The National Assembly of Kenya has invited the public and stakeholders to submit memoranda on the proposed Special Economic Zones (Amendment) Bill 2026, a law that seeks to expand the Special Economic Zones framework to include oil and gas sector activities and support petroleum investments in the South Lokichar Basin.
In a public notice issued by the Clerk of the National Assembly, S. Njoroge on Monday, the House said the Bill is currently under consideration following its First Reading on March 12, 2026. It has since been referred to the Departmental Committee on Trade, Industry and Cooperatives for review and public participation before it is debated further in Parliament.
“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.
It further adds that National Assembly Standing Order 127(3) obligates House committees considering Bills to ensure the public is given an opportunity to participate in the legislative process.
According to the notice, the Bill is sponsored by the Leader of the Majority Party Kimani Ichung'wah and seeks to implement resolutions adopted by both Houses of Parliament following the consideration of a report by a joint parliamentary committee on energy.
The report examined the Field Development Plan and Production Sharing Contracts for Blocks T6 and 17 located in the South Lokichar Basin.
Parliament recommended extending fiscal incentives and concessions to investors involved in midstream and upstream petroleum operations to encourage investment in the sector.
“To actualise the resolutions by Parliament, it has become necessary for the National Assembly to formulate a legal framework to address identifiable gaps in the prevailing legal framework, and thereby facilitate commercial development of oil discoveries and exploratory activities in the Lokichar Basin,” the notice read in part.
The proposed amendments aim to strengthen the current Special Economic Zones framework and align it with the operational needs of large-scale capital investments, particularly those in the petroleum sector.
The Bill also seeks to expand the scope of SEZs to include oil and gas activities and allow SEZ developers and operators in oil and gas zones to undertake enterprise activities within the zones.
The legislation also proposes to harmonise tax incentives applicable to SEZ entities engaged in oil and gas operations. It will also introduce consequential amendments to several existing laws, including the Miscellaneous Fees and Levies Act, the Income Tax Act, and the Value Added Tax Act, to align fiscal incentives with the proposed SEZ changes.
The Clerk of the National Assembly has called on interested parties to submit their views on the Bill before the deadline.
“The memoranda may be forwarded to the Clerk of the National Assembly… to be received on or before Wednesday, 25th March 2026 at 5.00 p.m.,” the notice stated.
Copies of the Bill are available at the National Assembly Table Office at Parliament Buildings in Nairobi and on the Parliament website.
