The Natural Resources (Benefit Sharing) Bill, 2022

8 Nov 2022 domainSenate Bill No. 6 of 2022 Gazette: Supplement No. 177 of 2022
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Status Timeline

Proposed

Active now

Public Review

Pending

Debate

Pending

Executive

Pending

Final

Pending

1

New 60-40 Revenue Sharing Formula

All revenue collected from natural resource exploitation will be shared between the National Government (60%) and respective county governments (40%). At least 60% of the county's allocation must fund local community projects, with the remaining 40% utilized for the benefit of the entire county.

2

Mandatory Benefit Sharing Agreements

Affected entities engaged in natural resource exploitation must enter into a benefit-sharing agreement with the respective county government. These agreements must be approved by the county assembly and registered with the Benefit Sharing Authority.

3

Establishment of the Benefit Sharing Authority

The Bill establishes the Benefit Sharing Authority to coordinate agreements, review and determine royalty rates where not explicitly set by other laws, and monitor compliance with natural resource exploitation regulations.

4

Fines up to KSh 5 Million for Non-Compliance

Any person who fails to declare information or provides false statements commits an offense. Natural persons face fines up to KSh 2 million, imprisonment up to three years, or both. Corporate bodies face fines up to KSh 5 million and potential license cancellation.

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