Oil Governance in Uganda and Kenya: A review of efforts to establish baseline indicators on the impact of the oil sector in Uganda and Kenya © iStock APRIL 2015 The MacArthur Foundation supports creative people and effective institutions committed to building a more just, verdant, and peaceful world. In addition to selecting the MacArthur Fellows, the Foundation works to defend human rights, advance global conservation and security, make cities better places, and understand how technology is affecting children and society. More information is at www.macfound.org. The United Nations Environment Programme World Conservation Monitoring Centre (UNEP- WCMC) is the specialist biodiversity assessment centre of the United Nations Environment Programme (UNEP), the world’s foremost intergovernmental environmental organisation. The Centre has been in operation for over 30 years, combining scientific research with practical policy advice. More information is at www.unep-wcmc.org Copyright: 2015 United Nations Environment Programme Copyright release: This publication may be reproduced for educational or non-profit purposes without special permission, provided acknowledgement to the source is made. Reuse of any figures is subject to permission from the original rights holders. No use of this publication may be made for resale or any other commercial purpose without permission in writing from UNEP. Applications for permission, with a statement of purpose and extent of reproduction, should be sent to the Director, UNEP-WCMC, 219 Huntingdon Road, Cambridge, CB3 0DL, UK. Disclaimer: The contents of this report do not necessarily reflect the views or policies of UNEP or the MacArthur Foundation, contributory organisations or editors. The designations employed and the presentations of material in this report do not imply the expression of any opinion whatsoever on the part of UNEP or the MacArthur Foundation, contributory organisations, editors or publishers concerning the legal status of any country, territory, city area or its authorities, or concerning the delimitation of its frontiers or boundaries or the designation of its name, frontiers or boundaries. The mention of a commercial entity or product in this publication does not imply endorsement by UNEP or the MacArthur Foundation. Authors: This report was prepared by Ruth Golombok (Lead Author), and edited by Matt Jones. Maps were prepared by Environmental Research and Assessment Citation: Golombok, R., Jones, M. I. (2015) Oil Governance in Uganda and Kenya: A review of efforts to establish baseline indicators on the impact of the oil sector in Uganda and Kenya. UNEP, Nairobi, Kenya Contents Abbreviations ......................................................................................................................................... v Glossary of terms ............................................................................................................................... viii Executive Summary ............................................................................................................................... 1 1 Introduction ................................................................................................................................. 10 1.1 Background ......................................................................................................................... 10 1.2 MacArthur Foundation grant making ............................................................................... 10 1.3 Study Objectives .................................................................................................................. 12 1.4 Report Structure .................................................................................................................. 13 2 Methodology ................................................................................................................................ 14 3 Overview of oil sector development ............................................................................................ 16 3.1 Exploration areas ................................................................................................................ 16 3.1.1 Uganda - Albertine Basin ....................................................................................... 16 3.1.2 Kenya - Lake Turkana ............................................................................................ 16 3.2 Nature of development and activities ............................................................................... 16 3.2.1 Physical infrastructure ........................................................................................... 19 3.2.2 Activities .................................................................................................................20 3.3 Area of influence ................................................................................................................ 20 4 Legal, standards and policy review .............................................................................................. 21 4.1 Introduction ........................................................................................................................ 21 4.2 Uganda ................................................................................................................................. 21 4.2.1 Overview................................................................................................................. 21 4.2.2 Governance framework .......................................................................................... 23 4.2.3 Bio physical aspects ............................................................................................... 27 4.2.4 Socioeconomics ...................................................................................................... 31 i 4.3 Kenya .................................................................................................................................. 34 4.3.1 Overview................................................................................................................. 34 4.3.2 Governance framework .......................................................................................... 36 4.3.3 Biophysical aspects ............................................................................................... 40 4.3.4 Socioeconomic ....................................................................................................... 43 4.4 International standards and best practice ........................................................................ 46 4.4.1 IFC and World Bank Group .................................................................................. 46 4.4.2 International Conventions..................................................................................... 50 4.4.3 Independent International Organisations ............................................................ 52 4.4.4 Anti-corruption/Transparency Initiatives ............................................................ 53 4.4.5 Human Rights Standards and Guidance ............................................................... 54 4.4.6 Oil and gas industry ............................................................................................... 55 4.5 Corporate requirements ..................................................................................................... 56 5 Existing and Planned Monitoring Efforts .................................................................................... 57 5.1 Introduction ....................................................................................................................... 57 5.2 Uganda ................................................................................................................................ 57 5.2.1 Government, NGOs and research institutions .....................................................59 5.2.2 Oil companies ........................................................................................................ 65 5.2.3 Summary ............................................................................................................... 66 5.3 Kenya ..................................................................................................................................68 5.3.1 Government NGOs, and research institutions .................................................... 69 5.3.2 Oil companies ........................................................................................................ 74 5.3.3 Summary ................................................................................................................ 75 6 Summary of applicability of available data for tracking achievement of environmental, socioeconomic and governance objectives .........................................................................................76 6.1 Introduction ....................................................................................................................... 76 ii 6.2 Summary of Data Availability ............................................................................................ 79 7 References and Bibliography ...................................................................................................... 84 7.1 References cited in text ...................................................................................................... 84 7.2 Legislation and standards cited in