Energy Sector Legislation
Kenya’s Energy Policy, as set out in Sessional Paper No. 4 of 2004, provides for the regulation of the entire energy sector including electric energy, petroleum and renewable energy.
The guidelines under the policy were effected through the Energy Act, 2006 (the Energy Act).
There are also numerous other Laws which have an impact on the energy sector. Key among these include the Geothermal Resources Act, 1982, the Environmental Management and Coordination Act, 1999, the National Construction Authority Act, 2011, the Land Act, 2012, the Public Finance Management Act, 2012 and the Public Private Partnerships Act 2013.
On 12th March 2019, the Energy Bill 2017 and the Petroleum Bill 2017 were assented into Law, with a view of modernizing the legal framework for Kenya’s energy sector. The Acts introduced a raft of amendments to Kenya’s ageing energy legislative framework in order to keep abreast with the evolving global energy landscape.
Interrelation between GDC and sector players
The Geothermal Development Company (GDC) was established under Sessional Paper No 4 on Energy in 2004 and the subsequent enactment of the Energy Act No. 12 of 2006 which resulted in the restructuring of the energy sector to bring on board more players in line with new functions.
The Energy Act 2017 further realigned the sector creating new players in line with generation, transmission, distribution, oversight and policy functions.
The Geothermal Development Company (GDC) is domiciled in the Ministry of Energy (MoE). GDC was created following the unbundling of the energy sector into entities that are focused on the various stages of the energy value chain as provided for by the Energy Act of 2006. All players are assigned clearly defined roles.
Other agencies within the MoE include: The Energy Regulatory Commission (ERC), Kenya Electricity Generating Company (KenGen), Kenya Power, the Rural Electrification and Renewable Energy Corporation (REREC), Kenya Electricity Transmission Company (KETRACO) and Nuclear Power and Energy Agency (NuPEA).