Report On Consideration Of The Energy (amendment) Bill (senate Bill No. 42 Of 2023)

REPUBLICOFKENYA THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FOURTHSESSION-2025

DIRECTORATEOFDEPARTMENTALCOMMITTEES

DEPARTMENTALCOMMITTEEONENERGY

REPORTONTHECONSIDERATIONOF THEENERGY(AMENDMENTS)BILL(SENATE BILL NO. 42 OF 2023)

CLERK'SCHAMBERS DIRECTORATEOFDEPARTMENTALCOMMITTEES PARLIAMENTBUILDINGS NAIROBI

DECEMBER,2025

Tableof Contents

| LISTOFABREVIATIONS CHAIRPERSON'SFOREWARD | LISTOFABREVIATIONS CHAIRPERSON'SFOREWARD | LISTOFABREVIATIONS CHAIRPERSON'SFOREWARD | |-----------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------| | PARTI | PARTI | PARTI | | 1.0 | PREFACE | PREFACE | | 1.1. Introduction | 1.1. Introduction | | | 1.2. | 1.2. | MandateoftheCommittee 5 | | 1.3. | 1.3. | | | 1.4. Committee Membership | 1.4. Committee Membership | 6 | | 1.5. CommitteeSecretariat | 1.5. CommitteeSecretariat | | | PARTII 8 | PARTII 8 | PARTII 8 | | 2.0 | OVERVIEWOFTHEENERGY(AMENDMENT)BILL,(SENATEBILLNO.42OF2023) 8 | OVERVIEWOFTHEENERGY(AMENDMENT)BILL,(SENATEBILLNO.42OF2023) 8 | | 2.1. SalientProvisionsoftheBill | 2.1. SalientProvisionsoftheBill | X | | 2.2. | 2.2. | AlignmentwithLegal Frameworks X | | 2.3. | 2.3. | AdvantagesofEnactment of theBill 9 | | 2.4. | 2.4. | Disadvantages ofEnactment of theBill. 9 | | PARTIII 11 | PARTIII 11 | PARTIII 11 | | 3.0 | PUBLICPARTICIPATION/STAKEHOLDERSCONSULTATION 11 | PUBLICPARTICIPATION/STAKEHOLDERSCONSULTATION 11 | | 3.1. Submissions by the Ministry of Energy and Petroleum. | 3.1. Submissions by the Ministry of Energy and Petroleum. | 11 | | 3.2. Submissions by the Sosian Energy Limited. | 3.2. Submissions by the Sosian Energy Limited. | 13 | | PARTIV 14 | PARTIV 14 | PARTIV 14 | | 4.0 | COMMITTEEOBSERVATIONS 14 | COMMITTEEOBSERVATIONS 14 | | PARTV. .15 | PARTV. .15 | PARTV. .15 | | 5.0 | COMMITTEERECOMMENDATIONS 15 | COMMITTEERECOMMENDATIONS 15 | | LISTOFANEXURES 16 | LISTOFANEXURES 16 | LISTOFANEXURES 16 |

LIST OFABREVIATIONS

EPRA

Energy and Petroleum Regulatory Authority

EPAs

Energy Purchase Agreements

MW

Megawatts

MWh

Megawatts perHour

NDC

NationallyDetermined Contributions

PPAs

Power Purchase Agreements

KPLC

Kenya Power &Lighting Company

PFM

Public Finance Management

PPP

Public Private Partnership

PPAD

Public Procurement and Asset Disposal

CHAIRPERSON'SFOREWORD

This report details the consideration by the Departmental Committee on Energy of the Energy (Amendment) Bill (Senate Bill No. 42 of 2023). The Bill seeks to amend the Energy Act, Cap. 314 to create transparency in the purchase of electric energy from private generators, ensure the contracts entered into are financially sound to protect the end user of electricity from inflated electricity costs.

The Bill was published on 30th October, 2023 and read a First Time in the House on 24th April 2025. It was thereafter committed to the Departmental Committee on Energy for consideration and reporting to theHousepursuant to theprovisionsof StandingOrder 127.

Article 118(1) (b) of the Constitution and Standing Order 127(3) require Parliament to facilitate public participation and involvement in the legislative and other business of Parliament and its Committees. In compliance with the foregoing, through the placement of adverts in the print media on 15th May 2025 (Annex 3), the National Assembly invited the public and interested stakeholders to submit memoranda on theproposed amendments.

