Energy Act

This Act may be cited as the Energy Act.

Contains the heading 'Section 2. Interpretation' followed by the fragment 'an electric supply line; or'.

Section 3 designates that the Act applies to various energy-related activities and states that licences or actions taken under the Act do not affect rights or obligations acquired under prior contracts or written law before commencement, unless the Act expressly provides otherwise.

The Authority has functions over generation, importation, exportation, transmission, distribution, supply and use of electrical energy, except licensing of nuclear facilities.

The Authority has the power to issue, renew, modify, suspend or revoke licences and permits for all undertakings and activities in the energy sector.

The Board consists of: a Chairperson appointed by the President; the Principal Secretaries responsible for Energy, Petroleum and National Treasury (or their representatives); one County Executive Committee member responsible for energy and petroleum nominated by the Council of County Governors; the Director-General; and five other members (not public officers) appointed by the Cabinet Secretary.

The Board must, with Cabinet Secretary approval, appoint a Director-General through a competitive recruitment process; the Director-General is the CEO, manages day-to-day affairs subject to the Board's directions, serves a three-year term (renewable once), is an ex officio member without voting rights.

The Board must regulate its own procedure and the procedure of any committee constituted under the Act.

The terms of office, vacancies and removal of Board members; the common seal; the financial year; annual estimates; books of accounts; records; audit and reports of the Authority are to be as provided in the Second Schedule.

The Authority may, in consultation with the Public Service Commission, appoint staff needed to perform its functions and may determine their terms and conditions of service.

The Authority must pay members of the Board remuneration, fees or allowances for expenses as it determines, on the advice of the Salaries and Remuneration Commission.

Members of the Board, officers, employees, agents and persons acting on lawful directions of the Authority are not personally liable for actions done bona fide in executing the Authority's functions, powers or duties.

The Authority remains liable to pay compensation or damages to any person for injury to the person, their property, or interests caused by exercising powers under the Act or by failure of works.

The Authority's funds include specified levies, licence fees, revenues and other monies; any monies collected by the Authority (including levies, fines and penalties) must be paid into the Consolidated Fund.

Section 21. Delegation of powers or functions to committees or agents Section 21(1) The Authority may, by resolution either generally or in any particular case delegate to any committee of the Authority or to any member, officer, employee,

Committees, members, officers, employees or agents have powers to enter and inspect premises, require and copy documents, take possession of evidence, require information, be accompanied or use equipment for inspections; unauthorized interference with seals or obstructing inspections are offences with specified penalties.

The Authority must decide matters within 60 days of a request, give written decisions and reasons served on parties (may be published), communicate decisions within 7 days, orders take effect on entry and must be complied with, and an appellant may appeal to the Tribunal if the Authority misses the 60‑day deadline.

A person aggrieved by a decision of the Authority may appeal to the Tribunal within thirty days of receipt; the Tribunal may hear a late appeal if satisfied there was sufficient cause for the delay.

Establishes the Energy and Petroleum Tribunal to hear and determine disputes and appeals under this Act or any other written law.

Section 26 establishes membership and selection procedures for the Tribunal.

Section 27 lists when a tribunal member's office becomes vacant, prescribes how a person may seek removal for the ground in subsection (1)(c), authorises the Cabinet Secretary to suspend and to appoint a tribunal, sets tribunal composition, and requires the tribunal to investigate and report; the Cabinet Secretary must act on the tribunal's recommendation within thirty days.

A person appointed as a member of the Tribunal must, before assuming duties, take and subscribe to the oath of allegiance to the office.

If a Tribunal member has any interest that could conflict with their functions, they must disclose it to the parties and must not participate in deliberations or decisions on the matter.

The Cabinet Secretary must appoint the secretary to the Tribunal; a person is eligible only if an advocate of the High Court of Kenya with at least seven years' standing; the Tribunal may appoint other necessary staff.

The terms of office, vacancy and removal of Tribunal members, the common seal, the financial year, annual estimates, books of accounts, records, audit and reports of the Tribunal are to be as provided in the Second Schedule.

The Chairperson must manage and arrange the Tribunal's business, determine times, places and procedures for hearings, and publish the Tribunal's rules of procedure in the Gazette.

The Chairperson must preside at all Tribunal sittings when present; if absent the Vice-Chairperson must preside. The Tribunal’s quorum is three members, including the Chairperson or the Vice-Chairperson.

The Tribunal may seek technical advice from persons with specialized knowledge, and those persons must disclose any interests they have or later acquire relating to the matter.

The Tribunal must pay its members remuneration and fees (consulting the Cabinet Secretary and on Salaries and Remuneration Commission advice), must pay allowances to technical advisers, and tribunal members serve part-time.

Section 36 sets out the Tribunal's jurisdiction: it can hear and determine energy and petroleum sector matters, has original civil and appellate jurisdiction in specified disputes and decisions, may refer matters back, can grant equitable reliefs, but its jurisdiction does not include trying criminal offences; it must decide matters referred to it expeditiously.

