Coast Residents Want Law on Natural Resource Revenue-Sharing Revised

By Mbungu Harrison

Email, thecoastnewspaper@gmail.com

Residents and civil society groups from four coastal counties are calling for urgent amendments to Kenya’s revenue-sharing law on natural resource extraction, citing inequality in the current allocation formula that leaves local communities with a meager 5 percent of shared revenues.

Under the existing framework, the national government retains 75 percent of revenues from petroleum operations, county governments receive 20 percent, while only 5 percent is allocated to local communities.

The law, enacted during former President Uhuru Kenyatta’s administration through the Petroleum Act, has long drawn criticism from resource-rich regions who argue that the distribution is unjust-especially for communities directly impacted by oil and gas exploration activities.

The concerns were raised during a public consultative workshop ongoing in Mombasa, convened by the Energy and Petroleum Regulatory Authority (EPRA) to gather stakeholder input on the newly drafted 2025 Petroleum Upstream and Midstream Regulations.

Several speakers at the forum criticized the current revenue-sharing structure, insisting it must be revised to reflect the needs and sacrifices of affected communities.

“We need to have a revenue-sharing formula that favors the local community, so that people can get a fair share of the revenue,” said Martin Tairo, Chair of the Energy Caucus representing all 47 counties.

He further emphasized that energy functions should now be devolved, as county governments are best placed to respond to grassroots issues.Taita Taveta is also affected by the law, since some of the mining happens within the county and leaves residents with nothing to smile at.

Tairo cited the example of Taita Taveta County, which often incurs high costs responding to highway accidents and energy-related emergencies along the Mombasa-Nairobi corridor, yet sees little benefit from the revenues generated in the region.

“When an incident happens like accidents or fires related to the energy sector it’s Taita Taveta County that bears the brunt of the expenditure. Meanwhile, the revenue share is too little. We need a way to strike a balance,” Tairu said.

The Mombasa forum brought together stakeholders from Mombasa, Kilifi, Kwale, and Taita Taveta counties. However, representatives from Lamu and Tana River counties were notably absent. EPRA has since confirmed that additional meetings will be held in those counties to ensure inclusive public engagement.

Other residents echoed these concerns. Kepha Odongo, a participant from Kilifi, called for a complete overhaul of the current law, insisting that the largest share of resource revenue should go to the communities most affected by extraction activities.

“If there’s a way, we should ensure that community revenue is increased, because 5 percent is too little,” said Odongo.

His sentiments were supported by Joice Mwamburi, who stressed the importance of public participation before enacting laws that significantly impact local populations.

Taita Taveta is endowed with a wide range of valuable gemstones and industrial minerals. Key finds include tsavorite, ruby, sapphire, tourmaline, garnets, peridot, iolite, spinel, as well as iron ore, manganese, copper, marble, magnesite, asbestos, graphite, kaolin clay, mica, and building stones.

Artisanal and small-scale mining (ASM) drives the local economy, accounting for approximately 60% of annual gemstone production in the county. Since 2013, gemstone exports have contributed around USD 30 million (about Ksh 3 billion)though informal sales likely increase that figure.

A 2025 audit found over 150 mining companies operating without licenses in Taita Taveta—only 3 of 161 sites had proper permits, pointing to significant revenue and community development losses

In remarks delivered on his behalf by Engineer Edward Kinyua, EPRA Director General Daniel Kiptoo Bargoria reaffirmed the authority’s commitment to transparency, equity, and community involvement in shaping the petroleum sector’s future.

“These regulations seek to ensure fair business practices, uphold safety and quality standards, promote sustainable environmental and social governance, and enable data-driven policymaking,” said Kiptoo.

He added that the updated regulatory framework aims to foster responsible resource management, attract investment, and safeguard the rights and well-being of both local communities and the environment.

A vehicle fueling at a petrol station. (Photo/ Courtesy)

As Kenya moves forward in harnessing its petroleum resources, coastal residents are making it clear: communities closest to the source deserve more than just 5 percent they want a fairer deal that recognizes their contributions and sacrifices.

The event marked the beginning of a nationwide series of stakeholder consultations on seven key draft regulations, covering areas such as Upstream Petroleum Management and Operations, Local Content, Cost Management, Environmental and Safety Standards, Land Access, and Midstream Crude Oil and Natural Gas Pipeline and Storage Operations.