Further, vide its letters dated 12th June 2025 and 18th July 2025, the Committee invited the Ministry of Energy andPetroleum for a meeting on the 29th July 2025 to give their comments and proposals on the Bill.In addition,the Committee vide its letter dated 1st October 2025,invited other stakeholders including Orpower 4 Inc, Kipeto Energy PLC, Sosian Energy Limited and Lake Turkana Wind Power Ltd for a meeting to give their comments and proposals on the Bill.

The Committee thereafter held meetings where submissions were received and the presentations consideredbeforetheadoptionofthisreport.

Having considered the proposed amendments of the Energy Act, Cap. 314 and based on analysis of submissions by the Ministry of Energy and Petroleum and Sosian Energy Limited, the Committee made observations for each of the proposed amendments to the Energy (Amendments)Bill as contained inPart IV of this Report.

The Committee having reviewed the Energy (Amendment) Bill (Senate Bill No. 42 of 2023) recommends that the House approves theBill with amendments as proposed in theSchedule in Part six of this report.

Hon. David Gikaria, CBS, M.P. ChairpersonDepartmental Committee onEnergy

1.0PREFACE 1.1. Introduction

• 1.This report details the consideration by the Departmental Committee on Energy of the Statute Law (Miscellaneous Amendments) Bill (Senate Bill No. 42 of 2023).

2. The Bill was published on 30th October, 2023 and read a First Time in the House on 15th December,2022.Itwas thereafter committed to theDepartmental Committee onEnergyfor consideration and reporting to the House pursuant to the provision of Standing Order 127. Specifically, the Committee considered amendments proposed to the Energy Act, Cap.314.

1.2.MandateoftheCommittee

• 3.The Departmental Committee on Energy is established pursuant to the National Assembly Standing Order No. 216. The functions and mandate of the Committee include, among others, "to study and review all legislation referred to it".
• 4.The subject matter under the purview of the Departmental Committee on Energy are stated in the Second Schedule of the National Assembly Standing Orders as follows:The Committee is mandated to consider matters relating to the Fossil Fuel Exploration, Development, Production, Maintenance and Regulation of Energy.

1.3. Oversight

5. In executing its mandate, the Committee oversees the following State Departments: The State Department for Energy and TheStateDepartment for Petroleum.

PARTI

1.4.Committee Membership

• 6.The Departmental Committee on Energy comprises of the following Members:

Chairperson

UDA Party

Hon. David Gikaria,CBS, MP Nakuru Town East Constituency

Vice-Chairperson

Hon. Lemanken Aramat, MP Narok East Constituency

UDA Party

Members

| Hon. Charles Gimose, MP Hamisi Constituency ANC Party Hon. Walter Owino, MP Awendo Constituency ODM Party | Hon. Siyad Amina Udgoon, MP Garissa County Jubilee Party Hon.BarongoNolfason Obadiah.,MP BomachogeBorabu Constituency ODM Party | |-------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

1.5.CommitteeSecretariat

7.The Committee is facilitated by the following technical staff representing the office ofthe Clerk:

Mr.Fredrick O. Otieno ClerkAssistantI/HeadofSecretariat

Mr. Salim Athuman ClerkAssistantIII

Ms. Brigitta Mati Senior Legal Counsel

Mr. Brian Njeru Fiscal Analyst II

Mr. Robert Langat Research Officer III

Mr.Ambrose Nguti MediaRelationsOfficerII

Ms. Viola Saiya Research OfficerIII

Ms. Lillian Aluga PublicCommunicationsOfficer

Mr.Anthony Wamae Serjeant-At-Arms

Mrs. Rehema Koech Audio OfficerII

PART I

2.0 OVERVIEW OF THE ENERGY (AMENDMENT) BILL, (SENATE BILL NO.42 OF 2023)

8. The Energy (Amendment) Bill, (Senate Bill No. 42 of 2023), sponsored by Senator Edwin Sifuna, MP, seeks to amend the Energy Act, Cap.314. The Bill proposes the introduction of transparency, accountability, prudent financial management, and public participation. The Bill was published on 30th October, 2023 and read a First Time in the House on 24th April, 2025. 9. Pursuant to Standing Order 127(1), the Bill was committed to the Departmental Committee on Energy for consideration. 10. The Bill seeks to amend the following law, which is relevant to the Departmental Committe on Energy: The Energy Act, Cap. 314. 11. The Bill aims to ensure greater transparency and accountability in the procurement of electric energybyrequiringdisclosureofbeneficialownershipandadherencetotheprinciples enshrinedinArticle201of theConstitutionofKenya.Itendeavorstoestablishastatutory mechanism for regulating the conduct of EPAs between generating entities and licensed purchasing entities, including Kenya Power and Lighting Company.

