Kenya's early oil pilot schemes exposed significant governance and revenue management weaknesses, prompting a stark warning from Controller of Budget Margaret Nyakang’o before full-scale crude exports commence.

• Nyakang’o cited limited disclosure of Production Sharing Contracts (PSCs) and weak monitoring of the five percent royalty for local communities.
• The Controller of Budget highlighted the absence of clear guidelines for accounting and spending petroleum proceeds and proposed that community funds be managed by a legally constituted local Board of Management.
• Nyakang’o emphasized the lack of a legal framework restricting oil revenues for recurrent expenditure and called for clarity on her office's mandate to authorize withdrawals from petroleum funds.