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LegislationGazette notice

Gazette Notice No. 9275 of 2025

The Cabinet Secretary makes the Petroleum (Local Content) Regulations, 2025, governing local participation in the petroleum industry.

Official PDF · 3.0 MB

Whole issue, from Kenya Law. This notice starts on printed page 4287.

AI-extractedAgreement between models, not verified accuracy.

Items 3

  1. Legislation notice 1

    Link
    Issuing authority
    Cabinet Secretary
    Body
    Authority
    Regulations title
    Petroleum (Local Content) Regulations, 2025
    Application
    These Regulations shall apply to the Petroleum Industry.
  2. Legislation notice 2

    Link
    Body
    Authority (Reviews performance reports and guidelines, undertakes public education, monitors compliance, investigates and handles complaints.)
    Court
    Tribunal (Hears appeals against the Authority’s response to a complaint.)
    Regulation 31 2 c
    indicate the number of employees who have ceased employment and the reason thereof;
    Regulation 31 2 d
    indicate the training, industrial and technology transfer availed to the employees;
    Regulation 31 2 e
    indicate the actual procurement of goods, works and services; and
    Regulation 31 2 f
    any other information the Authority may require.
    Regulation 32
    Upon submission of the Local Content performance report, the Authority shall review the performance report compliance with the annual Local Content plan, these Regulations and the Act.
    Regulation 33
    The Authority shall ensure that public education and sensitization activities are undertaken to educate the public and industry stakeholders about the Local content policies strategies to enhance their implementation.
    Regulation 34 1
    A contractor, licensee, or permit holder carrying out Petroleum Operations shall; –
    Regulation 34 1 a
    communicate Local content policies, procedures and obligations set out in these Regulations to all its agents and sub-contractors; and
    Regulation 34 1 b
    monitor and ensure compliance with local content policies, procedures and obligations set out in these Regulations.
    Regulation 34 2
    Notwithstanding sub-regulation (1), a contractor, licensee, or permit holder carrying out Petroleum Operations shall make available the local content policies, procedures and obligations on their respective websites.
    Regulation 35 1
    The Authority shall review guidelines and procedures for the effective implementation of these Regulations.
    Regulation 35 2
    Without limiting sub-regulation (1), the Authority shall, in consultation with relevant institutions, review guidelines for compliance by a contractor, licensee, or permit holder carrying out Petroleum Operations in respect of the following: -
    Regulation 35 2 a
    requirements and targets for the growth of research and development of the petroleum industry in Kenya;
    Regulation 35 2 b
    minimum standards, facilities, personnel and technology for training in the petroleum industry in Kenya;
    Regulation 35 2 c
    investment in or setting up a facility, factory, production unit or other operation in the country to carry out any production or manufacturing or to provide any petroleum related service otherwise imported into the country; and
    Regulation 35 2 d
    any other guidelines as may be determined by the Authority from time to time, generally for the implementation of these Regulations.
    Regulation 36
    The Authority shall monitor, inspect and verify the activities of each Contractor, licensee, or permit holder to ensure compliance with these Regulations.
    Regulation 37 1
    The Authority may for the purposes of enforcing these Regulations initiate an investigation into an activity of contractor, licensee, or permit holder carrying out Petroleum Operations.
    Regulation 37 2
    Without limiting sub-regulation (1), the Authority may launch investigations to ensure that: -
    Regulation 37 2 a
    the Local Entity principal is not diluted by the operation of a Front; or
    Regulation 37 2 b
    Bid Rigging and Cartelization are avoided in the procurement process.
    Regulation 38
    A person who contravenes provision of these Regulations shall be liable to the penalties provided for, under section 124 of the Act.
    Regulation 39 1
    Subject to any other offence or penalty specifically prescribed under the Act , a person who—
    Regulation 39 1 a
    fails to comply with any direction given under these Regulations;
    Regulation 39 1 b
    fails to allow inspection authorised under these Regulations; or
    Regulation 39 1 c
    fails to make a submission, notification or report required by these Regulations;
    Regulation 39 penalty
    commits an offence and is liable on conviction to a fine not exceeding Kenya shillings one (1) million or imprisonment of not more than six (6) months or both.
    Regulation 40 1
    A contractor, licensee, or permit holder dissatisfied with a decision of the Authority in respect of any matter provided for under these regulations may make a complaint to the Authority in writing.
    Regulation 40 2
    The Authority shall acknowledge the receipt of the complaint in writing within five (5) days and attend to the complaint within thirty (30) days.
    Regulation 40 3
    Where a contractor, licensee, or permit holder is not satisfied with the Authority’s response to the complaint, the contractor, licensee, or permit holder may appeal to the Tribunal within thirty (30) days of the receipt of the Authority’s response to the complaint.
    Regulation 41
    A contractor, licensee, or permit holder engaged in Petroleum Operations shall comply with these Regulations three (3) months after publication in the Kenya gazette.
  3. Legislation notice 3