2.1.Salient Provisions of the Bill

12.Insertion of Section134A:

• a)Subsection(1) authorizes generating entities to enter intoEPAs with specified licensed entities.
• b)S Subsection (2) mandates that EPAs comply with the principles of public finance underArticle201of theConstitution.
• Subsection (3) imposes obligations on purchasing entities to conduct feasibility studies,follow procurement procedures, and prioritize renewable energy.
• Subsection (4) requires generating entities to disclose beneficial ownership in accordance with the Companies Act,No.17 of 2015.
• Subsections (5) and (6) obligate purchasing entities to maintain and publish a registerof EPAs andbeneficial ownershipdata.
• to withhold approval of non-compliant EPAs.

2.2.Alignment with LegalFrameworks

13. Constitution of Kenya, 2010: Article 201 sets forth principles of public finance including accountability, transparency, public participation, and prudent use of public resources. 14. Public Procurement and Asset Disposal Act, Cap. 412C: Governs procurement procedures applicabletoEPAs.

15. Companies Act, Cap.486: Provides for the disclosure of beneficial ownership. 16. Access to Information Act, Cap.7M: Guarantees the public's right to access information includingregistersofEPAs. 17. Energy Act, Cap.314: The principal statute being amended to enhance governance in the energysector.

2.3.AdvantagesofEnactmentoftheBill

18. Legal and Institutional Transparency: The Bill imposes a mandatory disclosure regime, thereby fortifying anti-corruption measures and preventing the concealment of ownership through opaque corporate structures. this aligns with international best practices concerning beneficial ownershiptransparency. 19. Promotion of Good Governance and Fiscal Responsibility by anchoring procurement and contractual engagements within the framework of Article 201, the Bill ensures that energyrelated public expenditure is managed prudently and with due regard to sustainability. 20. Strengthening of Regulatory Oversight: The conferment of discretionary powers upon EPRA to disapprove non-compliant EPAs enhances the agency's regulatory leverage and enables enforcement of compliance standards. 21. Support for Renewable Energy Transition: The prioritization of dispatchable and renewable energy sources in EPAs supports national commitments under the Paris Agreement and promotes environmental sustainability. This means that Kenya's Nationally Determined Contributions (NDCs) under the Paris Agreement commit the country to:

• i. Reduce GHGEmissionsBy32%By 2030;
• ii. Expand investment in Clean and Renewable Energy Sources, including solar, wind, hydro, and geothermal;
• iii. Implement Climate-Resilient Energy Infrastructure and adopt measures to mitigate the carbon intensity of energy generation.

22. Public Participation and Access to Information: The Bill requires the publication of EPA registers and beneficial ownership on public platforms, thereby facilitating citizen engagement and oversight.

2.4.Disadvantages of Enactment of the Bill

• 23.Increased Administrative and Compliance Burden: The statutory requirements for feasibility studies, register maintenance, and beneficial ownership disclosures may overburden purchasing entities, particularly in terms of time, financial, and human resources.

24. Risk of Delayed Project Implementation:Enhanced procedural requirements and regulatory scrutiny may prolong the timeframes for negotiating and executing EPAs, potentially delaying energygenerationprojects.

25. Legal and Contractual Uncertainty: Existing EPAs that were entered into under the previous legal framework may become the subject of dispute or renegotiation, especially if they are inconsistentwiththenewstatutoryrequirements. 26. Institutional Capacity Constraints: The effective implementation of the Bill will require institutional strengthening of regulatory and purchasing entities, which may not currently possess the requisite technical or administrative capacity.

PARTIII

3.0PUBLICPARTICIPATION/STAKEHOLDERSCONSULTATION

• 27.Followingthecallformemorandafrom thepublicthroughplacementof adverts in theprint media on Thursday,15th May2025 and videaletters Ref: NA/DDC/ENERGY/CORR/2025/048andRef:NA/DDC/ENERGY/CORR/2025/077dated 18th July 2025 and 1st October 2025 respectively inviting stakeholders for a meeting, the Committee received comments from the Ministry of Energy and Petroleum and Sosian Energy Limited.

