facilities be integrated to the existing facilities. In addition, bulk LPG storage facilities will be developed in Nairobi. (10) Establishment of Centre of Excellence impacting in Oil and Gas: The government through Kenya Pipeline Company in collaboration with Southern Alberta Institute of Technology (SAIT) of Canada will fast track the establishment of a Centre of Excellence in Oil and Gas at the Morendat Institute of Oil & Gas (MIOG). The Centre's objective will be to bridge the skills gap and, build capacity in pipeline management, Oil and Gas operations and maintenance for Kenya and the region. (11) Development of a Regional Hub for Upstream Petroleum Services The growing scope of petroleum exploration activities presents an opportunity for the country to become a regional hub for petroleum upstream services.As part of developing a hub in the region and enhancing local content development, the government will set up an Upstream Drilling Service Unit with the objective of ensuring a permanent rig presence which will result in lower mobilization costs and rig turnaround time. This will be implemented through Foreign Direct Investment (FDI) and local content. The government will put measures to attract FDI related to drilling services while National Oil Corporation will drive local content through local companies including those in joint ventures (JVs) with international firms. In the process, there will be technology transfer and development of national capabilities that would position the country as a regional hub. The following projects will also be undertaken: 11.1 National oil and gas Seismic Processing Centre A National Seismic Processing Centre will be set up in Nairobi to provide specialized seismic data processing to oil and gas exploration companies operating locally and within the region thus reducing costs and turnaround time. 11.2 Geochemical and Petro-physical laboratory A geochemical and petrophysical laboratory in Nairobi will be set up in the plan period of 2018- 2022. The laboratory will offer a wide range of analytical services to support oil and gas industry both locally and regionally and help build local expertise in geochemical analysis. (12) Quality Assurance of Petroleum Products. Proliferation of substandard petroleum dispensing and storage sites pose environment health and safety risks resulting in dumping of export products in to the local market. To address this challenge, monitoring of petroleum quality standards be intensified to ensure compliance, prevent diversion of products meant for export into the local market and eradicate illegal LPG refilling. This will involve regular spot checks within petroleum stations, depots and LPG filling plants. Dealers and operators found culpable will be prosecuted as per the law. 16 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 4.2 Other Mineral Resources In the Other Mineral Resources subsector, the following flagship Programmes and Projects will be implemented by the during the MTP Ill include: (1) Geological Mapping, Mineral Exploration & Evaluation: The programme will entail detailed systematic geological mapping, surveys, exploring and the evaluation of minerals in Kenya. Emphasis will however be given to the precious and base metals, gemstones, and construction and industrial minerals. to propel the mining sector that have been earmarked to propel the mining sector the programme has the following projects. 1.1 Nationwide Airborne Geophysical Survey. project will entail a statematic collection of geophysical data by aircraft and covering the whole country, a one off exercise that gives seamless geology of the country and carrying out airborne geophysical surveys for the whole of the country carrying out airborne geophysical surveys to establish potential areas of mineralization. 1.2 Nationwide Geological Survey Ground Follow-up New Ground geosurvey follow up in areas where high quality geophysical data sets have become available ground magnetics radiometrics, electrical resistivity etc; geological and mineral mapping, core drilling. 1.3 Marine Geophysical survey, Geophysical survey of Kenya Marine territory including the continental shelf using various geophysical techniques to collect data and information on geology and mineral resources of Kenya Marine territory including the continental shelf. (2) Internationally Accredited Mineral Certification Laboratory (IAMCL) The project entails procurement of specialized laboratory equipment and ensure geo-technical laboratory is incorporated in the IAMCL. In addition, the accreditation process will be pursued. (3) Establishment of the Geological Data Bank The project will entail equipping and commissioning a repository centre to host geological data and information. This will generate additional revenues