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.

To contact the reporter on this story: David Herbling in Nairobi at dherbling@bloomberg.net

To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Sophie Mongalvy

©2018 Bloomberg L.P.