3.1. Submissions by the Ministry of Energy and Petroleum

In a meeting with the Committee held on Tuesday, 29th July 2025, the Principal Secretary State DepartmentforEnergymadethefollowingsubmissions ontheBill:

28. THAT, Section 134A (1) be amended to include both Energy and Power Purchase Agreements. Justification:This commercial transaction is referred to as an energypurchase agreement intechnicallanguage.However,thereisadifferencebetweenEnergyinMegawattHour (MWh)andPowerinMegawatt(MW)andthuswhilethisiswellintended,itcouldmeanthat theproposalsrestrictKPLCfrom enteringintofirmPowerPurchaseAgreement.Energy planningisdonewithregardtopowernotenergy.Secondly,KPLCentersbothintoPower Purchase Agreements (PPAs) and Energy Purchase Agreements (EPA).Power plants are designedinMWnotMWh.Essentially,PPAsensurethatpowerisavailableduringthetime isrequiredwhileenergyisaderivativeofpower.Itis,therefore,proposedthatthe amendmentsshouldmakereferencetobothEnergyandPowerPurchaseAgreements.

CommitteeObservations

The Committeeobserved thatSection134A(1)refersonly toEnergyPurchaseAgreements, yetsectorpracticeshowsthatKenyaPowerroutinelyentersintobothPowerPurchase Agreements(PPAs)and Energy Purchase Agreements(EPAs).The Committee further observedthatthetwoinstrumentsarenotidentical:PPAsrelatetotheavailabilityofpower measuredinmegawatts(MW),whileEPAsrelatetothepurchaseofenergymeasuredin megawatthours(MWh).

Committeerecommendation

TheCommitteerecommendsthattheBillbeamendedbyinsertinganewclause1Athat amendssection2oftheEnergyAct,Cap.314asfollows:

Section 2 of theEnergyAct be amended byinserting thefollowing definition in itsproper alphabeticalsequence-

• 29."EnergyPurchaseAgreement"meansa contractbetweenalicensedpowerproducer and an electricity buyer for the supply of energy measured in megawatt hours,and also includes a PowerPurchaseAgreement for thesupplyof power measured in megawatts,together with all related terms on pricing, delivery, obligations of the parties, and the duration of the agreement. THAT, Section 134A (2) be amended by deletion of proposed provision.

Justification:

TheConstitutionunderArticle227,providestheguidingprincipleinpublicinfrastructure development.In procuring theof goods andservices a public entity shall doso ina system that is fair, equitable, transparent, competitive and cost-effective. These principles have been emphasizedinboththePFMActandthePPPAct.

CommitteeObservations

The Committee observed that the principles listed in theproposedSection134A(2) are already fully provided for in the Constitution and existing statutes.Article 227of the Constitution sets out the mandatory principles for public procurement of goods and services, including fairness, equity,transparency,competitiveness, and cost-effectiveness, which apply to all public infrastructure contracts, including energy and power purchase agreements. The Committee therefore found that restating these principles inSection 134A(2) is unnecessary and may create duplication. For this reason, the Committee recommends deletion of the proposed subsection.

CommitteeRecommendation

THAT, the Bill be amended in the proposed new section134A by deleting subsection (2).

Justification:

Theapplicableconstitutionalandfinancialprinciplesarealreadyadequatelyaddressedin existinglegislation.

30. THAT, Section 134A (3) be amended by deletion of proposed provision.

Justifications:

Therequirementforspecificfeasibilitystudies asaconditionforthesign-offofenergypurchase andpowerpurchaseagreementsshouldbedeletedprovidedthattheagreementsareinlinewith theLeastCostPowerDevelopmentPlanandimportantlydrivenbyneedforaddedpower supplytothegridandnotarbitrarycontractualcommitments;

MostpowerpurchasecontractsaredoneunderthePublicPrivatePartnershipAct,Cap.430 (PPPAct)includingtheframeworkundertheFeedInTariffPolicy(FiTPolicy),whichhas demonstrateditsabilitytomanageanddelivercontractsunderveryshorttimelines.Itis importanttonotethattheprocurementregimeproposedintheseamendmentsandas contemplatedunder thePublicProcurementand AssetsDisposalAct,Cap.(PPADAct)is principallyforconventionalprocurement.Theproposalfortherequirementfortheapplication ofthePPADActintheprocurementofpowershouldthereforebedeleted.Therequirementfor compliancewith theConstitution and PublicFinancePrinciplesis goodenough.