to government as the data and information on known mineral quantities will be accessed ata cost (4) Enhancing Mining for Development: The programme will propel the country to realize economic growth from minerals and lead to creation of wealth and employment. This programme will undertake the following projects; 4.1 Mineral Value Addition Centres: This will entail equipping and commissioning the Gemstone Value Addition Centre in Taita-Taveta County, construction and equipping of Granite Processing Plant in Vihiga County; Gold Refinery in Kakamega County; and Gypsum Products Manufacturing Plant in Garissa/Tana River County, mineral Promotion and Investment, minerals and Metals Commodity Exchange and establishment of an African Mineral Development Centre. 4.2 Mineral Promotion and Investment: This project aims to market Kenya as a mining and investment destination promoting Kenyan gems and minerals in international trade fair and exhibitions. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 17 4.3 Minerals and Metals Commodity Exchange: The project will entail establishment of commodities exchange to facilitate mineral trading. 4.4 African Mineral Development Centre: A bid was floated to the African Union for Kenya to host the African Mineral Development Centre to spearhead and coordinate development of policies to govern the extractive sector. Kenya expects to become the African Mineral Research Center thus improving the country's overall image to the investors. (5) Capacity Building of Artisanal and Small Scale Miners (ASM): The programme has four projects mainly: Formalization of Artisanal and Small-Scale Miners,Monitoring of mining and quarrying activities, prepare inventory and zoning of areas with construction materials and establishment of a National Mining Institute. The Institute will provide relevant middle and high expertise in the mining sector. 4.3 Other Programmes and Projects 1) Security of Supply of Petroleum Products: The project will enhance storage capacity of petroleum products from 989,000 m’ to 1,222,000 m’. This will be achieved through construction of additional storage tanks in Nairobi (133,000 M’) and conversion of existing crude oil tanks at Kenya Petroleum Refineries Limited (KPRL) to white oil service (100,000 M’). 2) Environmental and Social Impact Monitoring, Evaluation and Reporting: Trends in growth of Oil and Mineral Resources Sector demonstrate potential for increased impacts on the environment. Many exploration sites support biodiversity among other natural resources. During the MTP Ill therefore, environmental monitoring on the impacts of exploration of oil and other minerals resources will be undertaken. 2.1 Effective management of the environment and social footprints: The Sector will continue to implement existing laws and regulations such as the Environment Management and Co-ordination Act Chapter 387 of the Laws of Kenya, EMCA CAP 387, Section 57A and 58(1); Regulations on Environment Impact Assessment, Air and Water Quality and Waste Management. In addition certain intervention will be undertaken to such as reduction of greenhouse gases emissions. 2.2 Implementation of Climate Change Act, 2016: This is achieved through enforcement of the Climate Change Act, 2016 and the Environment Management and Coordination (Air Quality) Regulations, 2015 by NEMA. This will entail: regulating, enforcement and monitoring compliance on levels of Green House Gases (GHGs) emission reduction, and integrate climate risk and vulnerability assessment into all forms of assessment with lead agencies. 3) Natural Resource Mapping: The natural resource mapping in the country is important to enhance planning and decision making. This programme will comprise of two projects; 3.1. Rangeland Resource Inventory, Mapping and Monitoring The objective of this project is to generate data/information on livestock and wildlife population including environment/ecological attributes in the Kenya Rangelands for planning conservation and management. Under this program, aerial survey of rangeland resources will be assessed, mapped and monitored. 18 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 3.2 Digital Spatial Land Use and Land Cover Mapping The project aims to strengthen and improve national and county spatial planning and land based resource management systems; and, to strengthen and upgrade capacities in land use and land cover mapping. This project has been on going and during the MTP Ill period it will target three counties for implementation and will also cover urban land use in some specific areas. 