EPRA unveils seven draft regulations for petroleum sector oversight
EPRA Director-General Daniel Kiptoo said the proposed rules are aimed at strengthening local participation, improving cost management, and safeguarding the environment as Kenya prepares for commercial oil production.
Kenya has unveiled new draft regulations that will compel foreign oil and gas companies to work with local partners and give preference to Kenyan goods, services, and labour as part of efforts to ensure the country fully benefits from its petroleum resources.
The Energy and Petroleum Regulatory Authority (EPRA) said the proposed rules are aimed at strengthening local participation, improving cost management, and safeguarding the environment as Kenya prepares for commercial oil production.
The Petroleum (Local Content) Regulations, 2025, which are among seven draft frameworks set to be released on Friday, cover the entire petroleum value chain from exploration to transportation.
They set out requirements for licensing, insurance, land access, environmental protection, health and safety, and handling of equipment.
“These regulations are crucial in guiding petroleum exploration and ensuring the country avoids the pitfalls experienced in other oil-rich African nations like Sudan and Nigeria, where resource mismanagement has led to conflict. The government plans to ensure that Kenyans fully benefit from the country’s petroleum resources,” said EPRA Director-General Daniel Kiptoo.
Public participation forums are being held in Meru, Isiolo, Marsabit, Tharaka Nithi, Embu, Laikipia, and Samburu counties, where stakeholders are being taken through the objectives, penalties, and permit costs under the draft regulations.
A separate consultation workshop is also scheduled in Nairobi to allow industry players and community representatives to give feedback before the final rules are gazetted.
The draft regulations under review include the Petroleum (Upstream Petroleum Access to Land) Regulations, 2025, the Petroleum (Upstream Petroleum Management and Administration) Regulations, 2025, the Petroleum (Midstream Crude Oil and Natural Gas Pipeline and Storage Operations) Regulations, 2025, the Petroleum (Upstream and Midstream Environment, Health and Safety) Regulations, 2025, the Petroleum (Local Content) Regulations, 2025, the Petroleum (Upstream Petroleum Operations) Regulations, 2025, and the Petroleum (Upstream Petroleum Cost Management) Regulations, 2025.
Kiptoo explained that the proposed rules are anchored in the Petroleum Act, which governs contracting, exploration, production, and cessation of upstream activities.
“The Act also provides for the negotiation of production-sharing contracts between oil companies and the government through the Cabinet Secretary for Petroleum. EPRA operates under the Energy Act and regulates all aspects of the petroleum value chain, from exploration, production, and transportation to sale,” he said.
Kenya first struck oil in Turkana in 2012, transporting about 200,000 barrels for testing. However, commercial production has been delayed due to logistical and operational challenges.
To support the sector, the government has allocated Sh1.67 billion in the 2024/2025 budget for research, feasibility studies, and development of the Lokichar-Lamu crude oil pipeline and the South Lokichar oil field, which will transport crude oil to Mombasa for export.
The proposed Local Content rules require international operators, contractors, and subcontractors to prioritise the use of Kenyan goods and services and to hire local workers wherever possible. Companies will also be required to train Kenyans, build local skills, and establish research and development partnerships with institutions in the country.
“The regulations aim to promote the participation of Kenyans and their value creation in the petroleum sector. They provide a legal and operational framework to ensure that Kenyans and Kenyan businesses benefit meaningfully,” EPRA said.
Other proposals include stricter cost oversight in upstream operations, improved safety and technical standards for pipeline and storage facilities, and clearer procedures for land acquisition and community resettlement.
EPRA said the new rules are intended to balance investment attraction with responsible resource management.
