AN EXAMINATION OF THE NATURAL RESOURCE CURSE: OIL DISCOVERY IN KENYA, NATURAL RESOURCE CONFLICT AND CSR PROVISIONS IN THE OIL INDUSTRY LAW

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This study seeks to identify the relationship between oil discovery in Kenya in 2012 and its possible effects to the economy. The resource curse theory puts forward that the discovery of natural resources in a developing country could cause deterioration in the state of affairs. This may manifest itself in natural resource conflict. Foreign direct investment is important in resource extraction in developing countries because the MNCs provide the necessary capital and equipment for the extraction process.
The study hypothesizes that Kenyans view that there is need for legislation to curb the possible detriments that may be brought about by the resource curse. It seeks to study the views of Kenyans as to the likelihood of natural resource conflict erupting due to the regulation of foreign direct investment and how it can be used to the benefit of the Kenyan economy. It hypothesizes that in order to ensure Kenya benefits from the oil discovery, legislation needs to be put in place to ensure that Oil Exploration and Production Companies (OEPCs) are socially conscious and engage in CSR activities mandated in the law.

 

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