The Local Content Bill (Senate Bill No. 50 of 2023)

REPUBLIC OFKENYA

PARLIAMENT

SENATEBILLS

(Bill No. 50 of 2023)

THE LOCAL CONTENT BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 224 of 24th November, 2023 and passed by the Senate, with amendments, on 7th August, 2025.)

Clause

• 1 —Short title.
• 2—Interpretation.
• 3 —Application.
• 4 — Objects.
• 5 —— Guiding principles.

PARTII-ROLEOFTHENATIONALANDCOUNTYGOVERNMENTS

• 6—Obligationsof theNational and CountyGovernments.
• 7 — Oversight role of the Committee.
• 8—Duties of the County Governments.

PARTIII-ESTABLISHMENTOFTHELOCALCONTENT DEVELOPMENTCOMMITTEE

• 9—EstablishmentoftheLocal ContentDevelopmentCommittee.
• 10 — Functions of the Committee.
• 11 ——Assessment of local capabilities.
• 12—Membership of the Committee.
• 13 —— Term of office.
• 14 Qualifications for appointment.
• 15—Disqualification frommembership
• 16 —Vacation of office of member.
• 17 ——Conduct of the affairs of the Committee.
• 18—Sub-committees ofthe Committee.

2

THELOCALCONTENTBILL,2023

ARRANGEMENTOFCLAUSES

PARTI-PRELIMINARY

• 19 ——Secretariat.

• 20—Functions of the Secretariat.

• 21 — General fund.

• 22 ——Annual estimates.

• 23—Accounts and audit.

PARTIV-LOCALCONTENTPLANS

Localcontentplan

• 24 ——Minimum local content.

• 25 —— Local content plan.

• 26 ——Review of local content plan.

• 27 —— Local content certification.

EmploymentandSkillDevelopmentPlan

• 28 — Capacity building.

• 29 ——Employment and skills development plan.

• 30—Education and training for locals.

• 31 — Consideration of employment of local persons.

• 32 —- Succession plan.

TransferofTechnologyandResearchPlan

• 33 —— Strategies for transfer of technology.

• 34 ——- Fiscal support for the transfer of technology.

• 35— Transfer of technology plan.

• 36 —— Facilitation of transfer of technology by an operator.

• 37 —— Submission of technology transfer reports.

ResearchandDevelopmentPlan

• 38 —Research and development plan.

• 39 —Implementation of strategies to promote knowledge transfer and research.

• 40—Fundingofresearch and development.

FinancialServicesPlan

• 41 —- Submission of a financial services plan.

Local Content Performance Reporting

• 42—Localcontent performancereport.
• 43 — Assessment of performance report.

PARTV-STRATEGIESFORLOCALCONTENTDEVELOPMENT

• 44—Procurement.
• 45—Preference of local companies.
• 46—Preference of local goods and services.
• 47—Contractingservices fromlocal companies.
• 48 —Thresholds for Kenyan equity stake in operator.
• 49—Financial incentives.
• 50 —— Fund for Training and Development.

PARTVI-MISCELLANEOUSPROVISIONS

• 51 —-Annual work programmes.
• 52 ———Monitoring local content of expenditure incurred.
• 53 —Impact assessment.
• 54 —— Reporting by a connected entity.
• 55 —Support measures.
• 56 ——— Public participation.
• 57 —— Offences.
• 58—Offence by a body corporate.
• 59—Revocation oflicence.
• 60 —— Regulations.

PARTVII-TRANSITIONALPROVISIONS

61 ——— Existing contracts and agreements.

62 — Amendment of Cap. 306.

63 —— Amendment of Cap. 308.

64— Amendment of Cap. 314.

SCHEDULE PROVISIONSRELATING TO THECONDUCT OF MEETINGSOFTHECOMMITTEE

THELOCALCONTENTBILL,2023

A Bill for

ANACTof Parliamenttoprovideforaframeworktofacilitatethelocal ownership, control, and financing of activities connected with the exploitation of gas, oil, other petroleum resources, and mineral resources;toprovide aframeworktoincreaselocalvaluecapture alongthevaluechaininthe explorationofgas,oil,otherpetroleum resources,and minerals;and for connected purposes.

ENACTED by theParliament ofKenya,asfollows-

PARTI-PRELIMINARY

Short title.

1. This Act maybe cited as the Local Content Act,2023.

Interpretation.

2. InthisAct—

"Cabinet Secretary" means either the Cabinet Secretary responsible for matters relating to oil, gas and other petroleum resources or the Cabinet Secretary responsible for matters relating tomining as thecasemaybe;

"Committee" means LocalContent Development Committee established under section 9 of this Act;

"company" meansafirmorentitywhosebusiness enterprise is incorporated or otherwise organised under the Laws of Kenya and whose principal place of business is in Kenya and which is effectively owned and controlled by nationals of Kenya;

"connected entity” means a person, firm or entity contracted by an operator to perform a specified component of the operator's obligations under a licence issued pursuant to this Act;

"extractive industry” means the oil, gas and mining sectors in Kenya;

"foreigner” means a person who is not a citizen of Kenya, and includes a body corporate which was not incorporated in Kenya;

Application.

Objects.

"local content"means the added value brought to the Kenyan economy from extractive industry through systematic development of national capacity and capabilities and investment in developing and procuring locally available work force, services and supplies, for the sharing of accruing benefits;

"local goods" means materials or equipment mined, produced or manufactured in Kenya and for this purpose, a good shall be considered to be manufactured,processed or assembled if it differs substantially in its basic characteristic, purpose or utility or in the case of a manufactured good, if the cost of local materials, labour andservices used in the manufacture of such goods constitutes at least fifty percent of the cost of thefinished product;

"local person" means a person, firm or entity performing works, services or supplying goods and materials to an operator, whether as asubcontractor or otherwise,whosebusiness enterprise is incorporated under the Laws of Kenya and whoseprincipal place of business is inKenya andwhich is effectivelyowned and controlled by a Kenyan national;

"operator" means a person, firm or entity licensed by the Government toundertake exploration,developmentand extraction activity with respect to natural resource in the extractive industry; and

"value chain" means sequential stages in the extractive industry life cycle including exploration and development, production, treatment, transportation, refining, or other beneficiation, and distribution.

3. This Act shall apply to all commercial activities related to theexploration,extraction,development andexploitation ofoil, gas and otherpetroleumresources in the extractiveindustryin Kenya. 2. 4.The object of this Act is to— 3. (a)promotethe maximisation ofvalue-addition and the creation of employment opportunities in the extractiveindustryvalue chain through the use of local expertise, goods, services, businesses and financing and their retention in the country;

Guiding principles.