The Tribunal may review its own judgments and orders; a person aggrieved by a Tribunal decision may appeal to the High Court within thirty days.

Sets Tribunal procedures: it must meet when needed to exercise jurisdiction; decisions are by majority unless unanimous, with the Chairperson having a casting vote in a tie; proceedings are informal but must observe natural justice and evidence rules; the Tribunal regulates its own procedure except as prescribed in the Act.

Section 39 lists the Tribunal's funds (Parliamentary appropriations, interest from bank deposits, and grants approved by the Judicial Service Commission) and states that all expenditure incurred by the Tribunal in exercising its powers or performing its functions shall be paid out of those funds.

Where the Act provides for appeals from decisions of the Authority or any licensing authority, those appeals shall be made to the Tribunal in accordance with this Act.

Members, officers, employees, agents of the Tribunal, and persons acting on their directions are not personally liable for acts done bona fide in executing the Tribunal's functions, powers or duties.

Any reference that has been made to the court

Establishes the Rural Electrification and Renewable Energy Corporation and refers to it as "the Corporation"; lists corporate powers including suing and being sued, acquiring and disposing of property, borrowing and lending money, and performing other lawful acts to further the Act.

The Corporation is assigned multiple duties to plan, fund, promote, research, and support rural electrification and renewable energy activities, in collaboration with counties and other agencies.

Defines the Board membership and basic qualifications; appointing authorities include the President (Chairperson), Cabinet Secretary (three members), and Council of County Governors (four members); the Chief Executive Officer shall be Secretary to the Board; sets member qualifications.

The Board must appoint a Chief Executive Officer who manages the Corporation day-to-day and the CEO is an ex-officio (non-voting) Board member; appointment must follow a competitive recruitment process and the CEO must meet specified qualifications.

The Board's business is to be conducted as provided in the First Schedule, and the Board must regulate its own procedure and the procedure of any committee.

The terms of office, vacancies and removals of Board members, the common seal, the financial year, annual estimates, books of accounts, records, audit and reports of the Corporation are to be as provided in the Second Schedule.

The Corporation must, in consultation with the Public Service Commission, appoint the staff it requires for performing its functions, on terms set by the Board.

The Corporation must pay its members remuneration, fees or allowances as it determines, after consulting the Cabinet Secretary and on advice from the Salaries and Remuneration Commission.

Members of the Board and officers, employees or agents of the Corporation are protected from personal liability for acts done in good faith in executing the Corporation's functions, powers or duties.

The Corporation remains liable to pay compensation or damages to any person for injuries to persons, property or interests caused by the exercise of the Board's powers, other written law, or failure of works.

The Corporation's funds consist of specified sources including monies from the Rural Electrification Programme Fund, parliamentary appropriations, allocations from the consolidated energy fund for renewable energy, interest from bank deposits, and revenue from other sources including loans, grants, gifts or donations approved by the Cabinet Secretary.

Establishes the Nuclear Power and Energy Agency (the Agency) and grants it corporate capacities including suing and being sued, acquiring and disposing of property, and performing acts for furthering the Act and its functions.

The Agency's headquarters shall be in Nairobi, and the Agency may hold its sittings at any place in Kenya subject to other written law about meetings.

Section 56 lists objects and functions of the Agency, assigning the Agency responsibilities and powers relating to nuclear electricity programme implementation, research, policy proposals, collaboration, intellectual property and promotion of energy technologies.

The Agency has all powers necessary to perform its functions under the Act.

The Chairperson shall be appointed by the President.

A person shall be qualified for appointment as Chairperson if they hold a degree recognized in Kenya in engineering, physical sciences, law, finance, economics or energy and meet citizenship, experience, professional membership and Chapter Six integrity requirements.

The Board must manage, supervise and administer the Agency's assets in a way that best promotes the Agency's purpose.

The Board must appoint a Chief Executive Officer by competitive recruitment; the CEO manages the Agency daily (under Board directions), must meet stated qualifications, serves a three-year term and may be reappointed once for three years; the CEO is an ex officio Board member but cannot vote.

The Agency must conduct and regulate its business according to the First Schedule and, subject to that, must regulate its own procedure and the procedure of any committee.

The terms of office, vacancy and removal of Board members, the common seal, the financial year, annual estimates, books of accounts, records, audit and reports of the Agency are to be as provided in the Second Schedule.

The Board may establish committees and may co‑opt persons into its membership; co‑opted persons have no voting rights.

The Board may delegate, by resolution, powers or functions to committees or to members, officers, employees or agents of the Board.

The Agency may appoint staff, in consultation with the Public Service Commission, as it requires to discharge its functions.

The Chairperson, members and staff of the Agency must be paid remuneration, fees or allowances as determined by the Cabinet Secretary on recommendation of the Salaries and Remuneration Commission.

Members of the Board and Agency officers, employees or agents (and persons acting on the Agency's directions) are not personally liable for actions done bona fide in executing the Agency's functions, powers or duties.

