Business suffers after Tullow Oil suspends operations

Written By: Caroline Njenga
2596

The business community is Turkana County has begun to feel the heat, three days after Tullow Oil halted crude oil production and trucking due to security issues.

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The local community says the closure has slowed business activities in the region and is threatening to render over 1,000 youths jobless.

Tullow Oil halted crude oil exploration and production as well as trucking from Lokichar to Mombasa due to security concerns.

The firm’s Chief Executive Paul McDade said that Tullow Oil would resume crude oil operations and trucking once the government improves the security situation on the ground.

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The Turkana business community is feeling the heat of this decision since most of their customers were staff working at the oil fields.

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While appealing to the government to solve the security issue, the business owners say business has drastically slowed down, which is likely to negatively affect the economy of Turkana County.

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They say the decision by oil firms in the area would directly affect over 1,000 local people who are employed directly or indirectly by firms involved in crude oil exploration or production.

Meanwhile, East African Breweries (EABL) has reported a 15 percent drop in its full year net profit to Sh7.3 billion that the listed firm blames on a one-off tax provision.

The company’s net revenues for the period however rose by 5 per cent to Sh73.5 billion.

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Profits from operations went up by 4 per cent excluding the impact of provisions made for pending tax claims.

The firm says bottled beer, mainstream spirits and Scotch whisky growth across the region helped the Group volumes which grew by 7 per cent.

EABL is currently on an expansion drive targeting improvement of capacity in Nairobi business and installation of new spirit lines in both Kenya and Uganda.

The firm has recommended a final dividend of five shillings and fifty cents per share.

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