(b)provide aframework for the-

• (i) establishment of a monitoring,evaluation and reporting system in the implementation of this Act;
• (ii)development of indigenous skills across the extractive industry value chain; and
• (i) application of the mechanism of local content by an operator under this Act;
• C enhancetheparticipationoflocalpersonsin extractiveindustryvalue chain;
• (d)facilitate the development of a competitive, capable and sustainablelabour forcewithin the extractive industry;
• e enhancelocalownership anduse oflocal assets and services in the extractiveindustry; and
• maximisevalue addition through local content development andlocalparticipationinextractive industry operations.
• 5.All persons shall,in the performance of their functions under this Act, be guided by the following principles—
• (a)the national values and principles of governance set out underArticle10of the Constitution;
• b) theprinciples ofownershipofnaturalresources set out under Article 62of the Constitution; and
• the principle of equity in the sharing of benefits accruingfromnaturalresourceexploitationset outunderArticle69oftheConstitution.

Obligationsof the National and County Governments.

PARTII-ROLEOFTHENATIONALAND COUNTYGOVERNMENTS

6.(1) The National and County Governments shall, to the extent of their constitutional mandate,put in place measures to ensurethemaximum developmentand adoption oflocal content by anoperatorunderthisAct.

• (2)The National Government shall,in performing its functions under subsection (l), collaborate with County Governments.

Oversightroleof 7. In ensuring that the National Government fulfils its the Committee.

• obligations under section 6, the Committee shall—
• (a)identifysectors in which value-addition opportunities exist along the extractive value chainindustrywithrespecttovariousgoodsand services andfocus on the local content, participation and supply capability development in those sectors;
• (b)facilitate the realisation of local content through—-
• (i) managing the pace and scheduling of extractive industry programmes in order to enable localsto takeadvantageof opportunitiesalongtheextractivevalue chain;
• (ii) facilitatinglocalcapabilitydevelopment through in-country programmes in order to enablefullparticipationbylocalsinthe extractive industry value chain;
• (iii) thedevelopmentofstrategiesforthe development of local skills,business knowhow, technology, financing, capital market development, and wealth capture and distribution; and

Dutiesof the County Governments

• (iv) provision of guidelines to ensure local content tactivitiesshallincludethe participation of local persons at a quota of not less than thirty percent.
• (c) ensuredeliveryofmaximum localvalue-addition by ——
• measuring and reporting on the performance of operators in the extractive industry; and
• (ii) periodically comparing the local content and participationperformanceamongstoperators, between projects and operations and with other countries and identifying opportunities for improvement and best practices; and
• (d) pursue supportivepolicyobjectivesacrossall policy frameworks with the view to giving effect to theobjectives ofthisAct.
• 8.(1) Each county government shall,for the performance of itsfunctionsundersection6ofthisAct-
• a) assist local contractors and companies within the respective counties todevelop their capabilities and capacitiestofurther the attainmentofthegoal of developing local content in the extractive industry within the respective county;
• (b) implement the cross-cutting policies formulated by theNationalGovernmentwithrespecttothe implementationoflocal content;
• implement strategies that enable local participation in the various activities along the extractive value chain in the respective county;
• (P) monitor and put in place measures to facilitate the implementationoflocal contentperformanceby alloperatorsintherespective county in accordance with the provisions of this Act;
• e conduct regular audits for thepurposesof

Establishmentof theLocal Content Development Committee.

Functions of the Committee.

• monitoring the compliance with the provisions of this Act in the respective county;
• () set targets,in collaboration with the Committee, fortheachievementoflocalcontentand participation in relation to specific projects, operations and operators and support these targets with appropriate contract terms; and
• performsuchotherfunctionnecessaryfor the implementationoftheobjectivesofthisAct.

PARTIII-ESTABLISHMENTOFTHELOCALCONTENT DEVELOPMENTCOMMITTEE

• 9.Thereis establishedtheLocalContentDevelopment Committee.
• 10.(1) The functions of the Committee shall be to—-
• (a)oversee,coordinateandmanage the development oflocal content in the country;
• (b) make recommendations and advise therelevant Cabinet Secretary on the formulation of policy andstrategiesforthedevelopmentand implementation oflocal content;
• makerecommendations to therelevantCabinet Secretaryon theminimum standardrequirements for local content and the development of local contentplansunder thisAct;
• (p) appraise, evaluate and approve local content plans andreports submitted to the Committeepursuant to section 25;
• oversee, in consultation withthecounty governments, the implementation of local content policies and strategies by operators;
• collaborate with county governments in the implementationofstrategiestoimprovethe capacity of local persons, businesses and the capitalmarkettofullyleveragetheobjectivesof thisAct;and
• carry out such other functions that may be necessaryfor the achievement of the objects and

Assessment of local capabilities.

Membership of the Committee.

purposes of this Act or that may be conferred by any other law.

• (2) The Committee shall,in implementing this Act,-
• a) ensuremeasurableandcontinuousgrowthinthe development and adoption of local contentwith respect to all activities in the extractive industry; and

3. b consult with, and collaborate with the county governments. 4. 11.The Committee shall-

• a) within aperiod oftwelvemonthsfromthe date of its constitution, develop, and keep under regular review, a comprehensive register of all equipment andservicecategoriesrequiredtoeffectively supply the needs of the extractive industry;
• b) assess the capacity of thelocal industrytosupply the goods and services identified under paragraph (a); and

7. adopt policies and measures saimedat progressively enhancing the capabilities of local enterprises tocompete effectively on quality, price, quantity and reliability in the supply of goods and services required in the extractive industry. 8. 12.(1) The Committee shall consist of 9. (a)achairpersonwhoshall becompetitivelyrecruited by the PublicServiceCommissionandappointedbythe President by notice in the Gazette. 10. (b)thePrincipalSecretaryresponsibleformattersrelating to petroleum and natural gas or a representative designated in writing; 11. (c) the Principal Secretary responsible for matters relating to mining or a representative designated in writing;

Term of office.

Qualificationsfor appointment.

• (d) the Principal Secretary responsible for matters relating to industry and enterprise development or a representative designated in writing;
• (e) two persons nominated by the Council of Governors;
• (f) one person nominated by players in the oil and gas industryinsuch amanner astheCabinetSecretary responsibleformattersrelatedtooilandgasshall determine;
• (g) one person nominated by players in the mining industry in such a manner as the Cabinet Secretary responsiblefor matters related to mining shall determine;
• (h) the Director who shall be the secretary to the Committee.

(2) The persons nominated under subclause (1)(f) and (g) shall be appointed by the relevant Cabinet Secretary by notice in the Gazette.

• (3)Thereshallbepaidtothemembersof theCommittee such allowances as theCabinetSecretariesresponsibleformatters related to petroleum, oil and mining may, in consultation with the SalariesandRemuneration Commission,determine.

13. (1) The persons nominated under section 12(1)(a) and (f) shall be appointed for a term of four years renewable for one further term.

