Practice area
Energy & Natural Resources
Power, mining, oil and gas project legal support.
Overview
Energy and natural resources law governs the exploration, development, production, and distribution of energy and the extraction of natural resources in Kenya. It is a sector of national strategic importance, contributing significantly to government revenue, foreign exchange earnings, and employment. The legal framework includes the Energy Act, 2019, the Mining Act, 2016, the Petroleum (Exploration and Production) Act (Cap 308), the Geothermal Act, the Energy and Petroleum Regulatory Authority (EPRA) regulations, and the Constitution's provisions on the management of natural resources and the sharing of benefits with affected communities.
This area covers power generation, transmission, and distribution. Advocates advise on the full range of power projects — thermal, hydro, geothermal, solar, wind, and biomass — including the negotiation of power purchase agreements (PPAs) with Kenya Power, the negotiation of engineering, procurement, and construction (EPC) contracts, and the structuring of project financing. Advocates handle the regulatory aspects of power projects, including generation licences from EPRA, environmental impact assessments, and land acquisition for project sites. The work also covers the negotiation of feed-in tariff arrangements and the evolving framework for auction-based procurement of renewable energy.
On the petroleum side, they advise on upstream, midstream, and downstream matters. Advocates handle the negotiation of production-sharing contracts (PSCs) with the national government, the acquisition of exploration licences, and the management of joint operating agreements between petroleum companies. Advocates advise on the regulatory framework for the export and import of petroleum products, the licensing of petrol stations and petroleum storage facilities, and the competition law aspects of petroleum distribution. Advocates also monitor the implementation of the Petroleum Act, 2019 and the management of petroleum revenues under the Sovereign Wealth Fund framework.
On the mining side, they advise on the acquisition of mining licences and permits under the Mining Act, 2016, the negotiation of mining contracts, and the management of community benefit sharing agreements (CBSAs) — a statutory requirement under the Act for large-scale mining operations. Advocates handle environmental compliance for mining operations, the management of mine closure obligations, and the resolution of disputes between mining companies, the national government, county governments, and affected communities.
Advocates also advise on the cross-cutting issues that affect energy and resource projects: land acquisition and compulsory acquisition under the Land Act, environmental compliance under EMCA, the management of community relations and the implementation of free, prior, and informed consent (FPIC) principles, the negotiation of local content requirements, and the structuring of community development agreements. Advocates handle disputes before the Energy and Petroleum Tribunal, the National Environment Tribunal, and the courts, and they represent clients in arbitration proceedings arising from energy and resource contracts.
For the growing green economy, they advise on carbon credit projects, the framework for carbon trading under the Climate Change Act, 2016 (as amended in 2023), and the legal aspects of climate finance and green bond issuance.
What’s typically covered
- Power purchase agreements and energy project development
- Licensing before the Energy and Petroleum Regulatory Authority (EPRA)
- Mining rights and licences under the Mining Act
- Community development and benefit-sharing agreements
- Environmental and social compliance for extractive projects
- Net metering and captive power arrangements
Typical scenarios
- A solar developer negotiating a power purchase agreement.
- A mining company applying for a prospecting licence and engaging the local community.
- A factory installing rooftop solar and connecting under net metering.
FAQs
Energy & Natural Resources: common questions
The Energy and Petroleum Regulatory Authority (EPRA) licenses and regulates electricity, renewable energy and petroleum activities under the Energy Act, 2019 and the Petroleum Act, 2019.
It depends on the capacity and whether you sell power. Small self-generation for own use may only need a permit or registration, while larger plants and sales to third parties require a licence. Check with an advocate before investing.
Yes. The Mining Act requires holders of mining licences to enter into a community development agreement with the community where they operate, and royalties are shared between national government, county government and the community.
A long-term contract under which a generator sells electricity to a buyer — often Kenya Power — at agreed tariffs. It allocates risks such as delays, curtailment and payment default, and is central to financing a power project.
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