12 March 2019

Kenya: President Signs Into Law the Petroleum and Energy Bills

Photo: The Presidency/Capital FM
President Uhuru Kenyatta signs three Bills into law.

Nairobi — President Uhuru Kenyatta has today signed three Bills thereby operationalizing them into law.

The three Bills which were presented to the President at State House, Nairobi, are, The Urban Areas and Cities (Amendment) Bill 2017, The Petroleum Bill 2017 and the Energy Bill 2017.

The new energy law among other things proposes the establishment of three key national energy entities to manage and regulate energy resources in the country.

The law establishes the Energy and Petroleum Regulatory Authority, the Rural Electrification and Renewable Energy Corporation and the Nuclear Power and Energy Agency.

The Energy and Petroleum Regulatory Authority will be mandated to regulate generation, importation, exportation, transmission, distribution, supply and usage of electrical energy with the exception of licensing of nuclear facilities.

It will also be required to regulate the importation, refining, exportation, transportation, storage and sale of petroleum and petroleum products with the exception of crude oil.

The Authority will also be required to manage production, conversion, distribution, supply, marketing and usage of renewable energy.

The Rural Electrification and Renewable Energy Corporation shall be responsible for among other things to oversee the implementation of the Rural Electrification Programme, manage the Rural Electrification Programme Fund and also source for additional funds for the Rural Electrification Programme and renewable energy.

The Nuclear Power and Energy Agency will under the new law be mandated to propose policies and legislation necessary for the successful implementation of a nuclear power programme.

The agency would among other things be required to undertake extensive public education and awareness on Kenya's nuclear power programme.

The 2017 Petroleum Bill that was assented into law by the President will among other things provide a framework for contracting, exploring, developing and producing petroleum.

The new law would also be used to formulate national petroleum policy and conduct petroleum operations. It will be a reference point in the establishment of petroleum institutions.

Under the new law, the national government, county governments and local communities shall receive a fair share of benefit from revenues emanating from petroleum operations.

A county government is to receive a share equivalent to twenty per cent of the national government's share while local communities will receive a share equivalent to five per cent of the national government share.

Parliament is tasked with reviewing of percentages within ten years to take into consideration any adjustments needed.

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