• (2)Nomore than two thirds of the Committeeshallbe of the same gender.

14. A person is qualified for appointment as -

• (a) the chairperson of the Committee if thatperson
• (i) holds a degree from a university recognised in Kenya;
• (ii) has knowledge and at least ten years' experienceinmattersrelatingtotheextractive industry; and
• (ii)meetsthe requirements of Chapter Six of the Constitution; or

• (b) a member of the Committee under section 12(1)(f) if that person -
• (i) holds a degree from a university recognised in Kenya;
• (ii) has knowledge and at least five years' experienceinmattersrelatingtotheextractive industry; and
• (i) meets the requirements of Chapter Six of the Constitution.

Disqualification frommembership.

15. A person is not qualified for appointment as a member of the Committee under section 12(1)(a) and (f) if that person--

• (a) hasviolated ChapterSixof the Constitution;
• (b) is adjudged bankrupt; or
• has been convicted of an offence and sentenced to imprisonmentfor a term of more than six months.

Vacation of office 16.(1) The office of a member of the Committee appointed of member. under section 12(1)(f) shall become vacant if the member—

• (a) is adjudged bankrupt;
• (b) is convicted ofacriminal offence andsentenced toatermofimprisonmentofatleastsixmonths;
• (c) is convicted of an offence involving fraud or dishonesty;
• (d) isabsent,withoutreasonable cause,from three consecutivemeetings ofthe Committee;
• (e) resigns in writing addressed to the relevant Cabinet Secretary;
• is removed from officeby therelevant Cabinet Secretary for—

Conductofthe affairs ofthe Committee.

Sub-committees of the Committee.

Secretariat.

• (i) being unable to perform the functions of his or her office by reason of mental or physical infirmity; or
• (i)failingtodeclarehisorherinterestin any matterbeing considered or tobeconsidered by the Committee; or
• (g) dies.

17. (1) The Committee shall conduct its affairs in accordance with the provisions of the Schedule.

• (2)Except as otherwise provided in the Schedule,the Committeemayregulateits ownprocedure.
• 18.(1) The Committee may establish such sub-committees as it may consider necessary for the performance of its functions and the exercise ofits powers under this Act.
• sub-committee established under subsection (1),whose knowledge andskills arefound necessaryfor theperformance of thefunctions of the Committee but such person shall have no right to vote at the meeting.
• 19.(1) Therelevant Cabinet Secretaries responsiblefor matters relatedtotheextractiveindustryshalldesignateanappropriate administrative unit that includes representation from each of their respectiveMinistriestoserveastheSecretariatoftheCommittee.
• (2) The Secretariat shall consist of—
• (a) a director, who shall be competitively recruited and appointed by the Public Service Commission.
• (b)suchotherpublicofficersfromeachrelevant Ministryresponsible for matters related tothe extractiveindustryastheCabinetSecretariesshall, in consultation with the Committee, designate for theproperperformanceof thefunctionsof the

Functions ofthe Secretariat.

SecretariatunderthisAct.

• (3) Without prejudice to subsection (2), a person is qualified to be appointed as a director,if that person—

2. (a) is a citizen of Kenya; 3. (b) holds a degree in matters related to oil, gas and mining from a university recognized in Kenya; 4. management level; and 5. (d)meetstherequirementsofChapter Sixof the Constitution. 6. (4)Director shall holdoffice for a term of four years, renewableforonefurther term. 7. 20.Thefunctionsof theSecretariatshallbeto 8. (a) provide technical and administrative services to the Committee; 9. b implement the decisions,strategies,programmes andpoliciesof the Committee; 10. C makerecommendations totheCommitteeon the formulation andimplementationofprogrammes fortheachievementofthefunctionsofthe Committee; 11. (P) on behalf of the Committee,establish and maintainrelationshipswithinternational,national andlocalinstitutionsinvolvedintheextractive industry and other related activities; 12. e collaborate with State agencies, financial institutions and otherstakeholdersin the implementation of policies, strategies and programmes developed pursuant to this Act; 13. train, disseminateinformation 1andprovide linkages and networks with local and international institutions which engage in capacity building on

local content development and application;

• (g) conduct studies, research and investigations in ordertoenhancethedevelopmentoflocal content in the extractive industry in Kenya;

• (h) maintainalocalcontentdatabasesettingout information on-

• (i)projects, operations and programmes on extractiveactivitieswithrespecttoeach county, including the goods and services requiredwithrespect to the activities and the timelines for their delivery;

• (ii)suppliers of goods and servicesrelevant to the extractive industry in Kenya;

• (iii)human resource development programmes andinitiativesof theoperatorsandtheir connected entities,including work permits awarded and their related commitments;

• (iv) business development programmes and initiatives; and

• (v) the progress of activities by operators, State- owned agencies and connected entitiesin the adoption of local content;

• (i) make arrangementsfor periodical evaluation of the policiesandprogrammesinrelationto theobjects and functions of the Committee; and

• (! performsuch otherfunctions asmaybe assigned to it by the Committee.

General fund.

21. (1) There shall be a general fund of the Committee which shall vest in the Committee.

• (2) There shall be paid into the general fund-

• (a)such monies or assets as may accrue to or vest in theCommitteeinthecourseoftheexerciseofits powers or the performance of its functions under this Act;

Annual estimates.

Accounts and audit.

Cap. 412A.

• (b)annual contributions fromthe ministries responsible for matters related to the extractive industry; and
• (c) all moniesfrom anyother sourceprovided for or donated orlenttotheCommittee.
• 22.(1)At least three months before the commencement of eachfinancialyear, the Committee shall cause to be prepared estimates of the revenue and expenditure of the Committeefor that year.
• (2) The Committee shall approve the annual estimates before thecommencementofthefinancialyear towhich they relateandshallbesubmittedtotheCabinetSecretaryfor approval and after the Cabinet Secretary's approval, the Authorityshall not increase theannualestimateswithout the consent ofthe Cabinet Secretary.

23. (l) The Committee shall cause to be kept all proper books and records of accounts of the income,expenditure and assetsoftheCommittee.

• (2) Within a period of three months from the end of each financial year,the Committee shall submit to the AuditorGeneral the accountsof theCommitteetogetherwith
• (a)a statement of theincome andexpenditure of the Committee during that year; and
• (b)astatementof theassetsandliabilitiesof the Committee on the last day of thatyear.
• (3)The annual accounts of the Committee shall be prepared, audited and reported upon in accordance with the provisions of Articles226and229of theConstitution and the PublicFinancial ManagementAct.

Minimumlocal content.

Localcontent plan.

PARTIV-LOCALCONTENTPLANS

Localcontentplan

24.(1) The relevant Cabinet Secretary shall, in consultation with the Committee and by notice in the Gazette,set the minimum extractiveactivityundertakenunderthisAct.