4) Geohazards and Engineering Geology This project will entails mapping and documentation of geoharzard areas in the country, development of a National Geoharzard Atlas and setting up of a modern geotechnical laboratory The project will faciliate collection of the requisite data for National Geo-hazards atlas. The data generated will be utilized for disaster preparedness and mitigation and, monitor geo-hazard prone areas in the country. 5) Kenya National Seismological Network The objective of establishing a National Seismological Network is to enable monitoring of earthquakes within Kenya and the region. This will enable the Government to provide accurate and up to date data and information on local and regional seismicity, preparation of seismic zoning maps, seismic risk maps and publications. This will entail establishment of a National Seismological Network of stations to monitor both Local and global seismicity (earthquake activity) and for receiving and processing of seismological data in the country. This will entail building, equipping and operating the seismic receiving and processing center. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 19 5.0 POLICY, LEGAL AND INSTITUTIONAL REFORMS Successful implementation of the outlined programmes and projects requires that requisite policy, legal and institutional reforms are put in place. This chapter outlines reforms that will provide an effective plan implementation framework for successful sustainable exploitation of oil,gas and othe mineral resources. The Medium Term Plan III will focus on reforms aimed at enhancing service delivery in the sector. The reforms are: 5.1 Policy Reforms Implementation of the National Energy and Petroleum Policy. Implementation of the Mining and Mineral Policy; Development of Local Content Policy and Regulations; Development of rules and regulations for the establishment of metals and minerals commodity exchange; and Development of the National Extractive Policy. 5.2 LegalReforms Enactment and implementation of Petroleum (Exploration, Development and Production) Bill, 2015: e Establishment of the Upstream Petroleum Regulatory Authority to regulate petroleum operations in Kenya; e Establish an upstream advisory committee to advise government on petroleum exploration and development matters; Establish an upstream petroleum laboratory; Development and review of relevant Regulations. i. Enactment of the Energy Bill 2015 e Establishment of the Energy and Petroleum Institute as a Centre of excellence; e Establishment of the Energy and Petroleum Tribunal to hear and determine disputes arising from the decisions of the Energy Regulatory Authority;. e Acquisition of KPRL by KPC, and e Review and restructure of National Oil Corporation of Kenya to expand the petroleum upstream function. iii. Development of the outstanding seven (7) Regulations to operationalize the Mining Act, 2016. 5.3 Institutional Reforms Strengthening of Mineral Audit Unit: to enhance revenue collection and determine the mineral royalty rates; Establishment of National Mining Corporation: The Corporation will act as an investment arm of the national governmentin the mining sector; Establishment of Mineral Royalty Fund: to provide structured disbursement of mineral royalty to counties and targeted communities and Upgrade of Online Transaction Mining Cadaster Portal: to provide efficient licensing concession management that promote accountability and transparency 5.4 Cross Cutting Reforms In addition to the Policy, Legal and Institutional Reforms, the sector will endear community participation. This will entail: 20 VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 Community Involvement in Oil and Other Minerals Sector Projects and Programmes: This will involve the implementation of provisions of the Public Participation Bill, 2016, once enacted, will enhance local communities’ involvement in projects and programmes. Land Acquisition and Compensation: The sector will implement the Land (Amendment) Act, No. 28 of 2016 which provides procedures for compensation to affected person during compulsory acquisition of land for the sector. Environmental and Social reforms including integration of Climate Change Act 2016: The National Environmental Management Authority (NEMA) in collaboration with the sector will spearhead implementation of the following environmental management reforms: e Development of environmental regulations (onshore and offshore) for the Oil and Gas sector (upstream, midstream and downstream). e Development of onshore and offshore hydrocarbon escape prevention, preparedness and response capacity e Review of Environmental Standards and Develop Procedures, Standards and processes related to Hazardous Waste Management and Gas flaring. e Development of Environmental Conservation Plans for different ecosystems like marine, forests, Game reserves in areas with oil blocks e Develop and enforce air quality laws and regulations in collaboration with relevant agencies. e Update and enforce the