In Kenya, the petroleum sector is governed by: The Constitution of Kenya, 2010, Energy Act, No. 1 of 2019, Petroleum Act, No. 2 of 2019 and the Model Production Sharing Contract (PSC). The Petroleum Act, 2019 provides a framework for the contracting, exploration, development and production of petroleum; cessation of upstream petroleum operations and to give effect to relevant articles of the Constitution in so far as they apply to upstream petroleum operations. The model PSC provides the framework for negotiations of terms with oil exploration companies in Kenya. The Cabinet Secretary responsible for petroleum enters PSCs with oil exploration companies on behalf of the National Government.

EPRA's primary function is to regulate the exploration, extraction, production, processing, transportation, storage, exportation, importation, and sale of petroleum. To establish a robust regulatory framework, EPRA has developed and reviewed several draft regulations in collaboration with various stakeholders, including the Economic Planning, Legal, and Regulatory departments, and the State Department of Petroleum. The draft regulations include:

    (a) Petroleum (Upstream Petroleum Rights Management and Administration) Regulations, 2024

    (b) Petroleum (Upstream Petroleum Operations) Regulations, 2024

    (c) Petroleum (Local Content) Regulations, 2024

    (d) Petroleum (Upstream Petroleum Cost Management) Regulations, 2024

    (e) Petroleum (Upstream and Midstream Environmental, Health, and Safety) Regulations, 2024

By maintaining a robust regulatory framework, EPRA promotes transparency, accountability, and efficiency in the upstream petroleum sector.