• (2) An operator shall, in carrying out extractive activities under r this Act,comply with the minimum local content requirementsprescribed under subsection(1).

25. (1) A person shall, before applying for, or bidding for a a n nd n activity, prepare and submit to the Committee a local content plan with respect to the extractive activity in the prescribed form.

• (2) An operator shall, for the purposes of subsection (1), -

4. (a)submit along-term localcontentplan corresponding to theworkprogrammewith respect to the entire project which shall be submitted together with thebid or application toengage in theextractiveactivity;and 5. b once approval to carry out the extractive activity is granted, submit an annual local content plan with respect toeachyear of theprogrammeinrelation to the extractive activity.

• (3) An operator shall, in preparing a local content plan, set out the following information --

7. (a)the procurement,the expectedqualityof main goods and services and utilization of locally producedgoodsandservicesavailableinthe locality in which the extractive activityis tobe undertaken,where such goods meet established standards in the extractive industry; 8. (b)the qualification requirements and employment of local persons tobe engaged inthe extractive or relatedactivitiesandthestandardsforthe

remuneration of such employees;

• C workforce development strategies in relation to locals including training plans and projections to address any skill gaps that may have been identified in relation to thelocal labourforce;
• (d)strategies for the support of local participation in the activities of the operator; and
• theexplorationandproductionworkprogramme andbudgetestimatewithregardtothelocal content component of the project.
• (4)An operator shall set out, in the operator's local content plan, the strategies through which the operator shall -
• (a)give first consideration to quality goods produced and services delivered locally; and
• (b)give first consideration to qualified local persons withrespecttoemploymentbytheoperator.
• (5)An applicant shall, subject to the provisions of this Act and for the purposes of subsection (2), include in the local content plan, the following plans -
• (a) employment and skills development plan;
• (b) research and development plan;
• (c)technology transfer plan;
• (d) financial services plan;
• (e) succession plans for positions not held by Kenyans; and
• (f) such other plans as the relevant Cabinet Secretary may prescribe.

Review of local 26.(1) The Committee shall review and assess the local content plan. content plan submitted to it by an applicant under section 25within a period of sixty days from the date of receipt of the plan.

• (2) The Committee shall, in reviewing and assessing the local content plan under subsection (1), carry out public participation and shall, for this purpose—

2. (a)publicise the plan in at least one newspaper of wide circulation in the area with respect to which the extractive activity is to be undertaken and through suchother mediaas theCommitteemayconsider appropriate; 3. (b)involvetherelevantstakeholdersintheextractive industry or persons that are likely tobe affected by the decision to approve the application to engage in theextractive activityandaffordsuchpersonsan opportunity to be heard; and 4. (c) take into account any representations that may be madeto theCommitteeprior tomakingits decision.

• (3) The Committee shall, upon reviewing and assessing a local content plan, inform the applicant of its decision to approve or refuse the approvalof the plan within a period of sevendays from the date ofits decision.
• (4) Where the Committee refuses to approve a local content plan,it shallfurnish the applicantwith awrittenstatement of the reasons for the refusal which shall include recommendations to the application.
• (5) An applicant may, where applicable, within a period of Committee refusing to approve the local content plan and receipt of the written statement under subsection (4), -

8. (a)revisethelocalcontentplantakingintoaccount the recommendationsoftheCommittee;and 9. (b)submit the revised local content plan to the Committee. 10. (6)WheretheCommitteefailstonotifythe applicantof its

Local content certification.

Capacity building.

approval or otherwise of the local content plan or revised local content plan,the local content plan shall be deemed to be approved upon the expiry of ninety days from the date of submission or resubmission of the local content plan, as the case may be.

• 27.(1) The Committee shall prescribe rules on local content certification and in so doing shall
• (a) prescribeamethodologyfor determiningthe percentage of local content in goods and services acquired or delivered in Kenya;
• (b) the specifications to be applied in determining the achievement of theminimumlocal contentlevels and in-country spending for the provision of goods and servicesinthe extractiveindustryvalue chain;
• (c) develop standards for thea accreditation of independent companies to certify such levels of local content;
• (d) accredit independent companies as independent certifying agents under this Act; and
• (e) enforce compliance with the provisions of this Act by accredited independent certifying agents.
• (2)An accredited independent certifying agency shall be responsible for measuring the local content found in goods and services acquired or contracted by an operator under this Act.
• (3)Acertificateissued byan accreditedindependent certifying agency shall be proof of local content compliance by an operator, and shall be attached to the annual reports submitted to the Committeeby an operator under thisAct.
• (4) The Committee shall use the local content certificate to audit the fulfilmentbyan operator,of its obligations tolocal contentdevelopmentunderthisAct.

Employment andSkillDevelopmentPlan

28. (1) An operator shall, in order to develop the skills and Employment and skills developmentplan.

capacityoflocalpersonsandenterprisestoparticipateeffectively strategies and plansfor theutilization of-

• (a)technical service contracts, joint ventures and strategic alliances to broaden opportunities for local persons and enterprises to build capacity;
• (b)technology transfer strategies with local enterprises toprovidecredibleandmeasurableplanson incremental transfer of technological know-how to locals; and
• internships to equip locals at all levels of the extractive value chain with the view to developing a criticalmassof knowledgeable andcompetent national skills pool.

(2)An operator shall,for the purpose of this section,prepare an employment and skill development plan in the form prescribed undersection 29.

29.(1)An operator shallprepareandsubmit tothe Committee, together with its local content plan,an employment andskillsdevelopment planwithrespectto the extractive activity to be carried out by the operator.

• (2)An employment and skill developmentplan submitted under subsection (1) shall include -
• (a) a forecast of the employment and training needs of the operator or other connected entitywhich shall include -
• (i) a specification of the skills needed;
• (ii)the anticipated skill shortages in thelocal workforce;
• (ii) the specific training requirements; and
• (iv)the anticipated expenditure thatwill beincurred bytheoperatororotherconnectedentityin

implementing the employment and training plan;

• (b) a time frame within which the operator,or other connected entity shall provide employment opportunities for the local workforce for each phase of the extractive activityto enablemembers of the local community preparefor such opportunities;
• effortsmadeandproceduresadoptedforthe accelerated training oflocal persons; and
• (d)the information in the implementation of the strategies and plans set out under section 28.
• (3) An operator shall, in addition to the requirement under subsection (1) and upon commencing its extractive activities under thisAct,submit to the Committee a quarterlyreport settingout-
• (a)the employment and training activities undertaken during the reporting period; and
• (b)a comparative analysis of the employment and training plan and the employment and training activitiestomonitorcompliance.
• (4) The quarterly report submitted to the Committee under subsection (3) shall specifythe number of newlocal persons employed duringtherespectivequarter and theirjobdescriptions.
• information with respect to the employment and skills development plan as the Committee considers necessaryfor thepurpose of the implementation of this Act.