The Act does not relieve the Agency of liability to pay compensation or damages to any person for injuries or damage caused by the exercise of Board powers or by failure of works.

Parliament may appropriate sums for the purposes of the Agency.

The Agency may invest its funds in authorized trust fund securities or place surplus monies on deposit, but only with the approval of the Cabinet Secretary and concurrence of the National Treasury.

Section 72 assigns ownership and control over discoveries, inventions and improvements involving the Agency, including authority to grant bonuses, share profits, apply for patents, and determine fees or royalties; it also lists categories of persons covered.

Establishes the Energy and Petroleum Regulatory Authority and gives it corporate powers (e.g. sue and be sued, deal in property, borrow and lend, perform acts for furtherance of the Act) and states it shall be independent and not subject to direction or control except as otherwise provided in the Act.

The Cabinet Secretary must (1) in consultation with relevant stakeholders develop and publish a national energy policy and (2) within three months after the end of each financial year prepare and publish a report on its implementation.

The Cabinet Secretary and other named actors must prepare and submit energy plans; the Cabinet Secretary will consolidate them into an integrated national energy plan reviewed every three years and prescribe regulations on plan content and timelines.

Monitoring implementation of National integrated energy plan.

The Government must facilitate affordable energy services to all persons in Kenya; the Cabinet Secretary or County Executive Committee member may provide works or funds where supply is necessary and commercial reticulation is inexpedient; the Cabinet Secretary must develop a strategy to connect all households to electricity by 2030.

Cabinet Secretary must create a conducive environment to promote energy infrastructure investments, including making and sharing guidelines; National and County Governments must facilitate land acquisition for energy infrastructure in accordance with the law.

All unexploited renewable energy resources under or in any land vest in the National Government, subject to existing rights held by other persons.

The Cabinet Secretary must (a) within twelve months of this Act coming into force start a countrywide survey and resource assessment of all renewable energy resources; (b) prepare a renewable energy resources inventory and resource map for each resource area and publish biennial updates in the Gazette; and (c) have regard to relevant data, information, maps, documents or reports when preparing the inventory and map.

The Cabinet Secretary must promote the development and use of renewable energy technologies (e.g., biomass, solar, wind, hydropower, biogas, municipal waste).

Establishes an inter-ministerial Renewable Energy Resource Advisory Committee, lists its membership, allows it to co-opt up to four additional members, sets out its functions, and permits it to advise county governments upon request.

All unextracted geothermal resources under or in any land belong to (vest in) the National Government.

No person may sink a well, tap, take, use or apply geothermal resources for industrial or commercial purposes unless granted authority or a licence under this Act.

Section grants authorities and conditions for searching geothermal resources, including compliance, non-transferability, duration, renewal, and Cabinet Secretary powers over conditions.

The Cabinet Secretary may grant geothermal resource licences on application, subject to consultation and conditions; applicants can appeal decisions to a Tribunal and then to the High Court with specified time limits; the High Court must decide appeals within 120 days and must provide reasons within 14 days when rejecting licences.

The licensee must obtain a mining licence before exploiting any by-product that is a mineral, and must inform the Cabinet Secretary within seven days if another natural resource is discovered during geothermal exploration and production.

The licensee must not transfer or assign the licence or any part thereof without the consent in writing of the Cabinet Secretary signified by endorsement thereon.

A licence may be forfeited if the licensee ceases work for six continuous months without the Cabinet Secretary's written consent, or if a breach is not remedied as required; the licensee must repair breaches capable of being remedied within a specified period or show cause if not repairable; forfeiture does not affect liabilities already incurred.

Section sets royalty rates for geothermal energy and prescribes how royalties are apportioned between county government (20%), local community (5%), and national revenue (75%); the Cabinet Secretary must determine apportionment between counties and may waive or reduce royalties for licensees.

A licensee whose licence has expired, been surrendered or forfeited may, within ninety days, apply to the Cabinet Secretary to enter the licensed land to remove installed plant, machinery, engines or tools; the Cabinet Secretary may require removal within a reasonable time and, if not removed, the items may be sold by auction at the licensee's cost; net sale proceeds are held until claimed by the licensee but may be used for repairs or to pay sale costs.

A licensee is responsible for loss, damage or injury to any person or property resulting from the licensee's works or operations, including where caused by negligence.

The Cabinet Secretary may require that a well be closed when specified conditions apply.

The Cabinet Secretary must, on recommendation of the Authority, make regulations setting prescribed levies and rentals for extracting geothermal resources for industrial or commercial purposes, and must levy those prescribed fees and rentals in accordance with subsection (1).

Section 90 creates offences for (1) drilling or extracting geothermal resources for commercial or industrial purposes in contravention of the Act, (2) interfering with survey pegs or beacons, and (3) interfering with valves, instruments, wells, geothermal plants or steam highways; each offence carries fines and, for some, imprisonment.

Establishes a renewable energy feed-in-tariff system to catalyse generation of electricity from renewable energy sources.

