Kenya's abundant natural resources have historically posed challenges in equitably distributing the benefits derived from their exploitation. The Natural Resources (Benefit Sharing) Bill 2022 aims to address this issue by establishing a framework for sharing these benefits among stakeholders.
The Bill applies to a wide range of resources, including sunlight, water, forests, wildlife, minerals, and petroleum. It proposes the creation of the Benefit Sharing Authority (BSA), responsible for coordinating benefit-sharing agreements, reviewing royalties, and advising on related policy and legislation.
The Kenya Revenue Authority will collect royalties and fees from entities exploiting natural resources. The revenue will be shared between the national government (60%) and the relevant county government (40%). At least 60% of the county's share must be allocated to local community projects.
Exploiters must enter into benefit-sharing agreements with county governments before exploiting resources. These agreements must be approved by county assemblies. County benefit-sharing committees and local community forums will participate in negotiations.
The Bill also provides a grace period for ongoing projects to comply with its provisions. It seeks to legitimize and support investors by introducing formal negotiation mechanisms and county assembly approval of agreements. This aims to prevent conflicts between indigenous communities and investors, as seen in projects like Tullow Oil and Lake Turkana Wind Power.
The Bill empowers local communities by involving them in resource exploitation and ensuring they receive benefits. They will participate directly through local community forums and indirectly through representatives on county benefit-sharing committees. Their input will influence decisions on royalties and benefit-sharing agreements.
The Bill aligns with existing laws governing mining, wildlife conservation, petroleum, and energy to ensure consistent revenue collection and management. It has been approved by the Senate and is currently under consideration by the National Assembly.