346
W. Karanja and N. Njenga
safety.
15 In addition, in 2012, the International Finance Corporation
(IFC) published eight (8) performance standards (the IFC Performance
Standards), applicable to all projects funded by the IFC.
16 Four (4) of the
IFC Performance Standards deal directly with community SLO issues
and include standards for community health, safety and security; and
safety, land resettlement, indigenous peoples and cultural heritage. Other
interventions have been benchmarked against leading international standards, including the United Nations Sustainable Development Goals
(SDGs), the Rio Declaration and the Global Reporting Initiative. These
will be discussed further in Sect. 11.4 of this Paper.
To conclude, as a concept, the social licence to operate is concerned
with having the activities undertaken by a company accepted by the
stakeholders, both the host community and those affected by the project.
This is particularly relevant in the oil and gas sector due to the potential impact of projects on the life of the communities as well as on the
environment. Neither obtaining formal licences nor meeting regulatory
requirements is enough to facilitate the smooth running of operations by
investor companies. Indeed, hostile pushback by the communities has
been experienced even where companies have complied with the legal
and regulatory formalities.
The aim of this paper is to provide a detailed study of SLO in the
oil and gas sectors in 3 East African countries: Kenya, Tanzania and
Uganda, with a view to determining whether SLO issues are adequately
addressed in the oil and gas sectors in East Africa, and what if any further
steps need to be taken. Section 11.1 has introduced the concept of SLO.
Section 11.2 of this paper analyses the economic status of the 3 East
African countries, and the current state of each country’s oil and gas
sector. The section will also analyse oil and gas projects in the three
countries that have been affected by SLO. Section 11.3 reviews the laws
and regulations governing oil and gas in East Africa, and their provisions
15 “World Bank’s EHS Guidelines”. 2007. Ifc.Org. https://www.ifc.org/wps/wcm/connect/top
ics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehs-guidelines,
accessed January 6, 2020.
16 “IFC Performance Standards”. 2019. Ifc.Org. https://www.ifc.org/wps/wcm/connect/Top
ics_Ext_Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies-Standards/Perfor
mance-Standards, accessed January 6, 2020.
W. Karanja and N. Njenga
safety.
15 In addition, in 2012, the International Finance Corporation
(IFC) published eight (8) performance standards (the IFC Performance
Standards), applicable to all projects funded by the IFC.
16 Four (4) of the
IFC Performance Standards deal directly with community SLO issues
and include standards for community health, safety and security; and
safety, land resettlement, indigenous peoples and cultural heritage. Other
interventions have been benchmarked against leading international standards, including the United Nations Sustainable Development Goals
(SDGs), the Rio Declaration and the Global Reporting Initiative. These
will be discussed further in Sect. 11.4 of this Paper.
To conclude, as a concept, the social licence to operate is concerned
with having the activities undertaken by a company accepted by the
stakeholders, both the host community and those affected by the project.
This is particularly relevant in the oil and gas sector due to the potential impact of projects on the life of the communities as well as on the
environment. Neither obtaining formal licences nor meeting regulatory
requirements is enough to facilitate the smooth running of operations by
investor companies. Indeed, hostile pushback by the communities has
been experienced even where companies have complied with the legal
and regulatory formalities.
The aim of this paper is to provide a detailed study of SLO in the
oil and gas sectors in 3 East African countries: Kenya, Tanzania and
Uganda, with a view to determining whether SLO issues are adequately
addressed in the oil and gas sectors in East Africa, and what if any further
steps need to be taken. Section 11.1 has introduced the concept of SLO.
Section 11.2 of this paper analyses the economic status of the 3 East
African countries, and the current state of each country’s oil and gas
sector. The section will also analyse oil and gas projects in the three
countries that have been affected by SLO. Section 11.3 reviews the laws
and regulations governing oil and gas in East Africa, and their provisions
15 “World Bank’s EHS Guidelines”. 2007. Ifc.Org. https://www.ifc.org/wps/wcm/connect/top
ics_ext_content/ifc_external_corporate_site/sustainability-at-ifc/policies-standards/ehs-guidelines,
accessed January 6, 2020.
16 “IFC Performance Standards”. 2019. Ifc.Org. https://www.ifc.org/wps/wcm/connect/Top
ics_Ext_Content/IFC_External_Corporate_Site/Sustainability-At-IFC/Policies-Standards/Perfor
mance-Standards, accessed January 6, 2020.