President Uhuru Kenyatta, on Tuesday signed the petroleum bill into law to regulate oil exploration and its production.
Uhuru signs crucial petroleum bill into law
Uhuru signs new petroleum law
The Bill outlines how revenues will be shared between local communities and companies as Tullow Oil and its partner Africa Oil discovered commercial reserves at the Lokichar basin in Turkana County.
Notably, the law establishes the Energy and Petroleum Regulatory Authority, the Rural Electrification and Renewable Energy Corporation and the Nuclear Power and Energy Agency.
It will be expected to regulate generation, importation, exportation, transmission, distribution, supply and usage of electrical energy with the exception of licensing of nuclear facilities.
The Bill also be required to regulate importation, refining, exportation, transportation, storage and sale of petroleum and petroleum products with the exception of crude oil.
President Kenyatta assented the Petroleum Bill into law for it to provide a framework for contracting, exploring, developing and producing petroleum.
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.
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