The Cabinet Secretary may, upon recommendation of the Authority, make regulations for administering and implementing the feed-in-tariff system.

The Cabinet Secretary, on recommendation of the Authority, may make regulations to implement this Part and may prescribe detailed matters (forms, fees, safety, licensing, exemptions, value of geothermal energy, guidelines and licensing of renewable sources).

Persons carrying out undertakings under the Act must comply with local content requirements and must prepare and submit an annual and long-term local content plan to the Authority for approval.

The Authority must monitor and enforce local content in all energy undertakings and works.

The Cabinet Secretary may make regulations (on the Authority's recommendation and subject to section 167); the Authority must publish proposed regulations at least thirty days before recommending them; the Authority may formulate regulations or receive proposals from any licensee or person.

Every licensee must furnish information to the licensing authority when, in the form and manner, and at the times required; the licensing authority may require that information in writing.

A person who makes a false or knowingly untrue statement to the Cabinet Secretary, the Authority, a committee, agent or an officer acting for the Authority, as required under this Act, commits an offence punishable by a fine of up to ten million shillings or imprisonment for up to five years, or both.

Names the Cabinet Secretary for the time being responsible for energy in relation to secrecy of information.

A person must not use or employ any energy, mode, material or apparatus for listed purposes unless it complies with Kenya Bureau of Standards specifications or, if none exist, an international standard approved by that Bureau.

A licensing authority must ensure no person is given undue preference or subjected to undue disadvantage when performing its functions and powers under the Act.

People operating under a licence must notify the licensing authority and the Authority in writing within forty eight hours of specified accidents or incidents occurring in Kenya or its maritime zones.

Penalties, fines, fees, expenses or other monies recoverable under this Act or a licence are a civil debt recoverable summarily.

Section 216 creates a Consolidated Energy Fund, lists its purposes and permitted funding sources, states it must be managed in accordance with the Public Finance Management Act, and says the Cabinet Secretary may prescribe regulations for managing the Fund.

Energy-sector institutions listed in the Third Schedule must establish offices necessary to make services easily accessible to Kenyans, in line with Article 6(3) of the Constitution.

An employer or principal is liable for an offence committed by an employee or agent unless the employer or principal proves it was committed against their express or standing directions.

Penalties under this Act are additional to other liabilities, including payment of compensation and (for a licensee) revocation of the licence.

The Director of Public Prosecutions must appoint, on the Authority's request, an officer of the Authority or an advocate of the High Court to act as a public prosecutor to prosecute offences under the Act.

A person who defaults or contravenes any provision of the Act, for which no penalty is stated, must on conviction pay a fine of at least one hundred thousand shillings.

The powers and functions of the National and County Governments are set out in the Fifth Schedule.

Public bodies are prohibited from charging levies on public energy infrastructure unless they have the Cabinet Secretary's written consent.

Section 100 lists matters that may be included in a licence or permit and requires the licensee to comply with environmental, health and safety laws, to be subject to liability under tort and contract law, and to pay necessary licence fees promptly.

Licensees must keep and display every licence or permit (or a certified copy) within their premises, except when lodged with the Authority for any of the purposes of this Act.

The Authority may revoke a licence or permit for specified grounds, may give a 14‑day notice to show cause (unless the licence says otherwise), must include specified content in the notice and must determine the matter within 30 days of the notice expiry.

If, after application and showing to the Authority that a licence or permit was lost, destroyed or defaced, and on payment of the prescribed fee, the Authority must issue a duplicate licence or permit to the licensee.

Section 104. Transfer of a licence or permit Section 104(1) A licensee shall not transfer or otherwise divest any rights, powers or obligations conferred or imposed upon the licensee by the licence or permit without the consent of the

The Register of licences and permits must contain specified particulars; any person may inspect it during official working hours upon payment of the prescribed fee, subject to subsection (3).

Allows an appeal against actions of the Authority refusing to renew or grant a licence or permit, or revoking a licence or permit.

Anyone intending to build an energy facility that uses coal must apply in writing to the Authority for a construction permit before starting construction, provide specified applicant and ownership details and supporting documents, and the Authority must grant the permit within forty five days if requirements are met or notify the applicant with reasons if refused.

The Authority may suspend or revoke a construction permit by notice in the Gazette if terms or conditions were not complied with; it must take precautions to ensure fairness and may notify the holder at least twenty-one days before intended revocation or suspension; it may reinstate a permit in writing if satisfied the reasons no longer exist.

If works have not commenced within twelve months of grant (or any extended period the Authority allows), the permit ceases to have effect.

If a coal energy facility is built without a permit, the Authority may give the owner or occupier twenty one days' written notice to obtain the required permits; if not obtained the Authority may stop construction and immediately decommission the works. If the owner/occupier fails to remove works the Authority shall decommission them at that person's cost. Building certain coal facilities without a permit is an offence punishable by a fine of not less than one million shillings.