specifications and standards for supply of clean fuels. Mainstreaming Affirmative Action: The sector commits to promote equity and gender parity in the management of resources and programmes/projects implementation Ratification of International Treaties, Conventions and Bilateral Agreements: The country is obligated to align its activities to promote implementation of International Treaties, Conventions and Bilateral Agreements such as the SDGs, Agenda 2063, Paris Agreement on Climate Change among others. The sector commits to ensure conformity to the international agreed exploration and exploitation standards of oil and other minerals resources. VISION 2030 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 21 iw) pe) ANNEX 1: IMPLEMENTATION MATRIX Goal: Enhance commercialisation of discoveries, develop the requisite skills and infrastructure for production in the oil, gas and other minerals sector, and improve access to competitive, reliable and secure supply of petroleum products Strategic Objectives: Upscale Data collection, collation and analysis; enhance effective partnerships in data exchange and access to newtechnology in orderto reduce costs in exploration; skills developmentand enhancement of local expertise; increase commercial production of oil and other mineral resources; development of the requisite infrastructure and facilities; Promote exploration and development investments in the oil, gas and other mineral resources sector while conserving the environment and, enhance access to competitive, reliable and secure supply of petroleum products. Programmes Objectives Expected Performance Implementing Time Source Total Cost Budget (in Kshs million) VISION 2030 /Projects Outcomes/Outputs Indicators Agencies Frame of Funds 2018/ 2019/ 2020/ 2021/22 2022/ 19 20 21 23 OIL AND GAS Exploration and Increased availability Petroleum Exploration Blocks No. of petroleum SDP 2018- GoK 5300 752 950 1000 1100 1500 Commercialization of and access to oil marketed Nationally and Exploration Blocks 2022 the Oil and Gas and gas Internationally. marketed. discoveries Complete Early Oil Pilot To enable export of 2000 bpd of crude oil exported 2000 bpd of crude KPC/KPRL/ 2018-19 | GoK 3165 170 180 180 1320 1315 Scheme crude oil for the oil delivered. 10Cs and duration of the EOPS 10Cs Capacity Development e Organizations in Oil and e Numberof SDP, NT, 2018- IDA/ 3750 996 930 840 840 144 for Oil and Gas: Kenya To enhance Capacity Gas sector capacity officers trained MOITC 2022 GAC Petroleum Technical on 21 Beneficiary enhanced under KEPTAP. Assistance Project organization in Oil e Kenya National Petroleum e A National (KEPTAP) and Gas sector Master Plan (KNPMP) Petroleum developed Master Plan Automation of the To design study for A Modernized Petroleum Automated NOC/ KEPTAP 2019 IDA/ 50 50 Petroleum Data automated petroleum Data Ce ntre Petroleum Data GAC SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES Inventory system cadastral system Centre Construction of To Construct Crude oil Pipeline Lokichar-Lamu Pipeline 2018- GoK 9700 215 230 280 4490 4485 Lokichar-Lamu Crude infrastructure for constructed Crude Oil Pipeline Company once 2022 Oil Pipeline transportation and established. export of crude oil 2018 - 2022 National Liquid To enhance LPG Promotion of use of LPG as a No. of cylinders SDP /NOC 2018- GoK 7900 2496 2666 2676 62 Petroleum Gas (LPG) uptake clean fuel alternative to distributed 2021 Enhancement Project biomass among the low ‘Mwananchi LPG income households project’ Programmes Objectives Expected Performance Implementing Time Sour | Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame ce oj Fund s 2018/ 2019/ 2020/ 2021/22 2022/ 19 20 21 Enhancementof Increase capacity for Additional Storage Capacity 100,000m? KPC/KPRL 2018- 1000 1,000 Petroleum Products import storage and additional white 2019 Storage Capacity in ad nal ullage. oil storage at Mombasa Mombasa To ensure ___ that Pipeline extension and/or Pipeline network KPC 2020- KPC 3,000 2,800 Expansion of Pipeline 5800 pipeline spur line constructed. in Km (to be 2022 VISION 2030 Network transportation is determined) spread throughout the country Liquefied Petroleum To provide capacity Importhandling and storage 20,000MT LPG KPC/KPRL 2018- KPC 3000 1,500 1,500 Gas (LG) Import and for importation of facilities constructed Importand 2020 Storage in Mombasa bulk LPG storage facility in Mombasa LPG Bulk Storage To provided capacity Bulk LPG storage KPC 2018- KPC 2000 1,000 1,000 Facilitiesin Nairobi for Storage of bulk Nairobi constructed facilities 2020 LPG. Establish Centre of To build capacity in SI ed manpower on oil No of Skilled KPC 2018- KPC 3360 1,300 760 500 400 400 Excellence in Oil and Pipeline and Gas Manpower 2022 Gas management, Operations and Maintenance