FIRST SCHEDULE
PROVISIONS AS TO THE CONDUCT OF BUSINESS AND AFFAIRS OF THE ENERGY AND PETROLEUM REGULATORY AUTHORITY , RURAL ELECTRIFICATION AND RENEWABLE ENERGY CORPORATION AND NUCLEAR POWER AND ENERGY AGENCY
1.Board to meet at least four times in a yearThe Board, as the case may be, shall meet as often as necessary for the transaction of business but shall meet not less than four times every financial year and not more than four months shall elapse between the date of one meeting and the next.2.The Chairperson to preside all meetings(1)The Chairperson shall preside at every meeting of the Board at which the Chairperson is present but in the absence of the Chairperson, the members of the Board present shall appoint a member from among their number to preside at that meeting.(2)The Chairperson or, in the absence of the Chairperson or member of the Board appointed by the Board, as the case may be, to act in the place of the Chairperson, may at any time call a special meeting upon a written request by a majority of the members of the Board.3.Notice of meetingUnless five members of the Board otherwise agree, at least seven days' written notice of every meeting of the Board shall be given to every member of the Board.4.Decision of the Board to be by majorityUnless a unanimous decision is reached, a decision on any matter before the Board shall be by a majority of votes of the members of the Board present, as the case may be, and in the case of an equality of votes, the Chairperson presiding shall have a casting vote.5.A member of the Board is entitled to have opinion recordedAny member of the Board present at a meeting of the Board or a Committee thereof, shall have the right to require his opinion to be recorded in the minutes if the Board or the Committee, as the case may be, passes a resolution, which in the opinion of that member is contrary to his advice or to law.6.Member of the Board to disclose interestA member of the Board who has a direct or indirect interest in a matter being considered or to be considered by the Board shall, as soon as possible after the relevant facts concerning the matter have come to his knowledge, disclose the nature of his interest to the Board and shall not be present during any deliberations on the matter.7.The Board to cause minutes to be recorded and keptThe Board shall cause the minutes of all proceedings of its meetings to be recorded and kept, and the minutes of each meeting shall be confirmed by theBoard at the next meeting of the Board and signed by the Chairperson or the member presiding at the meeting.(1)Subject to subsection (2), five members of the Board shall constitute a quorum for the conduct of business at any meeting of the Board.(2)When there is no quorum at or for the continuation of a meeting of the Board only because of the exclusion of a member of the Board under paragraph 6, the other members present may, if they deem it expedient so to do—(a)postpone the consideration of that matter until there is a quorum; or(b)proceed to consider and decide the matter as if there was quorum.SECOND SCHEDULE
PROVISIONS AS TO THE TERMS OF OFFICE, VACANCY OF AND REMOVAL FROM OFFICE, COMMON SEAL, FINANCIAL YEAR, ANNUAL ESTIMATES AND BOOKS OF ACCOUNTS, RECORDS, AUDIT AND REPORTS AND OTHERS OF ENERGY AND PETROLEUM REGULATORY AUTHORITY, ENERGY AND PETROLEUM TRIBUNAL, RURAL ELECTRIFICATION AND RENEWABLE ENERGY CORPORATION AND NUCLEAR POWER AND ENERGY AGENCY
1. Term of office
(1)A member of the Authority, Tribunal, Corporation or Agency as the case may be, shall hold office, in the case of—(a)the Chairperson and Vice-Chairperson, for a period of four years; and(b)a member, for a period of three years.(2)The Chairperson, Vice-Chairperson and members shall be eligible for re-appointment for one further term.(3)The Chairperson, Vice-Chairperson, and members shall be appointed at different times so that the respective expiry dates of their terms of office shall fall at different times.2. Gender balance and regional and ethnic balance
Appointments under this Act shall take into account the principle that the composition of the Authority, Tribunal, Corporation or Agency as the case may be taken as a whole, shall reflect gender balance as well as regional and ethnic diversity of the people of Kenya.3. Vacancy of office of Chairperson, vice-Chairperson, or members
(1)The office of the Chairperson, vice-Chairperson or member, as the case may be, shall become vacant if the holder—(b)by notice in writing addressed to the President or the Cabinet Secretary, as the case may be, resigns from office; and(c)is removed from office under any of the circumstances specified in paragraph 4 of this schedule.(2)The President or the Cabinet Secretary, as the case may be, shall notify every resignation, vacancy or termination in the Gazette within fourteen days.4. Removal of Chairperson, vice-Chairperson and members