CommitteeObservations

TheCommittee observed thatthe proposedsubsection(3)introduces procurement requirementsthatarealreadyaddressedunder existinglawsandpoliciesgoverningthe energy sector.TheCommitteefurther notedthatfeasibility studiesfor new power commitments are adequatelycovered through the Least Cost Power DevelopmentPlan. which guides system expansion and determines actual need. It also noted that most power purchase arrangements are undertaken within the framework of the Public Private PartnershipAct.whichprovides anestablished and efficient process forprocuringgeneration projects,particularlythosethataresite-specificsuchasgeothermal,wind,solar,andmall hydros.The Committee found that applying thePublicProcurement and Asset Disposal Act tosuchprojectsmayconflictwith thePPPActand couldundermine theeffectivenessand timelines of energy procurement. The Committee concluded that the proposed subsection duplicates existing legal requirements and may create inconsistencies.

CommitteeRecommendation

THAT, the Bill be amended in the proposed new section 134A by deleting the subsection (3).

Justification:

Toavoidduplication,legalconflict,andunintendeddisruptionofestablishedprocurement processesunderthePpPframework

31. THAT, Section 134A (4)(5) and (7) be amended to include Power Purchase Agreement.

Justification:Comments outlining differencein energy and power purchase agreements.

CommitteeObservations

The Committee observed that Section 134A(4) (5) and(7)refers only toEnergy Purchase Agreements,yetsectorpracticeshows thatKenyaPowerroutinely entersintobothPower Purchase Agreements (PPAs) and Energy Purchase Agreements (EPAs). The Committee furtherobserved thatthetwoinstruments arenotidentical:PPAsrelatetothe availabilityof power measured in megawatts (MW), while EPAs relate to the purchase of energy measured in megawatt hours (MWh).

Committee Recommendations

TheCommitteerecommendsthat theBill beamended byinserting a new clause1A that amends section 2 of the Energy Act, Cap. 314 as follows:

Section 2 of the Energy Act be amended by inserting the following definition in its proper alphabetical sequence

"Energy Purchase Agreement" means a contract between a licensed power producer and an electricitybuyerfor the supplyof energy measuredin megawatt hours,and also includes a Power Purchase Agreement for the supply of power measured in megawatts, together with all related terms on pricing, delivery, obligations of the parties, and the duration of the agreement.

The introduction of the new definition cures the ambiguity.

3.2.Submissions by the Sosian Energy Limited

32. In a meeting with the Committee held on Thursday, 9th October 2025, the Managing Director, Sosian Energy Limited, Mr. Venu Gopal, submitted that the Company fully supports the Bill in itsentiretywithoutanyamendments.

4.0COMMITTEEOBSERVATIONS

33.Having considered theBill, the Committee made thefollowing observations:THAT;

• 1)TheBill proposes theintroduction of Section134A togovernEnergyPurchaseAgreements (EPAs) with an emphasis on transparency, accountability, prudent financial management, andpublicparticipation;
• 2) The Bill aims to ensure greater transparency and accountability in the procurement of electric energy by requiring disclosure of beneficial ownership and adherence to the principles enshrined in Article 201 of the Constitution of Kenya.It endeavors to establish a statutory mechanismfor regulating the conduct of EPAs between generating entities and licensed purchasing entities, including Kenya Power and Lighting Company.
• 3)Section 134A(1) refers only to EnergyPurchase Agreements,yet sector practice shows that KenyaPower routinely enters intobothPowerPurchaseAgreements(PPAs)and Energy PurchaseAgreements(EPAs).TheCommitteefurtherobserved thatthetwoinstruments are not identical: PPAs relate to the availability of power measured in megawatts (MW), while EPAs relate to the purchase of energy measured in megawatt hours (MWh).
• 4 The principles listed in the proposed Section134A(2) are already fully provided for in the Constitution andexistingstatutes.Article 227of theConstitutionsets out themandatory principles for public procurement of goods and services, including fairness, equity, transparency, competitiveness, and cost-effectiveness, which apply to all public infrastructure contracts,including energy and powerpurchase agreements.The Committee thereforefound thatrestatingtheseprinciplesinSection134A(2)is unnecessaryandmay createduplication.For thisreason,the Committee recommends deletion of theproposed subsection.
• 5) The proposed subsection (3) introduces procurement requirements that are already addressed under existing laws and policies governing the energy sector. The Committee further noted that feasibility studies for new power commitments are adequately covered through theLeast CostPowerDevelopmentPlan,whichguidessystemexpansion and determines actual need. It also noted that most power purchase arrangements are undertaken within theframework of thePublicPrivatePartnershipAct,which provides an established and efficient process for procuring generation projects, particularly those that are sitespecific such as geothermal, wind, solar, and small hydros. The Committee found that applying thePublicProcurement and Asset Disposal Act to such projects may conflict with the PPP Act and could undermine the effectiveness and timelines of energy procurement. The Committee concluded that the proposed subsection duplicates existing legal requirementsandmaycreateinconsistencies.
• 6 Section 134A(4) (5) and (7)refers only to Energy Purchase Agreements, yet sector practice shows thatKenyaPowerroutinelyentersintobothPowerPurchaseAgreements(PPAs)and Energy Purchase Agreements (EPAs). The Committee further observed that the two instruments are not identical:PPAs relate totheavailability of power measuredin megawatts (MW), while EPAs relate to the purchase of energy measured in megawatt hours (MWh).