National oil and gas To provide Operational Seismic Operational NOC 2018- NOC 315 115 50 50 50 50 Seismic Processing specialized upstream Processing Center installed Seismic 2022 Centre services Processing Center Geochemical and To provide Operational Geochemical Operational NOC 2018- WV 700 300 100 100° 100 100 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES Petrophysical specialized oil and and Petrophysical laboratory Geochemical and 2022 laboratory gas upstream Petrophysical services laboratory Quality Assurance of To effectively Quality and secure petroleum No. of samples of SDP/ERC 2018- GoK 333 33 75 75 75 75 2018 - 2022 Petroleum Products monitor and enforce products marketed nationally petroleum 2022 quality assurance and regionally products tested standards to alleviate dumping and adulteration of petroleum products 23 24 Programmes Objectives Expected Performance Implementing Time Sour | Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame ce 0 Fund s 2018/ | 2019/ | 2020/ 2021/22 2022/ 19 20 21 23 OTHER MINERAL RESOURCES Nationwide Airborne To identify areas of Geological data and Per cent of the SDM 2018- GoK 9000 0 1320 1320 3180 3180 Geophysics survey mineral potential. information on potential country 2022 mineralization mapped/surveye VISION 2030 d Nationwide Geological To ascertain the Geological data and Per cent area SDM 2021- GoK 1500 800 700 Ground Follow-up occurrence of information on minerals, mapped 2022 survey minerals in the quality and quantity of mineralized areas minerals revealed by airborne Marine Geophysics To conduct Data and Information on Per cent of the SDM 2021- GoK 1.0 500 500 Survey geophysical survey geology and mineral marine area 2022 of Kenya’s marine resources mapped/surveye territory d Geological Mapping, To carry out detailed Enhanced data and Area in Km2 SDM 2018- GoK 1000 200 200 200 200 200 Mineral Exploration and systematic information on geology and mapped. 2022 Evaluation geological mapping mineral occurrences No. of reports and surveys, exploration and evaluation of minerals in Kenya International Accredited To provide quality A modern Mineral Per cent ISO SDM 2018- GoK 780 103 103 443 65 66 Laboratory testing services in Certification Laboratory. 17025 Certified 2022 Kenya and in the laboratory region Geological Data Bank To create a National A well-equipped Geological % of geological SDM 2018- GoK, 386 150 100 99 19 Data Repository for data and information bank data and 2022 DFID geological data information SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES andand information digitized Geohazard and To map and monitor Delineation of geo-hazards National geo- SDM 2018- GoK 40 20 20 engineering geology geo-hazards and and climate change hotspots hazard atlas 2022 climate change prone areas 2018 - 2022 hotspots prone areas Kenya National To monitor both local Earthquake Risk mitigation Operational SDM 2021- GoK 1500 750 750 Seismological Network and global seismicity Seismology 2022 (intensity of Centre and earthquake) Network Gemstone Value To add value to value addition of gemstone Gemstone Value SDM 2018- GoK 95 40 35 10 Addition gemstone through added in Ksh 2022 processing of raw gemstone Programmes Objectives Expected Performance Implementing Time Sour Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame ce o Fund s 2018/ 2019/ 2020/ 2021/22 2022/ 19 20 21 Granite Processing To add value to granite processed Granite SDM 2018- 200 50 100 37 Plant, Vihiga granite through Processing Plant 2022 processing of raw VISION 2030 granite Gold Refinery, To add value to gold Gold refined Gold Refinery SDM 2020- GoK 200 VISION 2030 Kakamega County through processing 2022 of raw gold Gypsum Products To add value to Gypsum processed Gypsum SDM 2020- GoK 250 100 150 processing Plants in gypsum in Garissa processing 2022 Garissa and Tana River and Tana Athi Plants through processing Mineral Promotion and To market Kenya as Minerals investment Capital inflows in SDM 2020- GoK 1900 950 950 Investment a mining and Promoted Ksh 2022 investment destination Rangeland Resource To Generate data on well managed rangelands Technical reports SDM 2020- GoK 239.4 139.4 100 Inventory, Mapping and livestock/wildlife and conservation of the (maps and 2022 Monitoring population, wildlife statistics). distribution and the SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 associated environment/ecologi cal attributes in the Rangelands for planning, conservation and management Digital Spatial Land Use To strengthen and Strengthened national and Digital spatial SDM and 2018- GoK 420 200 220 and Land Cover upgrade capacities in county spatial planning and photographic County 2022 Mapping land use and land through skilled manpower in land use and governments cover mapping land use