Nairobi, June 7 -- The National Treasury has cut Sh9.84 billion in funding for the development of the South Lokichar Basin, hurting the country's dream of delivering its first oil before the end of 2026.

Budget estimates approved by the National Assembly last Thursday excluded the entire Sh9.84 billion, which had earlier been apportioned to the State Department for Petroleum for development of the oil field.

The 2026 Budget Policy Statement (BPS), which the National Assembly approved in March 2026, had allocated the State Department for Petroleum some Sh30.23 billion for the 2026/2027 fiscal year.

This included Sh20.4 billion in recurrent expenditure and Sh9.84 billion towards development. However, in the estimates approved by the Hous...