Licensed operators of common user facilities must provide non-discriminatory open access to any licensee or person for use of the facility on payment of fair and reasonable charges as prescribed by regulations.

Licensed operators of common user facilities must use a contract form approved by the Authority that sets out the rights and responsibilities of the licensee and users.

The Cabinet Secretary may provide financing, procure, store, maintain and manage strategic stocks of coal for electricity generation (in whole or in part).

Persons producing energy from coal must follow environmental, health and safety laws; facility operators must immediately clean up pollution after incidents at their own expense; the Authority can have cleanup done and charge the operator if the operator fails or delays; coal transporters must ensure safe transport.

Section 115 lists specific offences related to production, transport, construction and licensing of coal energy facilities and sets fines and terms of imprisonment for those offences.

Regulation for use of coal for energy production, covering importation, landing, loading, shipping, transportation and storage of coal.

A licence or permit is required to produce energy from coal; electricity generation using coal must have a valid licence; transportation of coal for energy production by vehicle must have a valid vehicle permit; specified fines or imprisonment apply for contraventions.

Sets application, renewal, reasons for refusal/conditions, renewal effect and a penalty for contravening renewal duties regarding licences or permits administered by the Authority.

The section sets conditions and effects related to permits: persons must not use permitted works before specified conditions are satisfied (except to the extent allowed in an Authority notice), the Authority may revoke permits at any time and may give notices permitting limited use before all conditions are met, and licensees for partially executed works are deemed to have satisfied prescribed conditions.

A person may apply to amend a licence or permit; the Authority may amend and endorse the licence on payment of the prescribed fee; if the Authority refuses, it must give written reasons to the applicant.

When reviewing an application, consider the impact of the undertaking on the social, cultural or recreational life of the community.

An application for a licence must be accompanied by an environmental liability policy prescribed by the Cabinet Secretary.

A person who wishes to generate, export, import, transmit, distribute or retail electricity must apply for a licence to the Authority; but a person need not have authorization to generate electricity for own use up to one megawatt.

A person who carries out any electricity undertaking without a licence commits an offence and, on conviction, faces at least a one million shillings fine or at least one year imprisonment or both.

Sets procedures and notices for licence applications: applications must follow prescribed form; the Authority may invite applications; prospective applicants must place a 15‑day public notice; persons wishing to object must do so by letter within 30 days; and the Authority must inform applicants within 15 days whether an application is complete.

The Authority may hold public hearings on licence objections (with at least fifteen days' notice to applicant and objectors) and must announce its decision within thirty days after the hearing.

The Authority must process complete licence applications within sixty days; if it refuses, it must give reasons within seven days; an aggrieved party has a right of appeal to the Tribunal within thirty days.

Section 122 lists matters that may be included in a licence and imposes specific requirements on licensees and operators, including that the licensee must comply with environmental, health and safety laws and be subject to liability, and that an operator must inform the network operator of connected equipment that may affect the network.

Licensees are prohibited from purchasing or acquiring other suppliers of electrical energy except with the Authority's consent, which must not be unreasonably withheld; contravention can lead to revocation of the licence.

A licensee may not transfer licence rights, powers or obligations without the Authority's consent; the Authority must assess transferee competence and generally must not withhold consent unless public interest is likely to be prejudiced; transferees must undertake in writing to comply with licence conditions. Definitions of "transfer of licence" and "controlling interest" are included.

If a licensee fails to meet obligations the Authority must serve a written notice requiring compliance within 14 days (or a longer period not exceeding 60 days). If the licensee does not comply the Authority may appoint a statutory manager (at the licensee's risk and expense) or may revoke the licence; appointment of a manager is for up to 12 months and may be extended with court justification. Obstructing a statutory manager is an offence punishable by a fine not exceeding 100000 shillings for each day or part thereof.

The Authority may suspend or revoke a licence for specified reasons and must give the licensee thirty days' written notice to show cause; it must determine the matter within thirty days after the notice and, if revoked, act (with the Cabinet Secretary) to avoid undue interruption of supply.

If, on application, it is shown to the Authority that a licence has been lost, destroyed or defaced, the Authority must issue a duplicate licence.

The Authority must keep a public register of licences, approvals and related actions, may exclude prejudicial personal matters, make the register available for inspection for a prescribed fee, and supply certified copies or extracts on payment of a fee.

Licensees must have annual accounts audited and submit them to the Authority within three months after each financial year; licensees must provide requested operational information at their own cost; the Authority may treat multiple licences' operations as a single undertaking; certain exemptions are described in subsection (4).

The Authority can enter and inspect licensee premises, require documents and verification, authorized persons must show authorization on request, and refusing inspection is an offence punishable by a fine.

The Authority must regularly review the electricity market in consultation with the Cabinet Secretary to enhance competition, efficiency, reliability, security of supply and service quality; the first review must occur within three years of this Act coming into force and reviews must be no more than five years apart. The Cabinet Secretary must, on the Authority's recommendation, publish regulations for market operations.

