The Energy and Petroleum Regulatory Authority (EPRA) has begun a series of public consultations on seven draft upstream and midstream petroleum regulations, with the authority assuring Kenyans that the new laws will safeguard public interest once crude oil mining begins.
Speaking during a consultative forum at the Meru National Polytechnic in Meru County, EPRA Deputy Director Robert Kibiwot said the authority was gathering views from residents of Meru, Isiolo, Marsabit, Laikipia, Tharaka Nithi and Samburu counties.
He noted that Kenya discovered crude oil in 2012, making it necessary to introduce a clear regulatory framework to ensure the resource benefits citizens.
Kibiwot observed that in many parts of Africa, oil discoveries had sparked conflict and environmental damage, emphasizing the need for Kenya to establish preventive measures early.
He said the seven laws would address licensing, land acquisition, local content, operations, cost management, transportation and environmental safety.
According to Kibiwot, one of the key regulations focuses on how licenses for oil exploration and mining will be issued.
He said that the measure is designed to enhance transparency in a sector where such processes were previously shrouded in secrecy.
Another regulation emphasizes the importance of local content, requiring investors to employ Kenyans and source goods and services locally unless they can prove such resources are unavailable in the country.
“The second law is to ensure that Kenyans benefit on something we call local content. This means that the investor who comes to mine the oil in Kenya must first ensure that the locals are given employment during the mining,” said Kibiwot.
In addition, the Issue of land which is often controversial in Kenya has also been addressed.
The proposed law seeks to regulate how investors acquire land for oil projects, spelling out procedures for compensating owners whether the land is private or community owned.
“This law has explained how the investor will acquire land where the crude oil had been found whether it was community or private land and how the investor will pay the owner of the land,” said Kibiwot.
On operations, Kibiwot said the draft regulations specify the permits and approvals oil companies must obtain before developing drilling sites.
These include drilling permits, production licenses and authorization to set up facilities.
The proposed framework also introduces rules on cost management to ensure accountability.
Kibiwot explained that investors often recover their capital from oil sales, but the law will now require government verification of such expenses before reimbursement is approved.
Moreover, the transport and storage of crude oil form another critical area with the sixth regulation outlining standards for building pipelines and storage tanks.
Kibiwot noted that this law was particularly relevant to the planned Lokichar–Lamu pipeline which would pass through the Lapset Corridor project.
“The sixth law is on crude oil transportation and national gas transportation where we must put in place laws because it is expected that a pipeline will be constructed from Lokichar to Lamu via the Lapset corridor,” said Kibiwot.
The final regulation addresses environmental, health and safety(EHS) concerns.
Kibiwot warned that oil spills pose serious risks to water, soil, animals and humans.
He said that the law will therefore set out mandatory safeguards for companies, including clean-up obligations and compensation in the event of pollution.
He cited complaints from Turkana and Northern Kenya where past drilling activities allegedly led to careless disposal of hazardous waste.
“If by bad luck the environment was polluted, the investor must bear responsibility and clean the environment. We have heard many complaints in Northern Kenya and Turkana after those who drilled the oil disposed the waste carelessly thus killing animals, polluting water and affecting humans. We wouldn’t want this to happen again. That is why we have these laws in place,” he said.
Kibiwot assured residents that EPRA would continue to collect views from the public to refine the regulations before they are finalized.
He stressed that the authority’s ultimate goal was to ensure that oil exploration brings long-term benefits to Kenyans without harming the public.
