Lokichar Residents Threaten to Stop Oil Production Over Compensation and Oil Revenue Disputes

Residents of Lokichar in Turkana County have vowed to oppose oil operations unless the government addresses their demands for compensation for land and a fair share of revenue from the petroleum project.

The dispute comes as Kenya prepares to resume oil production in the South Lokichar Basin, with the government targeting the first oil by December 2026.

Affected residents say their concerns over land acquisition and compensation must be resolved before the project proceeds. They fear that oil development could take place on their ancestral land without adequate payment for the property and livelihoods affected.

Community elders have warned that they will not allow oil extraction to proceed until their grievances are addressed. They are also demanding clarity on how the local community will benefit financially from the natural resource discovered in the area.

The compensation dispute has persisted for years, with families whose land is earmarked for compulsory acquisition seeking fair payment before they are displaced. The National Land Commission is responsible for matters involving land acquisition and compensation.

The National Gender and Equality Commission recently reminded residents that compensation should reflect the value of the land affected by development. It also urged communities to engage in discussions about their share of petroleum revenue.

Under Kenya’s Petroleum Act, 2019, the sharing of petroleum profits includes allocations for the national government, county government and local communities. However, residents have raised concerns about how the arrangements will work in practice and whether the benefits will reach those directly affected by oil operations.

Gulf Energy, which took over the South Lokichar oil assets, is preparing to advance the project, with initial production targeted at about 20,000 barrels per day.

The planned December start has increased pressure to resolve outstanding community concerns. Residents want assurances that their land rights will be respected and that they will receive the compensation and benefits they are entitled to.

The dispute now presents a major challenge for the project, as the government and the company seek to move forward while affected communities continue to demand answers over their land and the benefits of Turkana’s oil resources.

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