A generation licence lets the licensee operate the named generating station or plant and connect it to distribution or transmission networks; generating entities must submit technical details to the Authority, coordinate with network operators, and follow system operator instructions; licensees and others must comply with applicable laws for development, building, operation and maintenance.

Applicants for a hydro-electric power generating licence must submit a detailed project proposal to the Authority; the Authority must satisfy itself (after consulting other agencies) that an adequate study of optimal dam locations has been made; proposed projects must meet prescribed dam design and safety standards; licensees must coordinate with multi-purpose river schemes when those schemes are in operation.

The Cabinet Secretary may direct that any generating plant be operated and maintained in extraordinary circumstances.

A transmission licensee must operate the transmission network stated in the licence and must connect its transmission network, if stated in the licence, to another transmission or distribution network within or outside Kenya; a transmission licence does not relieve the licensee or anyone else from complying with laws on development, building, operation or maintenance of a transmission grid.

Section 136 imposes duties on a licensee to build, maintain and operate an efficient transmission system, comply with system operator directions, provide non-discriminatory open access on payment of prescribed charges, supply prescribed information to the Authority, ensure sufficient capacity as practicable, maintain and protect the grid, and coordinate operation with connected networks.

The licensee must collect, analyze and maintain data, information and statistics about their undertaking so they can monitor and report to the Authority on reliability and quality of supply and quality of service, as prescribed in regulations.

The Authority may designate a system operator to carry out system operations; the system operator may levy fees from generators or licensees; licensees and operators must comply with the system operator's directions; failure to comply may attract a penalty not exceeding one hundred thousand shillings; the system operator must not engage in buying or selling electrical energy.

A distribution licence allows the licensee to plan, build, operate and maintain the distribution system for conveying electrical energy; the licensee and others must still comply with applicable laws; licences generally are not granted for locations under one quarter of a square kilometer except certain islands and exclusive economic zone areas.

Lists conditions a distribution licence must meet, including building and maintaining supply lines, operating an efficient distribution system, complying with system operator directions where applicable, payment of prescribed use-of-system charges and other fees, meeting minimum requirements, providing prescribed information to enable the Authority to approve fees, and ensuring adequate capacity as far as technically and economically practicable.

The licensee must collect, analyze and maintain data, information and statistics about their undertaking and monitor and report to the Authority on the reliability and quality of supply and quality of service, as prescribed in regulations.

Distribution licensees must plan and construct electric supply lines so persons in their area can receive electrical energy; applicants must apply to the retailer or licensee and may be required to meet notified terms and conditions; persons who initially paid for lines may be reimbursed proportionately, with claims made within six years; the Authority decides disputes about reimbursement.

Establishes the Rural Electrification Programme Fund and lists sources of its monies; the Cabinet Secretary may approve monies made available for the Programme.

Heading: Electricity sales levy

The Authority must set minimum financial and technical requirements for retail licences; persons with a retail licence may supply electricity and must perform duties specified by the Authority; when a new licensee takes over a consumer they assume the previous licensee's obligations and the previous contract ends.

The Authority may issue a retail licence to a licensee that specifies the area or areas for supply of electricity.

Retail licensees must use a contract form approved by the Authority that sets out the rights and responsibilities of the licensee and consumers.

A person who wishes to carry out electrical installation work must be licensed as an electrical contractor by the Authority; the person must either be a certified electrical worker or have a certified electrical worker in their employment.

People seeking certification as electrical workers must apply to the Authority in the prescribed form and manner; the Authority may grant a certificate (with or without conditions) or refuse it (giving reasons); an applicant whose application is rejected has a right of appeal to the Tribunal within thirty days.

People seeking to be licensed as electrical contractors must apply to the Authority in the prescribed form and manner; the Authority may grant the licence (with or without conditions) or refuse it (giving reasons); licences for electrical installation work are issued for three years and may be renewed; applicants whose applications are rejected have a right of appeal to the Tribunal within thirty days of receipt of the decision.

Section 151. Carrying out electrical installation work Section 151(1) It shall be the duty of any person planning, building, operating or maintaining a transmission or distribution system to ensure that such works are carried out only by

It is an offence for an unauthorised person to carry out electrical installation work, and also an offence for consumers or licensees/licensing authorities to permit unauthorised persons to do such work; each offence carries specified fines and/or imprisonment on conviction.

Licensees must ascertain metered quantities between them in the manner set out in their agreement; meters require type approval by the Kenya Bureau of Standards and prescribed accuracy classes and arrangement relative to interconnection points.

The retailer must supply and install meters at the consumer's premises and connect them to the supply system; the licensee may agree that a consumer's private meter determines the value of supply.

Licensee must seal meters with an approved seal showing the licensee's distinguishing brand; the licensee may install and seal protective cut-outs on the supply side at a consumer's premises; breaking or tampering with those seals without the licensee's authority is an offence and carries a fine up to fifty thousand shillings or imprisonment up to two years, and where another person committed the offence that person is liable.