and land cover land cover maps mapping and Geo- database Artisanal and Small- To formalize and Legal operations of artisanal No. of artisanal SDM 2018- GoK 335 200 135 SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 scale Miners support ASM and small scale miners and small scale 2022 formalization in Kenya miners formalized Monitoring of mining To monitor Compliance and Reports on SDM 2018- GoK 650 300 350 and quarrying activities compliance with and enforcementof Explosives compliance with 2022 enforcement of Act and enforcement 25 Explosives Act of Explosives 25 Laws 26 26 Programmes Objectives Expected Performance Implementing Time Sour Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame ce o Fund s 2018/ | 2019/ | 2020/ 2021/22 2022/ 19 20 21 23 Inventorying and zoning To zone areas with Zoned areas with National atlas for SDM 2021- GoK 250 100 150 of areas with construction construction materials construction 2022 construction materials materials in all 47 materials VISION 2030 counties Institutional reforms Mineral Audit Unit To determine royalty Enhanced revenue collection Revenue SDM 2018- GoK 355 90 90 140 35 VISION 2030 rates and = ensure collected in Ksh 2021 royalty payments National Mining To act as_ the Increased investmentin the Capital inflows in SDM 2021- GoK 1810 1000 810 Corporation investment arm of country Ksh 2022 the National Government in the mining sector Mineral Royalty Fund To provide structured Transparency and Royalty SDM The 2021- GoK 450 200 250 disbursement of accountability Disbursed in Ksh National 2022 mineral royalties to to Mining Treasury counties and Counties and targeted Communities communities SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 Online Transaction To provide efficient Efficiency, transparency and No. of licenses SDM 2018- GoK 348 50 100 185 13 Mining Cadastre Portal licensing and accountability in licensing issued Online 2022 concession management that promotes transparency and accountability National Mining To develop middle Skilled technical person on No. of personnel SDM 2021- GoK 710 400 310 Institute and high level geology related field trained MoEducation, 2022 expertise in mining University of sector Nairobi, Taita-Taveta University. Minerals and Metals To provide platform Increase investmentin the No. of Minerals SDM 2021- GoK 450 250 200 Commodity Exchange for mineral country and Metals NSE 2022 commodities trading traded CBK SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 KRA African Minerals Host the AMDC for Research and development AMDC SDM 2018- GoK 74 Development Center research of minerals 2021 (AMDC) development for the AMV GRAND TOTAL 70217.4 10575 | 10563 | 11062 20778.4 17239 ANNEX 2: MONITORING AND EVALUATION MATRIX

ANNEX 2: MONITORING AND EVALUATION MATRIX Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame 2018/19 2019/20 2020/21 2021/22 2022/23 VISION 2030 OIL AND GAS Commercialization of Increased availability [Petroleum Exploration Blocks |No. of petroleum MoEP 2018- 22 22 22 VISION 2030 the Oil and Gas and access to oil marketed Nationally and Exploration Blocks 2022 discoveries and gas Internationally. marketed. Complete Early Oil Pilot To enable export of 2000 bpd of crude oil exported 2000 bpd of crude KPC/KPRL/ 2018-19 2000 Scheme crude oil for the loil delivered. 10Cs duration of the EOPS Capacity Development To enhance Capacity Organizations in Oil and Number of MoEP, NT, 2018- 310 320 200 for Oil and Gas: Kenya on 21 Beneficiary Gas sector capacity Officers trained MOITC 2021 SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 Petroleum —_ Technical organization in Oil enhanced under KEPTAP. Assistance Project and Gas sector Kenya National Petroleum Petroleum MoEP 2018- Petroleum (KEPTAP) Master Plan (KNPMP) Sector Master 2019 Sector Master developed plan Plan Automation of the To design study for A Modernized Petroleum Automated NOC/ KEPTAP 2019- Commence Automated Petroleum Data automated petroleum Data Centre Petroleum Data 2020 setting up o Petroleum Inventory system cadastral system Centre the data centre Data Centre Construction of To Construct Crude oil Pipeline % of Lokichar- Pipeline 2019- Complete 30 60 80 100 Lokichar-Lamu Crude infrastructure for constructed Lamu Crude Oil Company (once 2022 Preliminary Oil Pipeline transportation and Export Pipeline established). works export of crude oil constructed National Liquid To enhance LPG Promotion of use of LPG asa No. of cylinders MOEP/NOC 2018- 800,000 800,000 800,000 900,000 Petroleum Gas (LPG) uptake clean fuel alternative to distributed 2021 Enhancement Project biomass among the low SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 ‘Mwananchi LPG income households project Enhancementof Increase capacity for Additional Storage Capacity 100,000m? KPC/KPRL 2018- Tanks Operationa Petroleum Products import storage and additional white 2019 Conversion lization Storage Capacity in additional ullage. oil storage at and 27 Mombasa Mombasa rehabilitation 27 works. 