A Chairperson, vice-Chairperson, or member (other than an ex officio member), may be removed from office on account of any of the following—(a)violation of the Constitution or any other law;(b)gross misconduct, whether in the performance of the member's or office holder's functions or otherwise;(c)physical or mental incapacity to perform the functions of office;(d)being absent from three consecutive meetings of the Authority, Tribunal or Board, as the case may be, without reasonable cause;(e)failure to disclose to the Authority, Tribunal or Board any interest in any contract or matter before the Authority, Tribunal or Board;(f)being convicted of a criminal offence;5. Removal from office
(1)The Director-General, the Chief Executive Officer, Executive Director, Managing Director, the Authority Secretary or Corporation Secretary as the case may be, may be removed from office by the appointing authority in accordance with the terms and conditions of service only for—(a)inability to perform the functions of the office of their respective offices arising out of physical or mental incapacity;(b)gross misconduct or misbehaviour;(c)incompetence or neglect of duty;(d)violation of the Constitution or any other law;(f)any other ground that would justify removal from office under the terms and conditions of service.(2)Before the Director General, the Chief Executive Officer or Executive Director, as the case may be, is removed under subparagraph (1), the Director-General, he or she shall be given—(a)sufficient notice of the allegations made against him or her; and(b)an opportunity to present his or her defence against the allegations.6. Financial year
The financial year of the Authority, Tribunal, Corporation or Agency shall be the period of twelve months ending on the thirtieth day of June in each year.7. Annual estimates
(1)At least three months before the commencement of each financial year, the Authority, Tribunal, Corporation or Agency, as the case may be, shall cause to be prepared estimates of the revenue and expenditure of the Authority, the Tribunal or the Agency for that year.(2)The annual estimates shall make provision for all the estimated expenditure of the Authority, the Tribunal, the Corporation or the Agency, as the case may be, for the financial year, and in particular but not limited to—(a)the payment of salaries or allowances and other expenses in respect of the staff of the Authority, the Tribunal or the Agency and the members; and(b)any other expenditure that may be necessary for the carrying out of their respective objects and functions under the Act.(3)The annual estimates shall be approved by the Authority, Tribunal or Agency as the case may be, before the commencement of the financial year to which they relate and shall be submitted to the Cabinet Secretary who, after approving it, shall forward it to the Cabinet Secretary of the National Treasury.(4)After the Cabinet Secretary's approval, the Authority, the Tribunal or the Agency, as the case may be, shall not increase the annual estimates without the consent of the Cabinet Secretary.8. Books of accounts, records, audit and reports
(1)The Authority, Tribunal, Corporation or Agency as the case may be, shall keep or cause to be kept proper books of accounts recording all the income and liabilities, expenditure assets, undertakings, funds, activities, contracts, transactions and any other business of the Authority, the Tribunal, the Authority and the Agency respectively.(2)The Authority, Tribunal, Corporation or Agency, as the case may be, shall ensure that all monies received are properly brought to account, all payments out of its funds are correctly made and properly authorized and that adequate control is maintained over its assets and liabilities under this Act.(3)Within a period of three months after the end of each financial year, the Authority, Tribunal, Corporation or Agency, as the case may be, shall prepare annual financial statements in accordance with the provisions of section 81 of the Public Financial Management Act (Cap. 412A), and submit them to the Auditor-General or to an auditor appointed under subparagraph (4), for audit.(4)The auditor referred to in subparagraph (3) shall be appointed by the Authority, Tribunal, Corporation or Agency, as the case may be, with the written approval of the Auditor-General.(5)The appointment of an auditor shall not be terminated by the Authority, Tribunal, Corporation or Agency, as the case may be, without the prior written consent of the Auditor-General.(6)The Auditor-General may give general or special directions to an auditor appointed under subparagraph (4) and the auditor shall comply with those directions.(7)An auditor appointed under subsection (4) shall report directly to the Auditor-General on any matter relating to the directions given under subparagraph (6).(8)Within a period of six months after the end of the financial year, the Auditor-General shall report on the examination and audit of the accounts of the Authority, Tribunal, Corporation or Agency, as the case may be, to the Authority, Tribunal, Corporation or Agency as the case may be, and to the Cabinet Secretary, and in the case of an auditor appointed under subparagraph (4), the auditor shall submit a copy of the report to the Auditor-General.