    Link
    Type
    Legislation notice

Schedule 86 rows

FIRST SCHEDULE — Part 1 — UPSTREAM
ItemStart5 Years10 Years
1. Goods, Works and Services10%As per Part 2As per Part 2
2. Employment & training
(a) Management staff30%75%100%
(b) Core Technical Staff10%40%55%
(c) Other staff80%100%100%
FIRST SCHEDULE — Part 1 — MIDSTREAM
ItemStart5 Years10 Years
(d) Management staff30%75%100%
(e) Core Technical Staff10%40%55%
(f) Other staff80%100%100%
FIRST SCHEDULE — Part 1 — DOWNSTREAM
ItemStart5 Years10 Years
(g) Management staff90%100%100%
(h) Core Technical Staff90%100%100%
(i) Other staff100%100%100%
Part 2- Specific Levels to Be Achieved for Goods, Works and Services (Onshore) — 1. Front End Engineering Design (FEED), Detailed Engineering and Other Engineering Services
DescriptionStart5 Years10 YearsMeasuring Unit
1FEED and detailed engineering on onshore facilities15%30%50%Man-Hour
2. Fabrication and Construction
DescriptionStart5 Years10 YearsMeasuring Unit
2.1: Terminal or oil movement systems0%10%20%Number
2.2: Drilling modules or packages30%50%70%Number
2.3: Accommodation module60%70%100%Number
2.4: Pipeline Systems10%40%80%Linear Metres
2.5:Utilities module10%40%80%Number of packages
3. Materials
DescriptionStart5 Years10 YearsMeasuring Unit
3.1: Steel plates, flat sheets, sections40%80%100%Tonnage
3.2: Steel pipes40%80%100%Tonnage
3.3: Low voltage cables60%80%90%Length
3.4: High voltage cables60%80%90%Length
3.5: Valves and pumps15%35%55%Number
3.6: Drilling mud-barite bentonite30%50%80%Tonnage
3.7: Cement60%80%90%Tonnage
3.8: Heat exchangers and other piping accessories10%20%40%Number
3.9: Steel ropes and other mooring accessories30%60%80%Tonnage
3.10: Protective paints10%50%75%Litres
3.11: Glass reinforced epoxy (GRE) pipes10%30%60%Tonnage
4. Well Drilling Services
DescriptionStart5 Years10 YearsMeasuring Unit
4.1: Reservoir services10%20%40%Spend
4.2: Well completion services (permanent gauges & intelligent wells)10%20%40%Spend
4.3:Wirelines services (electric open holes, electric closed hole, slickline)10%25%50%Man-Hour
4.4: Logging While Drilling (LWD) (direction and inclination or Gamma ray)10%25%55%Man-Hour
4.5: Production or drilling service10%30%60%Man-Hour
4.6: Seismic data acquisition services10%40%70%Length
4.7: Well overhauling or stimulation services10%30%60%Man-Hour
4.8: Wellhead services10%30%60%Man-Hour
4.9: Directional surveying services10%20%50%Man-Hour
4.10: Cutting disposal services40%60%80%Man-Hour
4.11: Recutting inspection services20%45%70%Man-Hour
4.12: Cased hole logging services (gyro, perforation, gauges, gyro PLT performance, PLT gauges)20%50%80%Man-Hour
4.13: Well watch services10%30%50%Man-Hour
4.14: Cement services20%50%70%Man-Hour
4.15: Coiled tubing services20%35%70%Man-Hour
4.16: Mud-Pumping services10%40%70%Man-Hour
4.17: Fluid or bottom hole sampling services20%50%60%Man-Hour
4.18: OCTS services (cleaning hard banding, recutting, rethreading, storage)10%40%70%Man-Hour
4.19: Well crisis management services10%15%40%Man-Hour
4.20: Petrophysical interpretation services15%40%60%Volume/ Man-Hour
4.21: Extended well test or early production services10%10%20%Man-Hour
4.22: Rental of drill-pipe10%50%65%Man-Hour
5. Research and Development Relating to In-Country Services