PARTIV

PARTV

5.0COMMITTEERECOMMENDATIONS

34. The Committee having reviewed the Energy (Amendment) Bill (Senate Bill No. 42 of 2023) recommends that the House approves theBill with amendments as proposed below:

• 1) THAT, the Bill be amended by inserting a new clause 1A that amends section 2 of the Energy Act, Cap.314 as follows:

Section 2 oftheEnergyAct be amended by inserting the following definition in its proper alphabeticalsequence-

"EnergyPurchase Agreement"means a contract between a licensed power producer and an electricity buyer for the supply of energy measured in megawatt hours, and also includes aPowerPurchase Agreement for the supply of power measured in megawatts, together with all related terms on pricing, delivery, obligations of the parties, and the durationofthe agreement.

Justification

Tointroducethenewdefinitionthatcurestheambiguityofwhetherapowerpurchase agreementisincludedinaenergypurchaseagreement.

• 2)THAT, the Bill be amended in the proposed new section 134A by deleting subsection (2).

Justification

The applicableconstitutional andfinancial principles arealready adequately addressed in existinglegislation.

3. THAT, the Bill be amended in the proposed new section 134A by deleting subsection (3).

Justification

To avoid duplication,legal conflict,and unintended disruptionofestablishedprocurement processesunderthePPPframework.

• THAT, the Bill be amended in the proposed new section 134 A by inserting the following new subsectionimmediately after subsection(7)—
• "(8) A generating entity who, immediately before the commencement of this Act, had entered into an energy purchase agreement shall, within six months of the commencement of this Act, ensure full compliance with the requirements of this section.

SIGNED:..

.....DATE.....

HON.DAVID GIKARIA, CBS, M.P. CHAIRPERSON,

DEPARTMENTALCOMMITTEEONENER

THE NATIONAL ASSEMBLY PAPERSLAID

DATE:

0 3 DEC 2025

TABLED

PKALE:

DAY.

LISTOFANEXURES

• 1.Adoption Schedule
• 2.Committee Minutes
• 3.Copy of Newspaper Advert
• 4.Submissions by Stakeholders

REPUBLICOFKENYA THENATIONALASSEMBLY

THIRTEENTHPARLIAMENT-FOURTHSESSION,2025

DIRECTORATEOFDEPARTMENTALCOMMITTEES

DEPARTMENTALCOMMITTEEONENERGY

ADOPTIONOFTHEREPORTONCONSIDERATIONOFTHEENERGY(AMENDMENT)BILL. (SENATEBILLNO.42OF2023)

We,\_the undersigned\_Honorable Members of the Departmental Committee on Energy today Juesday..,...Oml..Iecember..oas.... ...dohereby affixoursignatures tothisReport on consideration of the Energy (Amendment) Bill, (Senate Bill No. 42 of 2023) to affrm our approval and confirm their accuracy,validity,and authenticity.

| NO. | NAME | SIGNATURE | |-------|---------------------------------------------|-------------| | 1. | The Hon.David Gikaria,CBS,MP-Chairperson | | | 2. | TheHon.Lemanken Aramat,MP-Vice- Chairperson | | | 3. | The Hon.Samuel Gonzi Rai,M.P. | | | 4. | The Hon.Charles Gimose,M.P. | | | 5. | The Hon.Elisha Odhiambo,M.P. | (m | | 6. | TheHon.JuliusMusiliMawathe,M.P. | | | 7. | The Hon.Walter Owino, M.P. | | | 8. | The Hon. Tom Mboya Odege, M.P. | | | 9. | The Hon. Simon King'ara, M.P. | | | 10. | The Hon. George Omwera Aladwa, M.P. | | | 11. | The Hon. Victor Koech Kipngetich, M.P. | | | 12. | The Hon. Geoffrey Ekesa Mulanya, M.P. | | | 13. | The Hon. Cecilia Asinyen Ngitit, M.P. | | | 14. | The Hon.BarongoNolfason Obadiah,M.P. | | | 15. | The Hon. Siyad Amina Udgoon, MP | |

