EPRA Unveils Sweeping Draft Regulations to Reform Kenya’s Oil and Gas Sector

EPRA Unveils Sweeping Draft Regulations to Reform Kenya’s Oil and Gas Sector
By Stella Ranji 

NAIROBI, August 29, 2025 

 The Energy and Petroleum Regulatory Authority (EPRA) has announced a comprehensive set of seven draft regulations targeting Kenya’s upstream and midstream petroleum sectors, in a bold move to boost investor confidence, ensure transparency, and enforce stringent safety and environmental standards.

The newly unveiled regulatory framework, currently under public review, is designed to overhaul key aspects of the oil and gas value chain — from exploration and production to storage and transportation — while embedding stronger local content requirements and cost management structures.

Among the proposed regulations are the Petroleum (Upstream Management and Administration) Regulations and the Petroleum (Upstream Operations) Regulations, which establish clear procedures for petroleum block allocation, permit issuance, and the conduct of exploration, appraisal, and production activities. These measures are expected to attract more responsible exploration while streamlining administrative processes.

In a bid to curb inefficiencies and protect public resources, EPRA has also introduced the Upstream Petroleum Costs Management Regulation, aimed at ensuring fair and prudent cost recovery practices among operators. The framework will enable government oversight of capital expenditure and operational costs, addressing long-standing concerns about transparency in cost reporting.
Crucially, the draft Local Content Regulation seeks to anchor greater Kenyan participation in the petroleum sector. It mandates foreign firms to partner with local companies, invest in training Kenyan staff, and collaborate with local research institutions through multi-year R&D plans — a significant step toward building indigenous technical capacity and fostering job creation.

On the midstream side, the Pipeline and Storage Operations Regulation introduces stringent safety and technical standards for the transportation and storage of crude oil and natural gas. This includes oversight of pipeline construction, operational protocols, and emergency response mechanisms.
Complementing all these is the cross-cutting Draft Petroleum (Upstream and Midstream Environment, Health and Safety) Regulations, 2025, which aim to strengthen Kenya’s ability to manage environmental and operational risks. The regulation enforces rigorous environmental assessments, health safeguards, and contingency planning across all petroleum-related activities.

“The goal is to create a well-regulated, competitive, and environmentally responsible oil and gas sector,” said EPRA Director General Daniel Kiptoo during the announcement. “These draft regulations have been designed with input from key stakeholders and international best practices to position Kenya as a leading energy hub in the region.”

The regulatory overhaul comes at a critical time as Kenya eyes commercial-scale oil production following years of exploratory work in the Turkana Basin and other promising blocks. Stakeholders are expected to submit feedback on the drafts in the coming weeks, with EPRA targeting implementation in early 2026.

Industry analysts view the reforms as a positive step toward unlocking Kenya’s petroleum potential, ensuring benefits are equitably shared among investors, government, and local communities, while protecting the environment for future generations.

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