DescriptionStart5 Years10 YearsMeasuring Unit
5.1: Engineering studies-reservoir, facilities, drilling etc.10%20%40%Spend
5.2: Geological and geophysical services10%25%40%Spend
5.3: Safety and environmental studies20%50%70%Spend
5.4: Local materials substitution studies20%40%70%Spend
6. Exploration, Subsurface, Petroleum Engineering & Seismic Services
DescriptionStart5 Years10 YearsMeasuring Unit
6.1: Onshore seismic data acquisition services10%30%40%Spend
6.2: Seismic data processing services30%40%50%Spend
6.3: Geophysical interpretation services10%30%70%Spend
6.4: Geological evaluation services (organic geochemistry, petrology, diagenesis, Geostratigraphy, fluid characterization, PVT, core analysis, flooding) services10%30%60%Spend
6.5: Mud logging services10%20%50%Spend
6.6: Coring services10%20%30%Spend
6.7: Well testing services10%30%60%Spend
6.8: Drilling rigs (land)10%40%50%Man-Hour
6.9: Snubbing services10%30%60%Spend
7. Supply and Disposal Services
DescriptionStart5 Years10 YearsMeasuring Unit
7.1: Disposal, distribution and waste transport services80%90%100%Spend
7.2: Rental of Cranes and Special Vehicles30%40%50%Spend
7.3: Freight forwarding, logistic management services80%90%100%Spend
7.4: Supply base, warehouse, storage services80%90%100%Spend
7.5: Truck, package product, transportation services80%90%100%Spend
8. Health, Safety and Environment Services
DescriptionStart5 Years10 YearsMeasuring Unit
8.1: Site clean-up services90%100%100%Man Hour
8.2: Pollution control20%35%50%Spend
8.3: Waste water treatment and disposal services40%60%90%Man Hour
8.4: Fire and gas protection system services40%60%80%Man Hour
8.5: Ventilation, heating, sanitary services50%70%85%Man Hour
8.6: Waste disposal, drainage services50%80%90%Man Hour
8.7: Industrial cleaning services50%80%90%Man Hour
8.8: Safety, protection, security, fire-fighting systems services30%50%100%Man Hour
8.9: Preservation of mechanical and electrical components services35%55%90%Spend
8.10: Equipment brokerage services30%50%100%Man Hour
8.11: Temporary accommodation camp services50%60%80%Spend
8.12: Catering services100%100%100%Spend
8.13: Cleaning and laundry services100%100%100%Spend
8.14: Security services100%100%100%Spend
8.15: Medical services40%80%100%Spend
8.16: Information Technology services30%50%80%Spend
8.17: Other supporting services50%80%90%Spend
Part 3 – Local Content Levels for Offshore Mid & Upstream Petroleum
ItemStart5 Years10 Years
1. Offshore Mid & Upstream Petroleum: Goods, Works Services, Recruitment and Training10%15%20%

Everyone named

Also named 3Cabinet Secretary · Authority · Tribunal
Law 2Petroleum Act · Insurance Act

Corrections 0

Corrected by
No corrigendum in the issues we hold.
Cites
Insurance Act

Cite

Kenya Gazette Notice No. 9275 of 2025, Vol. CXXVII No. 150, 10 July 2025, p. 4287.

Permalink funua.com/notices/2025/9275/.

About this data

Source
Official PDF of Vol. CXXVII No. 150, from Kenya Law
Extracted by
AI models
Model audit
An independent model agreed with 98 to 99% of compared values for land and succession notices, 97% overall. Agreement between models, not verified accuracy.
Review flag
None on this notice

Filed under: Legislation, 2025 · July 2025 · Vol. CXXVII No. 150