This archive report was first published on 27 August 2019.
On August 27, 2019, the Energy and Petroleum Regulation Authority (EPRA) announced plans to implement the Open Tender System in the importation of Liquefied Petroleum Gas (LPG) to reduce consumer prices.
The Open Tender System allows oil marketing companies to source petroleum and its products from the open market without prior information or contacts, promoting healthy price competition.
Currently, LPG is the only oil product not imported through the open tender system.
As part of the new measures, EPRA will construct an LPG testing unit at the Kenya Bureau of Standards (KEBS) to enhance the importation of LPG from Tanzania.
Imports from Tanzania have been a subject of controversy, with a ban imposed on April 24, 2017, due to concerns over half-filled cylinders sold by dishonest traders.
However, Tanzania felt the ban was a move by influential business people in Kenya to monopolize the business.
The ban was later lifted, but concerns remained over the safety of imported gas. The testing facility will increase consumer confidence and supply.
Kenya's LPG imports mainly come from Bahrain, with an annual consumption of approximately 170 kilotonnes.