Education and training for locals.

• 30.(1) Where local persons are not employed due to their lack of expertise, the operator shall, to the satisfaction of the Committee,-
• (a)make everyreasonable effortwithinareasonable time to supply such training locally; and
• (b) implement strategies for the capacitybuilding of local persons in the respective field.

Consideration of employmentof local persons.

• (2)An operator shallset out theprocedurefortheexecution of the training of local persons in the employment and skill development plan submitted to the Committee under section 29.
• (3)A training carried out by an operator under subsection (1) shall extend to the training of local persons and public officers in the entire value chain of extractive operations.
• (4) An operator shall, for the purposes of subsection (1), prepare in consultation with the Committee, programmes for industrial and technical education and training including the grant of scholarships and implement suchprogrammeswith aview to training local persons to replace foreign personnel as soon as reasonablypracticable and to affording localpersons an opportunityofoccupyingseniorpositionsintheoperations of the operator.
• (5) Localpersons shall beselected and trained in a manner that is consistent with the performance standards of the operator in relation to the extractive activities to be undertaken by the operator.
• 31.(1) An operator shall-
• (a)givefirstconsiderationtotheemploymentof localpersonswhohave therequisite expertise or qualification invarious levels of the extractive operations in accordance with this Act;
• (b) minimise the employment of foreign personnel; and
• (t) ensure that foreign employees are engaged only in positions for which the operator cannot, after reasonable advertisementinatleasttwo newspapers ofwide circulationinKenya and in suchothermediaas theCommitteemay determine, find available Kenyan nationals having the necessary qualifications and experience.

(2)An operator shall,in meeting the requirements set out under subsection(1),- Succession plan.

Strategiesfor transferof technology.

• (a) maintain such reasonable number, as may be determined by the Committee,of local personnel fromthe areathattheoperator carriesout its significant operation;
• (b) not engage in discriminatory practices on grounds of race, nationality, religion,or gender in the conditions of service provided for personnel; and
• (c) determine, in accordance with the existing laws and regulationsthatmaybeprescribedbythe relevant Cabinet Secretary,the rules of employmentincluding salaryscales insuch manner astoensurethat all employees in the same category enjoy equal conditions of employment irrespective of their nationality.
• 32.(1) An operator shall, with respect to each of its operations, submit to the Committee a succession plan for any positionnot heldby a localpersonwithin a period of sixmonths from thecommencementofitsoperations.
• (2)A succession plan shall provide for the understudy,by local persons, of each incumbent foreigner for such period as shall be determinedbytheCommitteeon a casebycasebasis and at the end of such period,the position shall be assumed by the local person.
• (3) All positions held by local persons shall attract salaries, wages andbenefits asmaybesetoutin theconditions ofserviceof the operator with respect to local employees and to the existing labour laws of Kenya.
• (4)An operator shall submit to the Committee, a report on the conditions of service and staff demographyof all persons employed or contracted bytheoperator.

TransferofTechnologyandResearchPlan

• 33.(1) The relevant Cabinet Secretary shall,in consultation withtheCommitteeandincollaborationwiththerelevantState agencies and county governments, -

Fiscal support for thetransferof technology.

Transfer of technology plan.

• (a) formulate a strategic plan on the transfer of technologywith respect tovarious operations in the extractiveindustry;and
• (b) publicise in such manner as it shall consider appropriate, the strategic plan.
• (2)The relevantCabinet Secretaryshallsetout in the strategic plan formulated under subsection (1) -
• (a) the provisions to be included in contracts, agreements, concessions and licences granted to an operatorfor thetransferoftechnologicalknow-how tolocalpersonsin theextractiveindustry value chain;
• (b)a framework for the monitoring and evaluation of the implementation of the policy on transfer of technology;
• C the strategies designed toincrease thecapability and international competitiveness oflocal persons; and
• a roadmap toward the achievement and maintenance of a degree of control by local enterprises over operations in the extractive industry.

34.The relevant Cabinet Secretary shall, for the purpose of facilitating the transfer of technology and expertise and in consultation with the Committee and the relevant State agencies, submit recommendations to the Cabinet Secretary responsible for finance on fiscal incentives and criteria for obtaining the fiscal incentives to facilitate the implementation of activities by -

• (a) foreign companies which aim to develop technological capacityandskillsoflocal enterprises; and
• (b)localpersonswhoestablishfactories andproduction units in the country.

35.(1)Every operator shall prepare and submit to the Committee, together with its local content plan under section 25, a Facilitation of transfer of technology by an operator.

Submissionof technology transfer reports.

plan for the implementation of its transfer of technology programme.

• (2) A plan submitted under subsection (1) shall include --

2. (a)a plan of activities aimed at promoting the effective transfer of technology from the operator to a local company or citizen; 3. (b)the specific requirement for the transfer of technology; 4. the expected outputs; 5. (d) timeframe for the implementation of the activities set out in the plan; and

• e) the anticipated expenditure that will be incurred by the operator.

36. (1) An operator shall facilitate the transfer of technology andshall,forthispurpose 8. (a)prepare and adopt technology transfer agreements withlocalstoprovidecredibleandmeasurable plans onincrementaltransfer of technological know-howtolocals;and 9. b facilitatetheformationor entryintojointventures andpartnering throughlicensingagreements betweenlocal persons and foreign operators or supply companies.

• (2) The Committee shall, for the purpose of this section, prepare an assessment tool for the monitoring and evaluation of the

11. 37.An operator shallnot commenceits extractive activities unless it has prepared and submitted to the Committee,an annual reporton theimplementation of the technologytransferplan and the initiativesbeing undertaken by theoperator in implementing the plan.

Research and development plan.

Implementation ofstrategiesto promote knowledge transfer and research.

Funding of research and development.

ResearchandDevelopmentPlan

• 38.(1)An operator shall,beforethe commencement of its extractive activities,prepare and submit to the Committee,its research and development plan.
• (2)Aresearch and developmentplanshall contain-
• (a)afive-year planof theresearchinitiatives tobe undertaken by the operator inKenya;
• (b)aplanontheexpendituretobeincurredin implementing the research and development plan; and
• (c)requestfor proposals for research anddevelopment initiatives related to the activities of the operator.
• (3) An operator shall -
• (a) annually reviewandupdatetheresearchand developmentplan submitted to the Committeeunder subsection (1); and
• (b) submit the updated plan to the Committee, annually.
• 39.(1) The Committee shall, pursuant to the objectives of this Act, put in place measures and implement strategies in order to bridge the knowledge gap in relation to the extractive industry and promote research and development in the extractive industry.
• (2) The Committee shall, for the purpose of subsection (1), liaise with academic sector regulatory bodies in the formation and review of local training curricula and equipment of training facilities to be fit-for-purpose.
• 40.(1) An operator shall set aside, annually and for the purpose of carrying out research and development activities in Kenya,such percentage of the gross revenue received by the operator as therelevant CabinetSecretaryin consultationwith the Committee may,by notice in the Gazette,prescribe.
• (2) The funds set aside under subsection (1) shall be applied

Cap.412A.