If a consumer provides their own meter and the licensee changes the charging method, the licensee must either pay the reasonable expenses for a new meter or provide one; the consumer must keep their meters in proper working order at their own expense and the licensee may stop supply until defects are fixed; the licensee may access, remove, test, inspect and replace consumer-installed meters subject to section 160 at all reasonable times.

A consumer is entitled to install a check meter or meters in the consumer's premises to check the quantity of electrical energy supplied.

The licensee must not connect, disconnect, alter or adjust meters that determine supplied electrical energy without either the person's written consent or giving that person at least forty-eight hours' written notice (unless mutually arranged for adjustments); contravention is an offence with specified fines or imprisonment.

If a consumer's electricity meter is found defective the licensee may recalculate charges (subject to limits); special rules apply if the consumer interfered with the meter; disputes are referred to the Authority and certain actions are stayed until final determination.

The licensee may refuse or discontinue supply of electrical energy to a consumer for specified grounds (non-payment, unsafe or improper use, denial of access, demolition orders, legal prohibition, or default on connection loan), and may apply any deposit to unpaid charges and disconnect until payment including disconnection/reconnection expenses.

If the Government or its agencies fail to pay electricity bills, a licensee with outstanding uncollected billings attributable to the National Government, County Government or any Government agency must report those billings to the Cabinet Secretary for the National Treasury, who must then report them to Parliament for appropriation.

Consumers with on-site generators up to one megawatt may apply to enter a net‑metering agreement with the local distribution licensee or retailer; the distribution licensee or retailer must, upon application, make net‑metering service available to the electricity consumers it serves as prescribed in regulations.

Section 163. Contracts for bulk supply and network services Section 163(1) All contracts for the sale of electrical energy as well as provision of transmission and distribution network services, between and among licensees, and between

States there are rights and obligations of the retailer and the licensee.

Retail tariffs must follow principles prescribed by the Authority; the Authority reviews retail tariffs every three years; the Authority may suspend tariff increases up to five months; a licensee may require a consumer to pay a deposit; charges may be paid in advance subject to agreement.

Licensees must pay penalties for defaults in supplying electrical energy and must pay compensation for damage, financial loss or loss of life caused by failures, except where third-party interference, inevitable accident, or insubstantial force majeure applies; the Cabinet Secretary must make regulations within six months.

Gives the power to make regulations concerning electrical energy.

It is an offence to contravene licence conditions; to abstract, branch off, divert or knowingly use wrongfully abstracted electrical energy; to connect or disconnect conductors or apparatus to a licensee's supply without the licensee's consent; to alter a permanent installation without prior approval; to use devices or use energy outside contracted times where supply is unmetered; to use supplied energy for purposes other than those supplied for; or to supply supplied energy to others without consent. The licensee may also discontinue or refuse to resume supply to a consumer who commits such an offence, for a period the Authority may direct.

Section 169 declares specified acts concerning energy infrastructure and equipment (encroachment on land for energy projects; vandalism or attempted vandalism; stealing or handling energy equipment with knowledge or suspicion of theft and related dishonest retention or disposal; destruction or damage of energy infrastructure; malicious misinformation on energy with criminal intent or for gain) to be offences, provides for forfeiture of vessels used to convey vandalised equipment, and allows civil recovery for losses.

A person may develop energy infrastructure on, through, over or under any public, community or private land, subject to this Act and other written law.

The Cabinet Secretary must prescribe the forms and procedures for seeking and granting consent to survey land for energy infrastructure.

A relevant person or government agency responsible for management of the subject land may, in writing, authorize someone to enter and inspect land specified in section 171(1) and do what is reasonably necessary to assess suitability; if any damage results, the applicant must pay full just compensation under the relevant written law.

Section 173 requires a licensee giving notice to pay compensation to the legal representative where an owner cannot consent; grants occupiers or persons other than the owner an entitlement to compensation for loss or damage from energy infrastructure if claimed within three months; requires the applicant to give thirty days' notice by advertisement and radio when the owner cannot be traced; and provides that development shall not commence unless any payable compensation determined by the relevant government agency is deposited into a special compensation fund.

Any person who objects to acquisition of rights of way or wayleaves in their land may raise the objection in accordance with the relevant written law.

If there is a dispute about the amount of compensation or who is entitled to compensation under this Act, the determination must be made in accordance with the relevant written law.

After energy infrastructure has been laid, the licensee or a person authorized by the licensee may enter the land as necessary to operate, inspect, repair or remove the infrastructure; when infrastructure is removed the licensee must restore the land's surface and, if the licensee defaults, the owner may restore and recover the costs from the licensee.

A licensee must compensate the owner or occupier (and their agents, workmen or servants) for damage or loss caused by the exercise or use of powers under the Act, by irregularity, trespass or wrongful proceedings, or by loss, damage, breaking or defect in energy infrastructure.