(9)Nothing in this Act shall be construed to prohibit the Auditor-General from carrying out an inspection of the Authority, the Tribunal's, the Corporation's or the Agency's, as the case may be, accounts or records whenever it appears to him to be desirable and the Auditor-General shall carry out such inspection at least once every six months.(10)Notwithstanding anything in this Act, the Auditor- General may submit to the Cabinet Secretary a special report on any matter incidental to his or her powers under this Act, and the provisions of the Public Financial Management Act (Cap. 412A), on the same issue shall apply mutatis mutandis to any report made under this section.(11)The Cabinet Secretary shall lay the audit report before the National Assembly as soon as reasonably practicable after the report is submitted to him or her under this section.(12)The fee for any auditor, not being a public officer, shall be determined and paid by the Authority, Tribunal, Corporation or Agency, as the case may be.(13)The Authority, Tribunal, Corporation or Agency, as the case may be, shall prepare a report for each quarter not later than fifteen days after the end of each quarter and submit it to the Cabinet Secretary who shall, upon approving it, forward a copy to the Cabinet Secretary of the National Treasury.(14)The Authority, Tribunal, Corporation or Agency, as the case may be, shall prepare the financial statements in a form that complies with the relevant accounting standards prescribed and published by the Public Sector Accounting Standards Board from time to time.9. The common seal
(1)The common seal of the Authority, Tribunal, Corporation or Agency, as the case may be, shall be kept in such custody as the Authority, the Tribunal or the Board, as the case may be, may direct and shall not be used except on the order of the Authority, the Tribunal or the Board respectively.(2)The common seal of the Authority, Tribunal, Corporation or Agency, as the case may be, when affixed on a document and duly authenticated shall be judicially and officially noticed unless and until the contrary is proved any necessary order or authorization by the Authority, the Tribunal or the Board, as the case may be, under this section shall be presumed to have been duly given.(3)The affixing of the common seal of the Authority, Tribunal, Corporation or Agency, as the case may be, shall be authenticated by the signature of the Chairperson and the Chief Executive Officer and any document not required by law to be made under seal and all decisions of the Authority, the Tribunal or Board, as the case may be, may be authenticated by the signature of the Chairperson or the Chief Executive Officer:Provided that the Authority, the Tribunal or the Board, as the case may be, shall, in the absence of either the Chairperson or the Chief Executive Officer nominate one member to authenticate the seal on behalf of the Chairperson or the Chief Executive Officer.THIRD SCHEDULE
ENERGY SECTOR ENTITIES
1.Energy and Petroleum Regulatory Authority;2.Energy and Petroleum Tribunal;3.Rural Electrification and Renewable Energy Corporation;4.Nuclear Power and Energy Agency;5.Kenya Power and Lighting Company;6.Kenya Electricity Generating Company;7.Geothermal Development Company;8.Kenya Electricity Transmission Company;9.National Oil Corporation of Kenya;10.Kenya Pipeline Company; and11.Kenya Petroleum Refinery Limited.FOURTH SCHEDULE
TRANSITIONAL PROVISIONS
1. ENERGY AND PETROLEUM REGULATORY AUTHORITY
Re-establishment of the Energy Regulatory Commission(a)The Energy and Petroleum Regulatory Authority established under section 9 shall be the successor to the Energy Regulatory Commission established by the Energy Act (now repealed) and subject to this Act, all rights, duties, obligations, assets and liabilities of the Energy Regulatory Commission existing at the commencement of this Act shall be automatically and fully transferred to the Energy and Petroleum Regulatory Authority and any reference to the Energy Regulatory Commission in any contract or document shall, for all purposes, be deemed to be a reference to the Energy and Petroleum Regulatory Authority established under section 9.(b)The persons who at the commencement of this Act are the Chairperson and Commissioners of the Energy Regulatory Commission shall become Chairperson and members of the Board respectively, as the case may be, of the Authority for the remainder of their tenure in accordance with their appointment under the repealed Act.(c)For the greater certainty and subject to subparagraph (b), such persons shall have and may exercise and perform all the powers and functions of Chairperson or members of the Board, as the case may be, as if they were appointed under section 12.(d)Every person who at the commencement of this Act is an employee of the Energy Regulatory Commission, not then being under notice of dismissal or resignation shall, on that day and subject to this Act, become an employee of the Energy and Petroleum Regulatory Authority on the same terms and conditions.2. THE ENERGY AND PETROLEUM TRIBUNAL
