Kenya: Bill Proposes Geothermal Companies Pay Royalty of up to 2.5% Per Year of Earnings

How powerful Cabinet Secretary can stop royalty plan for communities in geothermal rich areas (Standard Digital)

Communities living in areas bordering energy firms that use geothermal steam to produce electricity could start earning from the resource if a new bill sails through.

The Energy Bill 2017 proposes setting up of a royalty fund where companies such as KenGen and OrPower 4 Inc will in the initial years pay up to 2.5 per cent of their geothermal revenues, which will be shared by the communities and Government.

The bill, however, dampens what would have been a party for communities in geothermal steam rich regions by giving immense powers to the Cabinet Secretary to do away with the royalties at will without consultations.

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