THE ENERGY SECTOR MODERNIZING THEIR LEGISLATIVE FRAMEWORK IN KENYA

Posted on : Wednesday , 3rd April 2019

 The frame work which has guided the exploration and production is established by the Petroleum Act 2019 in Kenya.

The piece of legislation that has been updated will govern the production, contracting and exploring of petroleum resources in Kenya, even including natural gas and crude oil. The approval into the law of Energy Bill2017 as well as petroleum Bill2017('The Acts") by the President Uhuru Kenyatta, on the 12th of March was  a new chapter for Kenya's energy sector  heralds, which aims at modernizing the legal framework of the energy sector in Kenya, introducing a raft of amendments to Kenya's ageing energy legislative framework with also keeping a view abreast with the evolving scheme ("EOPS"), expecting that the Acts will reinvigorate investors to participate in Kenya's nascent oil industry due to increased certainty with respect to Kenya's legislative regime.

 Under the Energy Act2017 three institutions are established that will be tasked with regulating and managing Kenya's energy resources, being the Energy and petroleum Regulatory Authority ("EPRA"), the Rural Electrification and Renewable Energy Corporation ("REREC") and the Nuclear Power and Energy Agency ("NPEA").

 Provided by the energy Act2019, the EPRA will be mandatory along with the regulation of Kenyan's electricity value chain with a specific focus on distribution, transmission, generation and supply segments of the electricity value chain.

 In addition, the EPRA will similarly be tasked with regulating the important, transportation, exportation, refinement, importation, storage and sales of petroleum and attendant petroleum products an exception being crude oil.

 As currently spearheaded by Kenya Electricity Transmission Company Limited (KETRACO") under the guidance of Rural Electrification Authority ("REA")

 REREC, on the other hand will be mandated with providing oversight with respect to Kenya's Rural Electrification Programme under the guidance of the Rural Electrification Authority ("REA").REREC will be at the helm of Kenya's renewable energy agenda, therefore REREC is to be mandated, inter alia, which will ensure that Kenya's mix of energy shall comprise of a significant portion of renewable energy sources, in line with the Paris accord. It is worthwhile to note that there is significant progress being made on the front, with 65% of Kenya's energy mix is coming from renewable sources. 

 In a similar way, the task is been given to the NPEA to assist with the successful attainment of the nuclear power ambitions of Kenya. Pioneered by the NPEA it is expected to introduce and  implement sound policies under the nuclear power programme.