This archive report was first published on 24 June 2020.
June 24, 2020
Kenya's liquefied petroleum gas (LPG) market has been plagued by a cartel that has taken advantage of lax enforcement to thrive, despite the introduction of tough regulations last year.
The cartel, which comprises high-ranking state officials, politicians, police, and judicial officers, has been involved in the theft of cylinders for illegal refilling and the establishment of refilling plants in residential areas.
According to a report by the Nation, the cartel has been able to operate with impunity due to the lenient punishments meted out to suspects by the regulator, the Energy and Petroleum Regulatory Authority (Epra).
One shocking incident involved a night raid by officers from the Anti-Counterfeit Authority (ACA) and the Directorate of Criminal Investigations (DCI) on a warehouse in Syokimau, where they confiscated close to 600 cylinders belonging to 42 different brands that the dealer was refilling without authorization.
Despite the success of the raid, the suspect was later released on a Sh20,000 bond and allowed to continue operating, sparking a fierce fight between Epra and lawyers representing the cylinders brand owners.
Lawyer Omondi Omollo, representing one of the cylinder owners, wrote to Epra in protest, forcing the regulator to rescind its decision and allow the case to proceed.
The case has highlighted the enforcement gaps in the LPG market, with dealers accusing Epra of pampering offenders and ACA of failing to crack down on brand counterfeiters.
Dealers have also expressed frustration over the rampant theft of cylinders and have sought permission to conduct their own enforcement to protect their businesses.