Submissionofa financial services plan.

as follows --

• (a) fiftypercent shallbe allocated toresearch and development programmes in Kenyan universities; and
• (b) fiftypercentshallbeappliedtoresearchand development activitieswithinthefacilitiesof the operator, established inKenya.
• (3) The Cabinet Secretary for finance shall, in consultation with the relevant Cabinet Secretary and for the purposes this section,establish a fund in accordance with the Public Finance and Management Act.

FinancialServicesPlan

41. (1) An operator shall submit to the Committee, together with its local content plan under section 25,a financial services plansettingout- 2. (a) the nature of the financial services required by the operator; 3. (b) a forecast of the financial services required for the durationoftheproject;and 4. (c) the expenditure plan relating to the use of financial services in relation to the project. 5. (2)An operator shall,upon the commencement of its operations under this Act, submit to the Committee, a bi-annual plansetting out- 6. (a) the financial services utilised in the preceding six monthsand theexpenditureincurredby theoperator in the procurement of these services; 7. (b) a forecast of financial services required in the ensuing six months and the projectedexpenditure for the financial services; and 8. (c)the nature of financial services providedand the expenditurefor thefinancial servicesmadeby the operator.

Localcontent performance report.

Assessmentof performance report.

(3)Anoperator and anyconnectedentityshallopenand maintain a bank account with an indigenous Kenyan bank and transact business through banks in Kenya.

(4)The National Government shall,for the purpose of enhancing the local capabilities to participate in the extractive industry value chain, put in place measures, including financial incentives that encourage the use of local financial institutions in financing extractive operations in Kenya.

(5) For the purpose of this section, "an indigenous Kenyan Bank" means a bank that has one hundred percent Kenyan or a majorityKenyanshareholding.

Local ContentPerformanceReporting

42.(1)Anoperatorshallwithinforty-fivedaysofthe commencementofeachyearaftercommencementofextractive activities submit to the Committee,an annual local content performance report covering all its projects and activities for the year under review.

(2)Thereport shall beavailabletothepublicin aformat prescribed by the Committee and shall contain information regarding-

• (a) expenditure by the operator on local content including the current and cumulative cost basis by category; and
• (b)theemploymentachievementintermsofhoursworked bylocalpersons and foreigners as well astheir job positions and remuneration.

43. (1) The Committee shall, within thirty days after receipt of the local content performance report under section 42, assess and review thereport to ensure compliance with theprovisions of this Act.

• (2) For the purposes of assessment and verification of the report,an operatorshallpermitan employeeora designated agent of the Committee access to their facilities,documents and informationastheCommitteemayrequire.

Procurement.

Preferenceof local companies.

Preference of local goods and services.

PARTV-STRATEGIESFORLOCALCONTENT DEVELOPMENT

• 44.(1) An operator shall maintain a bidding process for the acquisitionof goodsandserviceswhichshallprovideafair opportunity to local persons to participate in the provision of goods andservicesinrelationtotheextractiveactivitiestobeundertaken by the operator.
• (2) Any bid relating to extractive industry projects shall provide for the maximum utilization ofgoods andservices available inKenya throughout the extractive industryvalue chain.
• (3) An operator shall, in considering and evaluating a bid in relation to a project in the extractive industry, -
• a) carry out a bidding process in a manner that ensures theequaltreatmentoflocalpersonsand that a fair opportunity is given to local companies to compete in the bidding process;
• (b)take into account the local content; and
• give preference to local persons where the price differentialdoesnotexceedtenpercentof the bidding price quoted by a foreign entity.
• (4)The award of a tender shall not bebased solely on the principle of the lowest bidder where a local company has the capacityto undertake theproject and alocal companyshall not be disqualified solely onthebasis that it is not thelowest financial bidder unless thevalue exceeds thelowestbid priceby ten percent.
• 45.An operator shall give first consideration to a local companyin thegrant of a license or awardof a contract with respect to extractive activities,subject to the fulfilment of the conditions specified in this Act.

46. (1) An operator shall use goods produced in Kenya and services rendered by a local person in preference to similar goods produced outsideKenya and similar servicesrendered by aforeign company in such manner as maybe prescribed under this Act.

Contracting servicesfrom localcompanies

Thresholdsfor Kenyan equity stakein operator.

Cap. 486.

Financial incentives.

• (2) Despite subsection (1),where the goods or services requiredinrelationtoanextractiveactivityarenotavailable locally, the relevant Cabinet Secretary may, subject to such conditions as the relevant Cabinet Secretary may impose, authorise the continued importation of the required goods or service.

2. 47.(1) In granting concessions and other agreements relating toventureswithin theextractiveindustry,theNational Government shallencouragetheestablishmentofjointventurebetween international investors and local business enterprises.

• (2) The Committee shall, in consultation with the relevant Cabinet Secretary, prescribe thresholds to be met by State entities in theprocurement ofcomponents intheextractiveindustryvalue chain that shall be reserved exclusively for local sourcing.

4. the carryingoutof anyextractive orrelated activityunder thisAct maybeprescribedbytherelevantCabinetSecretarywhichshall not beless than thirtypercent. 5. 48.(1) Subject tothe provisions of this Act,the relevant CabinetSecretaryshall,inconsultationwiththeCommitteeand from timetotime,issueguidelines and contractingstandardsonthe thresholdstobe attainedbyeachoperatorwithrespect tothe percentage of localequity ownership of extractive industry companies.

• (2) The interest of a local Kenyan company arising in an agreement orlicencewithrespect to an extractive activityshall be transferable to a non-indigenous Kenyan company in accordance with the provisions of the Companies Act.

49. The Cabinet Secretary responsible for matters relating to finance may, in consultation with the Committee - 8. (a) implement taxincentives for the promotionof capacitybuilding and training in various aspects of the extractive industry; 9. (b) adopt supportive and non-distorting tariff measures to

Fund for Training andDevelopment.

Annual work programmes.

• expedite the expansion of the capabilities of local enterprises to meet the objectives of this Act; and
• (c) allow tax deductibility for certain categories of training expenditure, including research and development expenditure, where the training is for the benefit ofKenyan nationals.
• 50.(1) There is established a fund to be known as the Local Content Training and Development Fund.
• (2) An operator shall annually remit a tax-deductible training levy consisting of such percentage of its net revenues as the relevant Cabinet Secretary may, in consultation with the Committee, prescribe to the Fund in support of the objectives of this Act.
• (3) The Cabinet Secretary responsible for matters relating to mining shall, in consultation with the Cabinet Secretary responsible for matters relating to oil, gas and other petroleum resources and the Committee, prescribe in regulations under the Act the manner in which the Fund shall be operated and applied.

