{"id":112417,"date":"2026-02-12T11:01:24","date_gmt":"2026-02-12T08:01:24","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/business\/?p=112417"},"modified":"2026-02-12T10:55:02","modified_gmt":"2026-02-12T07:55:02","slug":"oil-pilot-exposed-revenue-gaps-warns-controller-of-budget","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/business\/2026\/02\/oil-pilot-exposed-revenue-gaps-warns-controller-of-budget\/","title":{"rendered":"Oil pilot exposed revenue gaps, warns Controller of Budget"},"content":{"rendered":"<p><strong>NAIROBI, Kenya, Feb 11 &#8211; Controller of Budget Margaret Nyakang\u2019o has warned that Kenya\u2019s early oil pilot schemes exposed major governance and revenue management gaps that must be addressed before full-scale crude exports begin.<\/strong><\/p>\n<p>In a report on crude oil export strategies from the Lokichar Basin in Turkana, Nyakang\u2019o said while the pilot phase offered key lessons on logistics, community engagement and technical readiness, it also revealed weaknesses in transparency, accountability and oversight.<\/p>\n<p>She cited limited disclosure of Production Sharing Contracts (PSCs), weak monitoring of the five percent royalty allocated to local communities, and the absence of clear guidelines on how petroleum proceeds should be accounted for and spent.<\/p>\n<p>Nyakang\u2019o proposed that community funds be managed by a legally constituted local Board of Management to prevent misuse.<\/p>\n<p>The Controller of Budget also flagged the lack of a legal framework to restrict the use of oil revenues for recurrent expenditure and called for clarity in law on her office\u2019s mandate to authorise withdrawals from petroleum funds, warning that failure to seal these loopholes could undermine long-term sustainability and public trust.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In a report on crude oil export strategies from the Lokichar Basin in Turkana, Nyakang\u2019o said while the pilot phase offered key lessons on logistics, community engagement and technical readiness, it also revealed weaknesses in transparency, accountability and oversight.<\/p>\n","protected":false},"author":12320,"featured_media":112429,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,687],"tags":[9030,15169,934,26298,26299,9027],"coauthors":[700],"class_list":["post-112417","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kenya","category-top-stories","tag-controller-of-budget","tag-exposed","tag-featured","tag-oil-pilot","tag-revenue-gaps","tag-warns"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Oil pilot exposed revenue gaps, warns Controller of Budget - Capital Business<\/title>\n<meta name=\"description\" content=\"In a report on crude oil export strategies from the Lokichar Basin in Turkana, Nyakang\u2019o said while the pilot phase offered key lessons on logistics, community engagement and technical readiness, it also revealed weaknesses in transparency, accountability and oversight. 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