The Impact of Extractive Industry Local Content on Community Development in Turkana County, Kenya

Abstract

Extractive companies are major players in the economic landscapes of many developing countries. While the macroeconomic impact of extractive sector operations is significant and positive, the microeconomic impact of extraction enterprises is uneven, and in many cases could be greatly enhanced if companies adopted more explicit policies and practices to expand economic opportunity along their value chains. The purpose of this study was to evaluate the impact of extractive industry local content on community development in Turkana County, Kenya. The paper was anchored by the stakeholder theory and employed a desktop research approach. The paper established that extractive industry local content has the potential to boost community development. In particular, well-designed and implemented local content requirements are catalysts for sustainable development. Continuous consultation between extractive companies and host communities is critical in achieving meaningful community development. Local employment, training of the local workforce, technology transfers, and domestic sourcing of goods are some of the benefits accruing to the local community from the extractive companies. The paper recommended that the government through parliament should expedite the enactment of bills and create a policy to govern the extractive sector and protect the rights of indigenous communities. There is a need for civil society to create an understanding of the law by administrators, security heads, and local people and to provide technical assistance for policy development at the county level. County and national governments need to drive the development of the sector, rather than this being done by the investor. There is a need for the development of a clear policy framework on local employment as part of local content policies. Extractive companies should expand the provision of internship opportunities as well as staff learning through cross-posting, develop and adopt technology transfer agreements, form joint ventures, and set aside funds to support local research and development.