PARTVI-MISCELLANEOUSPROVISIONS

• 51.(1) An operator shall prepare and submit to the Committeean annualworkplan of theprogrammes andbudget with respect to an extractive activity by the operator.
• (2) An operator shall,in preparing an annual programme and budget, set out -
• a) an estimate of thelocal content component of the extractive activity;and
• (b)the activities thatare tobeundertakeninrelation to the extractive project.
• (3) The Committee shall, upon receipt of the annual work planundersubsection(1),-
• (a)determine the specific projects which shall be subject toprocurementinaccordancewiththis

Monitoringlocal contentof expenditure incurred.

Act; and

• (b) publish in at least two newspapers of wide circulation,in its website and such other media as the Committee shall consider appropriate, the list of the projects and detailsrelating to the specific projects.
• (4) All tenders in the extractive industry shall only be advertised, evaluated and awarded in Kenya.
• (5)Anoperator whointendstoadvertiseatender in the extractive industry outside Kenya shall apply for, and obtain the approval of the relevant Cabinet Secretary prior to such advert.
• 52.(1) An operator shall maintain the records relating to its operations in such proper form as to facilitate the determination of the local content expenditure incurred by the operator with respect to its operations under this Act.
• (2) The records maintained by an operator under subsection (1) shall include supporting documentation certifying the cost of local goods,labour andlocal services procured by the operator and shallbe subject toauditbytheCommittee or such other agent appointed by the Committee for that purpose.
• (3) An operator shall, for the purpose of subsection (2), submit to the Committee,an annual statement of local content which shall include information regarding the-
• (a) payments made to local licensees who supply local goods and local services to the operator;
• (b) payments to local suppliers who supply local goods;
• ()payments tolocal licensees andlocal suppliers for providing a service in the supply of non-local goods;
• (d) payments made to non-local licensees and suppliers who supply local and non-local goods;
• (e) payments of salaries, profits, dividends on shares and other tangiblespaidtopersonswhoareKenyan

Impact assessment.

nationals; and

• (f)list of all contracts awarded during the period under consideration and services or equipment contracted.
• (4) For the purpose of determining the level of local content in respect of an operation under this Act,the Committee or accredited independent certifying agency under section 24 shall-
• (a) takeintoaccountallcostsincurredas direct materials, direct sub-contracts, indirect materials, indirect subcontracts, construction management and other costs;and
• (b)not include anytaxes or other statutorypayments to government including payments made under contract orconcessionagreements.
• 53.(1)TheCommitteeshallmonitorandevaluate compliance by every person under this Act of the obligations imposed on such person under this Act.
• (2) The Committee shall prepare and submit to the relevant Cabinet Secretary, a report on its activities under subsection (1) and shall, for this purpose, set out information on -
• (a) each licensed extractive operation;
• (b) theextent towhichState entitiesmandatedto implement specific obligations have so acted;
• State agency under this Act and the reasons for such observation;
• (d) strategiesforcorrectivemeasuresspecifying the authoritytoimplementtheobjectivesthatareyetto beattained;and
• (e) recommendbestpractices forgreater andfaster attainment of the objectives of the Act.
• (3)TheCommittee shall evaluate theperformance of the

Reporting by a connected entity.

Support measures.

Public participation.

National Government against the objectives of this Act, and shall prepare and submit to the relevant Cabinet Secretary and to the Senate, an annual performance report.

54.(1) An operator shall ensure that its partner, contractor, subcontractor or anyotherconnectedentityis contractuallybound to report local content information to the operator and, if requested, to theCommittee.

(2)An operator or connected entityshall permit an agent designated bytheCommitteeto access therecordsof theoperator or connected entity for the purposes of assessment and verification of thelocalcontent informationreported by an operator or connected entity under thisAct.

55.(1)TheCommittee shall make recommendations to the relevant CabinetSecretaryontheimplementation ofstrategiesthat wouldfacilitate and sustain the adoption of local content under this Act.

(2) In making its recommendations under subsection (1), the Committeeshall takeinto account thestateofdevelopmentof the local private sector, and may, propose strategies for the-

• (a) provision of affordable financial assistance including low-interestloansandpreferentialcontractsfrom State agencies;
• (b) provision of below-market loans for projects with significant domestic content;
• (c) promotion of local assembly industries through incentivesthatpromote the importation of components and discourage the importation of fully assembled industrial equipment;
• (d) provision of export credit assistance;
• (e) implementation of affirmative action with respect to local labour through limitations on the engagement of foreign personnel.
• 56.(1) The relevant Cabinet Secretary shall, in consultation

Cap. 265.

with the Committee, prescribe guidelines for the conduct and promotion of public participation of stakeholders in the extractive industry or affected by a project carried out under this Act.

• (2) In carrying out public participation under this Act, an operator, the Committee and any other person required to undertake public participation shall -

2. (a)be guided by the principles of citizen participation in counties set out under section 87 of the County Governments Act; 3. (b)conduct the public participation through such means asmaybenecessarytoensurethat the greatest number of citizens within the respective county and the relevant stakeholders-- 4. (i)are informed of any decision to be undertaken under this Act which affects them; and 5. 11 have an opportunity to participate in the decision-making process including the submission of any memorandum or information that they may have with respect to thematter;and 6. employ suchmeasures as maybenecessary to ensure maximum efficiency in public participation including usage of the structures for citizen participation established by a county government pursuant to section 91 of the County Governments Act.

• (3) The Committee shall, for the purpose of subsection (1)—

8. (a) developthehumanresourcesintheextractive industrythrough education and training activities; 9. (b)stimulate and increase the participation of the local communities in thehuman resources development activities, improving the capability of the locals and small-scale businesses to engage in the provision of

goods and services in the extractive industry chain;

• () stimulate and direct the participation of professional associations andorganizationsin thefield of local content;
• (d)stimulate and support the activities of technological researchanddevelopmentinthe extractive industry;
• (e) carryoutpublic educationactivities in order to educate operators, the public and industry stakeholdersonlocal content policy and requirementsfor theimplementation of thisAct; and
• (f)promoteinternational cooperation in the extractive industry in accordance with the national interest.
• (4)In carrying out the activities specified under subsection (3) the Committee shall promote -
• (a) the involvement of the National Government in the settingofpoliciesandplansfor theimplementationof the objectives of this Act;
• (b) engagement with county governments in their interactions with the National Government, the operatorsandconnectedentitiesengagedinthe extractive industry;
• (c) co-operation between non-state actors including community-based organisations and nongovernmental organisations and the State agencies in advocacy, provision of local services and capacity building; and
• (d)involvement of local communities in identifying their needs, enhancing their capacity to produce and deliver goodsandservices thatmeet theestablished standards and to engage in various stages of the extractiveindustryvalue chain.

