- The proposed Act applies to natural resources including sunlight, water resources, forests, biodiversity and genetic resources.
- Bill would set up benefit-sharing in natural resource exploitation between resource exploiters, the national government, counties and local communities.
Image: FILE
Community forest associations are pushing to have the Natural Resource Benefit Sharing Bill passed into law.
Daniel Gathiru, project assistant of the National Alliance of Community Forest Association, said they have been involved in policy formulation of the cost and benefit sharing Bill.
The Bill is currently at the Senate.
“The Bill looks at how revenues of natural resources trickle down to the communities. It is basically about sharing of natural resources. We are building the capacity and trying to ensure that when the Bill goes to Parliament it is passed into law,” Gathiru told the Star on Monday.
He added that the Bill advocates for how revenue from exploitation of natural resources is shared in a fair and equitable manner.
“It also stipulates who is doing what and how they stand to benefit from it. It gives figures and percentages that will be shared within a given natural resource,” he said.
According to the Kenya Gazette Supplement Senate Bills, dated November 8, 2022, the Natural Resources (Benefit Sharing) Bill seeks to establish a system of benefit sharing in natural resource exploitation between resource exploiters, the national government, county governments and local communities.
The proposed act applies to natural resources including sunlight, water resources, forests, biodiversity and genetic resources, wildlife resources, industrial fishing and wind.
“Guiding principles of benefit sharing under this Act will be transparency and inclusivity; revenue maximisation and adequacy; efficiency and equity; accountability and participation of the people; rule of law and respect for human rights of the people and sustainable natural resources management,” the Bill reads.
The Bill also stipulates functions of the Commission on Revenue Allocation.
In addition to its principal functions under Article 216(1) of the Constitution and Section 10(1)(d) of the Commission on Revenue Allocation Act, the Commission shall be responsible for the implementation of this Act.
The commission will coordinate the preparation of benefit sharing agreements between an affected county and an affected entity. It will also review, and where appropriate, determine the royalties’ payable by an affected entity engaged in natural resource exploitation.
The Commission on Revenue Allocation will be tasked to identify counties that are required to enter into a benefit-sharing agreement under this Act in consultation with the respective county governments, among other mandates.
The bill also indicates that every affected entity shall enter into a benefit sharing agreement with the relevant county government before the exploitation of a natural resource in the affected county.
The Bill shows that the Kenya Revenue Authority shall declare and account to the Commission the total sum collected from affected entities with respect to each natural resource as provided for under this Act.
Twenty per cent of the revenue collected shall, subject to subsection (2), be paid into a sovereign wealth fund established by the National Government.
Eighty per cent of the revenue collected shall be subject to subsection (3), be shared between the National Government and county governments in the ratio of 60 per cent to the National Government and 40 per cent to the counties," the Bill states.
At least 40 per cent of the revenue assigned to county governments under subsection (1)(b) shall be utilised to implement local community projects and 60 per cent of that revenue shall be utilised for the benefit of the entire county.
“Where natural resources bestride two or more counties, the Commission shall determine the ratio of sharing amongst the affected counties in consultation with the counties,” the Bill shows.
Gathiru said there has been a lack of ownership from the Community Forest Associations (CFAs) and that this will be a thing of the past if the Bill is passed.
“This will ensure there is a sense of ownership and responsibility amongst the CFAs, hence, the reason we are pushing for it to become an Act,” Gathiru said.
(Edited by V. Graham)