(a)The Energy and Petroleum Tribunal established under section 25 shall be the successor to the Energy Tribunal established by the Energy Act (Repealed) and subject to this Act, all rights, duties, obligations, assets and liabilities of the Energy Tribunal existing at the commencement of this Act shall be automatically and fully transferred to the Energy and Petroleum Tribunal and any reference to the Energy Tribunal in any contract or document shall, for all purposes, be deemed to be a reference to the Energy and Petroleum Tribunal established under section 25.Preservation of judgements and rulings(b)The judgements, rulings or orders made by the Energy Tribunal established by the Energy Act (Repealed) are preserved.(c)The persons who at the commencement of this Act are the Chairperson and members of the Energy Tribunal shall become the Chairperson and members of the Energy and Petroleum Tribunal respectively, as the case may be, for the remainder of their tenure in accordance with their appointment under the repealed Act.(d)For greater certainty and subject to paragraph (c), such persons shall have and may exercise and perform all the powers and functions of Chairperson or members of the Energy and Petroleum Tribunal as the case may be, as if they were appointed under section 26.(e)Every person who at the commencement of this Act is an employee of the Energy Tribunal, not then being under notice of dismissal or resignation shall, on that day and subject to this Act, become an employee of the Energy and Petroleum Tribunal on the same terms and conditions.3. RURAL ELECTRIFICATION AND RENEWABLE ENERGY CORPORATION
Rural Electrification and Renewable Energy Corporation to be successor of Rural Electrification Authority(1)The Corporation shall be the successor to the Rural Electrification Authority established under section 66 of the Energy Act No. 12 of 2006 (Repealed) and subject to this Act, all rights, duties, obligations, assets and liabilities of the Rural Electrification Authority existing at the commencement of this Act shall be automatically and fully transferred to the Corporation and any reference to the Rural Electrification Authority in any contract or document shall, for all purposes, be deemed to be a reference to the Corporation established under section 43.(2)The persons who at the commencement of this Act are the Chairperson and Board members of the Rural Electrification Authority shall become Chairperson and members of the Board respectively, as the case may be, of the Corporation for the remainder of their tenure in accordance with their appointment under the repealed Act.(3)For greater certainty and subject to subsection (2), such persons shall have and may exercise and perform all the powers and functions of Chairperson or members of the Board, as the case may be, as if they were appointed under section 45.(4)Every person who at the commencement of this Act is an employee of the Rural Electrification Authority (not then being under notice of dismissal or resignation) shall, on that day and subject to this Act, become an employee of the Corporation on the same terms and conditions.4. THE NUCLEAR POWER AND ENERGY AGENCY
Nuclear Power and Energy Agency to be the successor to Kenya Nuclear Electricity Board(1)The Agency shall be the successor to the Kenya Nuclear Electricity Board under the Kenya Electricity Board Order, 2012 and subject to this Act, all rights, duties, obligations, assets and liabilities of the Kenya Nuclear Electricity Board at the commencement of this Act, shall be automatically and fully transferred to the Nuclear Power and Energy Agency and any reference to the Kenya Nuclear Electricity Board shall for all purposes, be deemed to be a reference to the Nuclear Power and Energy Agency established under section 54.(2)The persons who at the commencement of this Act are the Chairperson and Board Members of the Kenya Nuclear Electricity Board shall become Chairperson and Directors of the Board respectively, as the case may be, of the Agency for the remainder of their tenure in accordance with their appointment under the repealed Order.(3)For greater certainty and subject to subsection (2), such persons shall have and may exercise and perform all the powers and functions of Chairperson or Directors of the Board, as the case may be, as if they were appointed under section 58.(4)Every person who at the commencement of this Act is an employee of the Kenya Nuclear Electricity Board, not then being under notice of dismissal or resignation shall, on that day and subject to this Act, become an employee of the Nuclear Power, and Energy Agency.5. ONGOING PROJECTS