28 28 Programmes Objectives Expected Performance Implementing Time Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame 2018/ 2019/ | 2020/ | 2021/22 | 2022/ 19 20 21 23 Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame VISION 2030 2018/19 2019/20 2020/21 2021/22 2022/23 VISION 2030 To ensure that Pipeline extension and/or Pipeline network KPC 2020- Prioritize Undertake e Secure Construction | Complete Expansion of Pipeline pipeline spur line constructed. in Km (to be 2022 projects and FEED and financing and Network transportation ESIA _ for is determined) obtain project e Acquire commissio spread throughout approvals priority Land n atleast 1 the country project e Comme No. nce project. works Liquefied Petroleum To provide capacity Import handling and storage 20,000MT LPG KPC/KPRL 2018- e Secure Commenc Completion Gas (LG) Import and for importation of facilities constructed Import and 2020 land e works and Storage in Mombasa bulk LPG storage facility in e Undertake Commission, Mombasa ESIA and ing of the projects LPG Bulk Storage To provided capacity Bulk Storage facilitiesin Bulk LPG storage KPC 2018- e Procure EPG Facilitiesin Nairobi for Storage of bulk Nairobi constructed facilities 2020 Contractor LPG. e Commence SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 works Establish Centre of To build capacity in 350 385 623 865 1,012 Skilled manpower on oil No of Skilled KPC 2018- Excellence in Oil and Pipeline and Gas Manpower 2022 Gas management, Operations and Maintenance National Oil and Gas To provide Operational Seismic Operational NOC 2018- 100% Seismic Processing specialized upstream Processing Center installed Seismic 2019 (Operational Centre services Processing Center) Center Geochemical and To provide Operational Geochemical Operational NOC 2018- 50% 75% 100% Petrophysical specialized oil and and Petrophysical laboratory Geochemical and 2021 (Operation laboratory gas upstream Petrophysical al SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 services laboratory laboratory) Quality Assurance of To effectively Quality and secure petroleum No. of samples of SDP/ERC 2018- 3,000 6,000 6,000 6,000 6,000 Petroleum Products monitor and enforce products marketed nationally petroleum 2022 quality assurance and regionally products tested standards to alleviate dumping and adulteration of Programmes Objectives Expected Performance Implementing Time Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame 2019/ 2020/ 2021/22 2022/ 20 21 23 Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame VISION 2030 2018/19 2019/20 2020/21 2021/22 2022/23 VISION 2030 petroleum products OTHER MINERAL RESOURCES Nationwide Airborne To identify areas of Geological data and Per cent of the MoM 2018- 25 50 75 100 Geophysics survey mineral potential. information on potential country 2022 mineralization mapped/surveye d Nationwide Geological To ascertain the Geological data and Per cent area SDM 2020- 10 20 30 40 Ground Follow-up occurrence of information on minerals, mapped 2022 survey minerals in the quality and quantity of mineralized areas minerals SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 revealed by airborne Marine Geophysics To conduct Data and Information on Per cent of the SDM 2021- 25 50 Survey geophysical survey geology and mineral marine area 2022 of Kenya’s marine resources mapped/surveye territory d Geological mapping, To carry out detailed Enhanced data and Area in Km2 SDM 2018- 730 Km2 730 730 730 730 mineral exploration and systematic information on geology and mapped. 2022 evaluation geological mapping mineral occurrences and surveys, exploration and evaluation of minerals in Kenya International Accredited To provide quality i) A modern Mineral Per cent ISO SDM 2018- 10 40 70 100 Laboratory testing services in Certification Laboratory. 17025 Certified 2022 Kenya and in the laboratory region SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 Geological Data Bank To create a National A well-equipped Geological % of geological SDM 2018- 10 40 70 100 Data Repository for data and information bank data and 2022 geological data and information information digitized Geohazards and To map and monitor Delineation of geo-hazards National geo- SDM 2021- engineering geology geo-hazards and and climate change hotspots hazard atlas 2022 29 climate change prone areas 29 hotspots prone areas 30 30 Programmes Objectives Expected Performance Implementing Time Sour Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame ce 0 Fund s 2018/ 2019/ 2020/ 2021/22 2022/ 19 20 21 23 Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame