Bill seeking to benefit Kenyans from natural resources ready

Oil and gas companies will now be required to state how local communities will benefit from the proceeds of mining activities, before they are licensed, if a proposed bill becomes law.

Communities in mineral-rich areas are set to benefit from new proposals that impose strict requirements on mineral operators while giving locals a greater say over their resources.

The Local Content Bill 2016 promises to give local communities more control over ownership, control and financing of resources such as oil and gas among other minerals.

“An operator shall, before applying for, or bidding for a licence, permit or interest and before engaging in any extractive activity, prepare and submit to the committee a local content plan with respect to the extractive activity in the prescribed form,” reads the draft Bill sponsored by Baringo Senator Gideon Moi.

Speaking during a public debate on the Local Content Bill 2016 at Strathmore University in Nairobi, Moi says once passed into law, international mining companies would be required to commit to a skills and technology transfer agreement with local firms and individuals.

This means that one will not be allowed to set up shop without clear terms on how his activities will impact land owners and the original owners of the resources, who have in the past been kept on the sidelines of economic development while large firms prosper from mineral proceeds.

It also means that communities will no longer be shortchanged by large firms that earn huge profits, while ignoring the welfare of their hosts and other key factors such as the environment.

“The bill will also ensure the local oil and gas industry is protected so it can compete fairly with multinationals,” Moi said.

Moi, who’s also the chairman of the Senate Standing Committee on Energy, has noted that the move will ensure more Kenyans are employable by acquiring the necessary skills.

The Bill principally seeks to promote the maximization of value-addition and the creation of employment opportunities in the extractive industry value chain through the use of local expertise, goods, services, businesses and financing and their retention in the country.

Last week, British company Tullow Oil announced it will begin exportation in June 2017 after making good progress on the Early Oil Pilot Scheme.

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