(1)The Cabinet Secretary shall continue to manage ongoing upstream coal activities including exploration and extraction and the Cabinet Secretary responsible for mining shall issue permits and licences for the activities under the relevant mining laws.(2)The activities referred to in paragraph (1) are as follows—(a)Mui Basin Coal Block "A" Concession;(b)Mui Basin Coal Block "B" Concession;(c)Mui Basin Coal Block "C" Concession;(d)Mui Basin Coal Block "D" Concession;(e)Mui Basin South Coal Block "19" Concession;(f)Mui Basin South Coal Block "20" Concession;(g)Exploratory Coal and Coal Bed Methane drilling services in Kitui, Kwale, Kilifi and Taita Taveta Counties.FIFTH SCHEDULE
DISTRIBUTION OF FUNCTIONS BETWEEN THE NATIONAL GOVERNMENT AND THE COUNTY GOVERNMENTS
A. FUNCTIONS OF THE NATIONAL GOVERNMENT
1. Policy Formulation and Integrated National Energy Planning
(a)Formulation of the National Energy Policy.(b)Preparation of Integrated National Energy Plan, incorporating fossil fuel, renewable energy and electricity master plans.(c)Provision of land and rights of way for energy infrastructure.2. Energy Regulation
(a)Regulation and licensing of importation, refining, exportation, transportation, storage and bulk sales of petroleum and their derivatives.(b)Regulation and licensing of production, conversion, distribution, supply, marketing and use of renewable energy.(c)Regulation and licensing of generation, importation, exportation, transmission, distribution, retail and use of electrical energy.(d)Approval of energy purchase agreements, network service contracts as well contracts for common user facilities.(e)Protection of consumer, investor and other stakeholder interests.(f)Preparation and enforcement of regulations and standards.(g)Formulation of National codes for energy efficiency and conservation in buildings.(h)Issuance of energy saving certificates to enhance energy efficiency and conservation.(i)Setting, review and adjustment of energy tariffs and tariff structures;(j)Resolution of complaints and disputes between parties over any matter in the energy and petroleum sector.(k)Prosecution of offences created under the Energy Act;(l)Certification of petroleum tanker drivers, electrical workers and contractors, solar system installation technicians and contractors.3. Operations and development
(a)Exploration and production of geothermal and other energy based natural resources.(b)Importation, exportation, and refining or processing of petroleum and its derivatives;(c)Transportation, storage and bulk sales of petroleum, coal and their derivatives.(d)Generation, transmission, distribution (including reticulation) and retail supply of electricity.(e)Collect and maintain energy data.(f)Implementation of the Rural Electrification Programme and management of the Rural Electrification Programme Fund.(g)Undertake feasibility studies and maintain data with a view to availing the same to developers of energy resources and infrastructure.(h)Provide technical and other capacity building support to County Governments.(i)Administration and management of the Consolidated Energy Fund and the National Energy Conservation Fund.(j)Protection of energy infrastructure including pipelines and storage depots, refineries, power plants, control centres, electric supply lines and substations.B. FUNCTIONS OF THE COUNTY GOVERNMENTS
1. County Energy Planning
(a)Preparation of County energy plans, incorporating petroleum, renewable energy and electricity master plans.(b)Physical planning relating to energy resource areas such as dams, solar and wind farms, municipal waste dumpsites, agricultural and animal waste, ocean energy, woodlots and plantations for production bio energy feedstock.(c)Provision of land and rights of way for energy infrastructure.(d)Facilitation of energy demand by planning for industrial parks and other energy consuming activities.(e)Preparation and implementation of disaster management plans.2. County Energy Regulation
(a)Regulation and licensing of retail petroleum service stations.(b)Regulation and licensing of County gas reticulation systems.(c)Regulation and licensing and supply of retail coal products for domestic use.(d)Regulation and licensing of designated parking for petroleum tankers.(e)Regulation and licensing of biomass production, transport and distribution.(f)Regulation and licensing of biogas systems.(g)Regulation and licensing of charcoal production, transportation and distribution.(h)Customize National codes for energy efficiency and conservation in buildings to local conditions.3. County operations and development
(a)Electricity and gas reticulation.(b)Provide and maintain adequate street lighting.(c)Provision of designated parking for petroleum tankers.(d)Collect and maintain energy data.(e)Implementation of County electrification projects.(f)Undertake feasibility studies and maintain data with a view to availing the same to developers of energy resources and infrastructure.(g)Establishment of energy centres for promotion of renewable energy technologies, energy efficiency and conservation.(h)Protection of energy infrastructure including oil and gas fields and pipelines, refineries, power plants, control centres, electric supply lines, substations and depot.(i)Undertake energy efficiency and conservation within the County.