Kenyan Parliament Approves Oil Law Setting Out Revenue Sharing
(Bloomberg) -- Kenyan lawmakers approved a new law that sets out how revenue from future oil production will be shared.
A majority of members of parliament approved the Petroleum Bill on Tuesday, majority leader Aden Duale said in a mobile-phone text message. The bill stipulates that 75 percent of income from crude production be handed to the national government, with 20 percent to county administrations and 5 percent to communities in locations where the oil is sourced.
Kenya expects to start producing oil commercially in 2021, almost a decade after Tullow Oil Plc discovered 1 billion barrels of crude in the country’s northern Turkana region. Last week, the country began shipping the fuel by truck from a storage facility at Lokichar to the port of Mombasa.
The legislation must now be approved by the Senate, before being forwarded to President Uhuru Kenyatta for assent.
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