The crude oil will be transported by both rail and road to Mombasa for refining.
Oil was discovered in Kenya’s Turkana County in 2012 by Tullow Oil and the country is now getting ready to full commercial exploitation of the product with plans in motion to establish business and infrastructure to market it abroad.
President Uhuru Kenyatta who chaired the meeting also approved the development of the Lokichar to Lamu crude pipeline which will be the main transportation route for the oil from Kenya in the future.
The first crude oil in Kenya will be refined at the Kenya Petroleum Refinery in Mombasa which has now been fully acquired by the government through the Kenya Pipeline Company.
The Cabinet also approved ministerial budget priorities for the 2016/2017 financial year.