VISION 2030 2018/19 2019/20 2020/21 2021/22 2022/23 VISION 2030 Kenya National To monitor both local Earthquake Risk mitigation Operational SDM 2021- Seismological Network and global seismicity Seismology 2022 (intensity of Centre and earthquake) Network Gemstone Value To add value to value addition of gemstone Gemstone Value SDM 2018- 10M 20M 35M 50M 100M Addition gemstone through added in Ksh 2022 processing of raw gemstone Granite Processing To add value to granite processed Granite SDM 2021- Plant, Vihiga granite through Processing Plant 2022 processing of raw granite Gold Refinery, To add value to gold Gold refined Gold Refinery SDM 2021- SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 Kakamega County through processing 2022 of raw gold Gypsum Products To add value to Gypsum processed Gypsum SDM 2020- processing Plants in gypsum in Garissa processing 2022 Garissa and Tana River and = Tana_ Athi Plants through processing Mineral Promotion and To market Kenya as Minerals investment Capital inflows in SDM 2018- 4Bn 10Bn 12Bn 15Bn Investment a mining] an Promoted Ksh 2022 investment destination Rangeland Resource To Generate data on well managed rangelands Technical reports SDM 2018- Inventory, Mapping and livestock/wildlife and conservation of the (maps and 2022 Monitoring population, wildlife statistics). distribution and the associated environment/ecologi SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 cal attributes in the Rangelands for planning, conservation and management Digital Spatial Land Use To strengthen and Strengthened national and Digital spatial MoM and 2018- and Land Cover upgrade capacities in county spatial planning and photographic County 2022 Mapping land use and land through skilled manpower in land use and governments Programmes Objectives Expected Performance Implementing Time Total Cost Budget (in Kshs million) /Projects Outcomes/Outputs Indicators Agencies Frame 2018/ | 2019/ | 2020/ 2021/22 | 2022/ 19 20 21 23 Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame VISION 2030 2018/19 2019/20 2020/21 2021/22 2022/23 VISION 2030 cover mapping land use and land cover land cover maps mapping and Geo- database Artisanal and Small- To formalize and Legal operations of artisanal No. of artisanal SDM 2018- 100 200 500 1000 1500 scale Miners support ASM and small scale miners and small scale 2022 formalization in Kenya miners formalized Monitoring of mining To monitor Compliance and Reports on SDM 2018- and quarrying activities compliance with and enforcementof Explosives compliance with 2022 enforcement of Act and enforcement Explosives Act of Explosives Laws Inventorying and zoning To zone areas with Zoned areas with National atlas for SDM 2021- SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 of areas with construction construction materials construction 2022 construction materials materials in all 47 materials counties Institutional Reforms Mineral Audit Unit To determine royalty Enhanced revenue collection Revenue SDM 2018- 1.5Bn 2.0Bn 2.5Bn 3.0Bn 3.5Bn rates and = ensure collected in Ksh 2022 royalty payments National Mining To act as_ the Increased investmentin the Capital inflows in SDM 2021- 1Bn 2Bn 4Bn 5Bn Corporation investment arm of country Ksh 2022 the National Government in the mining sector Mineral Royalty Fund To provide structured Transparency and Royalty SDM The 2020- 3M 3M 3M 4M disbursement of accountability Disbursed in Ksh National 2022 SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022 mineral royalties to to Mining Treasury counties and Counties and targeted Communities communities Online Transaction To provide efficient Efficiency, transparency and No. of licenses SDM 2018- 200 200 200 200 Mining Cadastre Portal licensing and accountability in licencing issued Online 2022 31 concession 31 management __ that 32 32 Programmes Objectives Expected Performance Implementing Time Yearly Targets /Projects Outcomes/Outputs Indicators Agencies Frame 2018/19 2019/20 2020/21 2021/22 2022/23 promotes transparency and accountability VISION 2030 National Mining To develop middle Skilled technical person on No. of personnel SDM 2021- 100 100 100 100 Institute and high level geology related field trained MoEducation 2022 VISION 2030 expertise in mining University of sector Nairobi Taita-Taveta University Minerals and Metals To provide platform Increase investmentin the No. of Minerals SDM 2020- Commodity Exchange for mineral country and Metals NSE 2022 commodities trading traded CBK KRA African Minerals Host the AMDC for research and developmentof AMDC SDM 2021- Development Center research minerals 2022 (AMDC) development for the AMV SECTOR PLAN FOR OILAND OTHER MINERAL RESOURCES 2018 - 2022 SECTOR PLAN FOR OIL AND OTHER MINERAL RESOURCES 2018 - 2022