NAIROBI, Kenya — Kenyans have been invited to submit views on a proposed law seeking to strengthen the country’s oil and gas investment framework by expanding the role of Special Economic Zones and introducing targeted fiscal incentives for petroleum projects.
The proposed legislation, the Special Economic Zones (Amendment) Bill, 2026, is sponsored by Kimani Ichung’wah and aims to implement parliamentary resolutions related to the commercial development of oil discoveries in Turkana.
The National Assembly of Kenya invited members of the public and stakeholders to submit memoranda following the Bill’s First Reading on March 12, after which it was referred to the Departmental Committee on Trade, Industry and Cooperatives for detailed consideration.
In a notice issued under Article 118 of the Constitution of Kenya and the National Assembly Standing Orders, the Clerk of the National Assembly, Samuel Njoroge, emphasised the constitutional obligation to facilitate public participation in the legislative process.
“Whereas Article 118(1)(b) of the Constitution of Kenya requires Parliament to facilitate public participation and involvement in the legislative and other business of Parliament and its committees,” the notice stated, “the Clerk hereby invites the public and stakeholders to submit memoranda on the Bill.”
The proposed amendments stem from recommendations made by a joint parliamentary committee that reviewed the Field Development Plan and Production Sharing Contracts for oil blocks T6 and T7 located in the South Lokichar Basin.
The joint committee, comprising the National Assembly Departmental Committee on Energy and the Senate of Kenya Standing Committee on Energy, recommended the introduction of fiscal incentives and concessions to attract investors to midstream and upstream petroleum operations.
Lawmakers concluded that gaps in the existing legal framework could hinder the commercialisation of Kenya’s oil discoveries and the expansion of exploration activities in the Lokichar Basin.
To address these challenges, the Bill proposes amendments to the Special Economic Zones Act to strengthen the regulatory and fiscal framework governing SEZs and align it with the operational requirements of large-scale capital investments, particularly in the petroleum sector.
According to the notice, the amendments would expand the scope of Special Economic Zones to include oil and gas activities and allow developers and operators within such zones to undertake enterprise operations linked to petroleum development.
The Bill also seeks to harmonise tax incentives applicable to SEZ entities engaged in oil and gas projects by introducing consequential amendments to the Income Tax Act (Kenya), the Value Added Tax Act (Kenya), and the Miscellaneous Fees and Levies Act (Kenya).
Supporters of the proposal argue that the reforms could help unlock stalled investments and accelerate the development of Kenya’s emerging petroleum sector, particularly in Turkana, where oil discoveries have been under evaluation for several years.
Kenya discovered commercially viable oil reserves in the Lokichar Basin more than a decade ago, but full-scale production has yet to begin amid regulatory, infrastructure, and financing challenges.
Parliament officials said copies of the Bill are available at the National Assembly Table Office and on the Parliament website. Members of the public may submit their views by post, hand delivery to the Office of the Clerk at Parliament Buildings, or via email.
All memoranda must be submitted to the Departmental Committee on Trade, Industry, and Cooperatives by March 25, 2026, at 5:00 p.m., after which the committee will review the submissions and present its report to the House for debate.