Offences and penalties.

• 57.(1) A person who submits a plan,returns,report or other document and knowingly makes a false statement,commits an offence and shall be liable, upon conviction, to a fine of not more than two million shillings or to imprisonment for a term of not more than threeyears, or to both.
• (2) A Kenyan citizen who acts as a front or connives with a foreign citizen or company to deceive the Committee as representing an indigenous Kenyan company to achieve the local content requirement under this Act,commits an offence and is liable,on conviction, to a fine of not more than three million shillings or to imprisonment for a term of not more than five years, ortoboth.
• (3)Aperson whoconniveswithaKenyan citizenor an indigenous Kenyan company to deceive the Committee as representing an indigenous Kenyan company to achieve the local content requirement under thisAct commits an offence and shall be liable,on conviction,to a fine of not more than three million shillings or to imprisonment for a term of not more than five years, or to both.
• (4)Anoperator or other connectedentitywhich-
• (a)carriesout extractive activities without therequired local content requirement;
• (b) fails to submit a local content plan;
• (c) fails to satisfy the content requirement of a local content plan; or
• (d)fails to submit itslocalcontent performance report or annual work plan to the Committee,

commits an offence and is,on conviction,liable to a fine of five percent of the value of the proceeds obtained from the extractive activityinrespect ofwhichthebreachis committed but which shall not exceed two million shillings, or to the cancellation of a contract with respect to the extractive activity.

• (5) A person who is convicted of an offence under this Act

Offence by a body corporate.

Revocationof licence.

Regulations.

for which no penalty is provided shall be liable to a fine not exceeding eight hundred thousand shillings, or to imprisonment for a term not exceeding twelve months, or to both.

58.(1)Where an offence is committed by a body corporate or an association of persons under this Act, a person—

• a) who is its director, officer, or partner; or
• b) who is concerned in the management ofits affairs,

at the time of the commission of the offence,is deemed to have committed that offence unless that person proves that the offence was committed without the consent or connivanceof thatperson and that theperson exercised diligencetoprevent the commission of the offence as the person ought to have exercised, having regard to the nature of the person's function in that capacity and to the circumstances.

• subsection (l)notwithstanding that the body corporate or association of persons has notbeen convicted of the offence.
• (3) Subsection (1) shall not affect the liability of the body corporateor association ofpersonsfor theoffencereferredtoin that subsection.

59. The relevant Cabinet Secretary may revoke or suspend the licence issued to an operator that is subsequently convicted of an offence under this Act for such period as may be prescribed; 60. (1) The Cabinet Secretary responsible for matters relating to mining shall, in consultation with the Cabinet Secretary responsible for matters relating to oil,gas,and other petroleum resourcesand theCommittee,makeregulationsgenerallyfor the better carrying out of the provisions of this Act.

• (2)Notwithstanding the generality of subsection (1), the Cabinet Secretaries may make Regulations -
• a) settingouttheminimum standardsrequired tobe met by operators and connected entities under this Act;

Cap. 2.

• (b) the minimum standards, facilities, personnel and technologyfor the trainingofpersonnel in the extractive industry;
• (c)for the conditions and targets for the formation of joint ventures or partnerships between multinationalentitiesand1 manufacturingor Service companiesin all sectors of the economy and certified indigenous companies for the purpose of technology acquisition;
• (d) setting out targetsfor the utilization and growth of in-country capacity of companies in Kenya in the respective extractive activities along the value chain;
• (e)settingout therequirementsandtargetsfor growth in research and development of the extractive industry inKenya;or
• settingoutdetailsofinformationrequiredtobe submitted by an operator or connected entity under this Act;
• (3) Regulations made under subsection (2) may prescribe different standards and other requirements—
• (a)for services of different types or descriptions rendered in relation to neglected children; and
• (b) in respect of different kinds of licencing.
• (4) For the purposes of Article 94(6) of the Constitution -
• (a)the authorityof the county executive committee member to make Regulations shall be limited to bringing into effect the provisions of this Act and thefulfilment of the objectives specified under subsection (1); and
• (b) the principles and standards set out under the InterpretationandGeneralProvisionsActandthe

Cap. 2A.

Existing contracts and agreements.

Amendmentto Cap.306.

Amendment to Cap.308. Amendment to

Cap.314.

Statutory Instruments Act,2013 in relation to subsidiary legislation shall apply to Regulations made under this Act.

PARTVII-TRANSITIONALPROVISIONS

61. Upon the commencement of this Act, all oil and gas arrangements, agreements, contracts or memoranda of understanding relating to any operation or transaction in the extractive industry in Kenya-

• (a) existingbeforethecommencementof thisActshall continue in force as if entered into pursuant to this Act; and
• b enteredintoafterthecommencementofthisActshall be in conformitywith theprovisions of thisAct.

62. The Mining Act is amended by

• (a) repealing Section 46;
• (b) repealing Section 47;
• (c) repealing Section 49; and
• (d) repealing Section 50.

63. The Petroleum Act is amended by deleting Part VI. 64. The Energy Act is amended by

• (a) in section 10 by repealing paragraph (ee);
• (b) repealing Section 206; and
• (c) repealing Section 207.

SCHEDULE (s. 17) PROVISIONSRELATINGTOTHECONDUCTOF MEETINGSOFTHECOMMITTEE

• 1.The Committeeshallmeet at least once in every three months to conduct the business of the Committee.
• 2.The chairperson may on his or her own motion,or upon request by a member,call a special meeting of the Committee at any time, where he or she considers it expedient for the transaction ofthebusinessoftheCommittee.

3. Other than a special meeting, or unless three quarters of members agree,at least fourteen days'written notice of every meeting of the Committee shall be given to every member of the CommitteebytheDirector. 4. The quorum at a meeting of the Committee shall be half of the members or such greater number as maybe determined by the Committee in respect of an important matter.

• 5.The chairperson shall preside at the meetings of the Committee and in the absence the chairperson, the vicechairpersonoramemberof theCommitteeelectedbythe members present from among their number shall preside.
• 6.The mattersof the Committee shallbedecided bya majority of thememberspresent andvoting and in theevent of equality of votes, the person presiding shall have a casting vote.

7. The proceedings of the Committee shall not be invalidated byreasonof avacancy amongthemembersor a defect in the appointment or qualification of a member. 8. At the first meeting of the Committee, the members shall elect a vice-chairperson, not being an ex-officio member, from among its members.

• 9.Subject to the provisions of this Schedule, the Committee may determine its own procedure and the procedure for any subcommitteeof theCommitteeandfor attendanceof anyother persons at the meetings and may make standing orders in respect thereof.