THENATIONALASSEMBLY THIRTEENTHPARLIAMENT-FOURTHSESSION,2025 DIRECTORATEOFDEPARTMENTALCOMMITTEES

MINUTESOF THE45THSITTINGOFTHEDEPARTMENTALCOMMITTEEON FIFTHFLOOR,BUNGETOWERAT10:00AM.

PRESENT.

• 1.The Hon.David Gikaria,CBS, MP-Chairperson

2. TheHon.Lemanken Aramat,MP-Vice-Chairperson 3. The Hon.Charles Gimose,MP 4. TheHon.Elisha Odhiambo,MP 5. The Hon.Walter Owino,MP 6. The Hon.Tom Mboya Odege, MP 7. TheHon.Julius Musili Mawathe,MP 8. The Hon. Simon Kingara, MP 10. The Hon.Victor Koech Kipngetich, MP

• 9.The Hon. Geoffrey Ekesa Mulanya, MP
• 11.TheHon.BarongoNolfasonObadiah,MP
• 12.TheHon.CeciliaAsinyenNgiti,MP

APOLOGY

• 1.The Hon.Samuel Gonzi Rai,MP

2. The Hon. George Omwera Aladwa, MP

• 3.The Hon.Siyad Amina Udgoon, MP

IN-ATTENDANCE: COMMITTEESECRETARIATE

• 1.Mr.Fredrick Otieno

ClerkAssistantI

2. Mr.SalimAthuman

Clerk AssistantII

3. Mr. Brian Njeru

Fiscal Analyst II

4. Ms. Brigita Mati

Senior Legal Counsel

5. Ms.RehemaKoech

Hansard Officer

6. Mr.Robert Langat

Research Officer III

7. Ms.Viviane Juma

InternOfficer

• 8.Ms. Mariana Angela

InternOfficer

AGENDA:

• 1.Prayers
• 2.Preliminaries/Introductions
• i. AdoptionoftheAgenda
• ii. Remarks by the Chairperson

4. Agenda:Consideration of the clause-by-clause amendments on the Energy (Amendment) Bill(SenateBillNo.42of2023)andtheAdoptionoftheReport 3. Confirmation of Minutes/Matters Arising.

• 5.Any other Business
• 6.Adjournment/Date of the next meeting

MIN.NO.NA/ENERGY/2025/195:PRELIMINARIES

TheChairpersoncalledthemeeting toorder ateighteenminutespasttenO'clockfollowedbya bytheHon.WalterOwino,MPand theHon.SimonKingara,MPrespectively.

MIN.NO.NA/ENERGY/2025/196:CONFIRMATI0NOFMINUTES

TheMinutes of the 43rd sitting held on the11th November,2025were confirmed as a true record of the proceedings having been proposed and seconded by the Hon. Walter Owino, M.P and the Hon. Obadiah Barongo, MP respectively.

2023)

The Committee considered and unanimously adopted the Report with the following observations recommendations:

COMMITTEEOBSERVATIONS

Having considered the Bill, the Committee made thefollowing observations:THAT;