Licenses may place energy infrastructure on or across public and government land; licensees must give written notice 30 days before works (except emergencies), must comply with county legislation, reinstate and secure works, and pay costs; county government may execute works at the licensee's expense if the licensee delays.

If land is reasonably required for constructing, modifying or operating energy infrastructure (or for incidental purposes), the section provides for compulsory acquisition of that land.

Licensees may require lopping or cutting of trees or hedges that obstruct energy infrastructure, after giving a seven days' notice and paying reasonable expenses; disputes can be referred to the Authority which may order works and compensation.

The Cabinet Secretary may, by order published in the Gazette, declare an area to be an energy resource area and must consult county government, local communities and other relevant agencies before doing so.

The implementing agency must conserve and manage all energy resources in an energy resource area and must take necessary measures to promote and develop them to achieve maximum economic utilization.

Owners or occupiers of land in an energy resource area must not, without the implementing agency's written approval and any imposed terms, carry out or permit acts that change or deplete energy resources so as to substantially reduce their economic viability.

Energy infrastructure and specified apparatus are not fixtures: they remain the property of the licensee and the licensee may remove them; certain rented or instalment‑paid items remain the licensee's until instalments are paid.

It is prohibited for a person, without reasonable cause, to hinder, obstruct or interfere with a licensee (or its authorized servants or agents) exercising a right of entry on land to install, repair, inspect or remove energy infrastructure; doing so is an offence.

At the end of activities under this Act, every person must remove infrastructure they brought to the land, rehabilitate the land and carry out any other prescribed actions; decommissioning activities must meet good practices prescribed by the Cabinet Secretary in regulations.

The Authority must coordinate development and implementation of a national energy efficiency and conservation programme.

Authority must designate factories, buildings and energy appliances by type, energy use or utilization method for energy efficiency and conservation; Authority may instruct owners to provide energy-use information; owners must comply within 30 days or face fines/imprisonment; Authority may grant extra time if owner needs assistance; owners must keep required records for at least five years or face penalties.

Owners of factories or buildings designated under section 188 must conserve energy and audit and analyze energy consumption in their buildings according to prescribed standards, criteria and procedures; failure is an offence punishable by a fine up to five hundred thousand shillings, or imprisonment up to two years, or both.

Power of Cabinet Secretary to enforce efficient use of energy and its conservation

The Authority may issue an energy savings certificate to a designated consumer with consumption below prescribed norms; a designated consumer with consumption above prescribed norms shall be entitled to purchase such a certificate.

The Cabinet Secretary has the power to specify the value of energy.

County Governments have the power to amend energy conservation building codes and to specify and notify energy efficiency and conservation building codes for building energy use, subject to approval by the Authority and rules made by the County Government.

A County Government must establish a fund to promote efficient use of energy and conservation within the county; the fund may receive grants and loans from the County Government, National Government or other entities and must be applied to expenses for implementing this Act; the County Government may make rules regarding administration.

County Government may appoint inspecting officers to ensure compliance with energy efficiency standards and label display; inspecting officers may inspect equipment, require equipment, take inventories, and record statements; inspecting officers must not remove equipment, appliances, books, or documents from premises.

County Government may issue written directions for energy efficiency and conservation, and persons, officers, authorities or designated consumers must comply.

A person aggrieved by an order made by an adjudicating officer, the National Government, the County Government or any other authority under this Act may prefer an appeal to the Tribunal.

The Cabinet Secretary may make regulations, on the Authority's recommendation and by notification in the Gazette, to carry out this Act, including rules on many specified energy-efficiency matters.

A County Government may, by notification, make rules to carry out this Act provided those rules are not inconsistent with any National Government rules and regulations.

The Authority must adopt and implement measures to conserve energy and improve energy efficiency across all consumer sectors.

The Authority may establish energy consumption benchmarks and, in association with relevant agencies or stakeholders, exercise powers such as inspections, information directives, monitoring, setting appliance standards and labels, prohibitions on non‑conforming appliances, enforcing building and vehicle codes, and developing educational materials.

If the Authority considers any person (including a public body) to be consuming energy above the Authority's benchmarks, that person must submit an accredited audit report and a remedial plan, and must implement the plan once approved; failure to submit or to implement is an offence.

Section 203 sets out accreditation roles (energy managers, energy auditors, energy service providers), requires certified persons to sit examinations and submit performance reviews as prescribed or requested by the Authority, and requires the Authority to maintain a public register of accredited persons.

Certain persons, including public bodies, must have energy audits carried out in their installations or premises; energy audits must be conducted by certified energy auditors who must submit a report to the Authority.

The Authority must prepare an annual report each financial year and submit it to the Cabinet Secretary; in preparing the report it must obtain services of accredited persons under the Act.

Section 224 repeals specified earlier energy laws and states transitional savings: actions and instruments under those laws are deemed done under this Act, existing statutory instruments and subsidiary legislation remain in force subject to consistency, revocations do not indemnify past liabilities, and existing tariffs continue until new tariffs are gazetted.

The provisions of the Fourth Schedule shall apply.