The Energy (amendment) Bill (senate Bill No. 42 Of 2023)

REPUBLICOFKENYA

PARLIAMENT

SENATE BILLS

(Bill No. 42 of 2023)

THE ENERGY (AMENDMENT) BILL, 2023

(A Bill published in the Kenya Gazette Supplement No. 162 of 1"t September, 2023 and passed by the Senate on 15th April, 2025.)

National Assembly

THE ENERGY (AMENDMENT) BILL,2023

A Bill for

AN ACT of Parliament to amend the Energy Act to make provision for energy purchase agreements; and for connected purposes.

ENACTEDby theParliament of Kenya,asfollows

Short title.

1. This Act may be cited as the Energy (Amendment) Act,2023.

Insertion of section134Ain ActNo.1of 2019

2. The Energy Act is hereby amended by inserting the following new sectionimmediatelyaftersection134—

Energy Purchase Agreements.

134A.(1) A generating entity may enter into an energy purchase agreement to sell electrical energy to a licensed entity specified in the Third Schedule.

• (2) An Energy purchase agreement shall comply with the principlesof publicfinance enshrined in Article201of the Constitution which include—

• (a) openness and accountability;

• (b) public participation in financial matters;

• (c)good governance toensure that publicfunds are used in a prudent and responsible way; and

• (d) sustainability.

• (3) The purchasing entity shall

• (a) prior to procurement of electrical power, conductafeasibilitystudytoidentifywhether thereis enough demandfor electricity purchase which cannot be met by the existing production;

• (b) ensure the process of procurement of electrical

Act No.33 of2015.

ActNo.17of2015.

Act No.31 of2016.

• thePublicProcurement andAssetDisposal Act;
• (c) ensure that priority is given to dispatchable generation with a sustainable base load at point of dispatch;
• (d) give priority to a generating entity generating electrical energy through renewable technology.
• (4)An energy purchase agreement referred to in subsection(1)shallonlybe enteredintowithagenerating entity which has disclosed and registered full beneficial ownership in accordance with the Companies Act.
• (5) A purchasing entity shall prepare and maintain a registerofgeneratingentitiesithasenteredintoenergy purchase agreements with andtheentity's beneficial ownership and publish the names of the same
• (a) on its website; and
• (b) in the annual audit report.
• (6) The register in subsection (5) shall be-
• (a) prepared within ninety days from the date of operation of this section; and
• (b) open for inspection by members of the public in accordance with section 5(1)(e)of the AccesstoInformationAct.
• (7) The Authority shall not approve an energy purchase agreementwhichfail tocomplywith this section.

I certify that this printed impression is a true copy of the Bill as passed by the Senate on 15th April, 2025.

EndorsedforpresentationtotheNationalAssemblyinaccordancewiththeprovisionsof standing order 161 of the SenateStanding Orders.

SpeakeroftheSenate