• (EPAs) with an emphasis on transparency, accountability, prudent financial management, and publicparticipation;
• 2)TheBill aimsto ensure greater transparency and accountabilityin the procurement ofelectric energybyrequiring disclosure of beneficial ownership and adherence to the principles enshrinedinArticle201of theConstitutionofKenya.Itendeavorstoestablishastatutory mechanism for regulating the conduct of EPAs between generating entities and licensed purchasing entities,includingKenyaPower and Lighting Company.
• 3 Section 134A (1) refers only to Energy Purchase Agreements, yet sector practice shows that Kenya Power routinely enters into both Power Purchase Agreements (PPAs) and Energy PurchaseAgreements(EPAs).The Committeefurther observed that the twoinstruments are not identical:PPAs relate to the availability ofpower measured in megawatts(MW),while EPAs relate to the purchase of energy measured in megawatt hours (MWh).
• 4) The principles listed in the proposed Section 134A (2) are already fully provided for in the Constitution andexisting statutes.Article227of the Constitution sets out themandatory principles for public procurement of goods and services, including fairness, equity, transparency,competitiveness,and cost-effectiveness,which applytoall publicinfrastructure contracts, including energy and power purchase agreements. The Committee therefore found that restating these principles in Section 134A (2) is unnecessary and may create duplication. For thisreason,theCommitteerecommendsdeletionoftheproposedsubsection.
• 5) The proposed subsection (3) introduces procurement requirements that are already addressed under existing laws and policies governing the energy sector. The Committee further noted thatfeasibilitystudiesfornewpowercommitmentsareadequatelycoveredthroughtheLeast Cost Power Development Plan, which guides system expansion and determines actual need. It also noted that most power purchase arrangements are undertaken within the framework of thePublicPrivatePartnershipAct,whichprovides an established and efficientprocessfor procuring generation projects, particularly those that are site-specific such as geothermal, wind,solar, and small hydros.The Committee found that applying the PublicProcurement andAsset Disposal Actto suchprojectsmayconflictwith thePPPAct andcould undermine the effectiveness and timelines of energy procurement. The Committee concluded that the
• 6) Section 134A (4) (5) and (7) refers only to Energy Purchase Agreements, yet sector practice shows thatKenyaPowerroutinely entersintobothPowerPurchaseAgreements (PPAs) and Energy Purchase Agreements(EPAs).The Committee further observed that the two

instruments arenot identical:PPAsrelate to the availability of powermeasured inmegawatts (MW),whileEPAs relateto thepurchase ofenergymeasured in megawatt hours (MWh).

COMMITTEERECOMMENDATIONS

The Committee having reviewed the Energy (Amendment) Bill (Senate Bill No. 42 of 2023) recommends that theHouse approvestheBill with amendments asproposed below:

• 1)THAT,theBill be amendedbyinserting a newclause1A that amendssection 2of the Energy Act,Cap.314 as follows:

Section 2 of the Energy Act be amended by inserting the following definition in its proper alphabeticalsequence-

"EnergyPurchaseAgreement"means a contractbetween alicensed power producer and anelectricitybuyerfor thesupplyofenergymeasured inmegawatthours,and alsoincludes aPowerPurchaseAgreementfor thesupplyofpowermeasured inmegawatts,together with all related terms on pricing, delivery, obligations of the parties, and the duration of the agreement.

Justification

Tointroducethenew definition thatcures the ambiguity ofwhether a powerpurchase agreementisincludedinanenergypurchaseagreement.

• 2) THAT, the Bill be amended in the proposed new section 134A by deleting subsection (2).

Theapplicableconstitutionalandfinancialprinciplesarealreadyadequatelyaddressedin

• Justification existinglegislation.

3. THAT, the Bill be amended in the proposed new section 134A by deleting subsection (3). Justification To avoid duplication, legal conflict, and unintended disruption of established procurement processesunderthePPPframework.

• 4.THAT, the Bill be amended in the proposed new section 134 A by inserting the following new subsection immediately after subsection(7)—

"(8) A generating entity who, immediately before the commencement ofthis Act, had entered into anenergypurchase agreement shall,within six months ofthecommencement ofthis Act, ensurefull compliancewith therequirements of this section

MIN.NO.NA/ENERGY/2025/198.ANYOTHERBUSINESS

TheCommitteewasinformedthat:

• 1.Field Development Plan and Production sharing Contracts for Block T6 and T7in South Lokichar Basin in Turkana County was laid on the table of the House on Thursday,28th November2025.Subsequently,theSpeaker of theNationalAssemblyreferred it to the Departmental Committee on Energy.The Consideration of theField Development Plan and Production sharing Contracts for Block T6 and T7 in South Lokichar Basin in Turkana County will involve stakeholder engagement and presentation of report to the National Assembly on Tuesday,24th February 2026.

The Committee was taken through the proposed timelines for consideration of the Field DevelopmentPlanandProductionsharingContractsforBlockT6 andT7inSouthLokichar BasininTurkana County and subsequent activities.

2. The Committee was further informed of the planed post legislative dialogue on the Energy Act, Cap 314 scheduled for Thursday,4th December 2025 at FourPoints by Sheraton, Hurlinghamfrom8:0oam.Memberswere urged to attend and participate intheevent.

MIN.NO.NA/ENERGY/2025/199:ADJ0URNMENT

There being no other business, the meeting was adjourned at ten minutes to twelve O'clock.The next meetingtobeheldonnotice.

Signed..

(HON.DAVIDGIKARIA,CBS,M.P.CHAIRPERSON)