This archive report was first published on 14 September 2019.
September 14, 2019
Suppliers of liquefied petroleum gas (LPG) are on the brink of a strike, citing harassment by police as the main reason.
The Energy Dealers Association (EDA), a consortium of over 30 LPG brands across the country, has threatened to withdraw its services if the harassment does not stop within seven days.
According to EDA Secretary General Kepher Odongo, police officers have been selectively enforcing the new law requiring all LPG retailers, wholesalers, and transporters to acquire licenses for their businesses.
Mr. Odongo alleged that the police have been targeting small LPG firms while multi-national firms and petrol stations, which are also required to have licenses, have been excluded from the exercise.
"We want the energy regulator to stop harassment of retailers, we will direct our members to stop selling gas to the public," Mr. Odongo said on Saturday.
It is estimated that EDA members control 55% of the retail market, while the rest is served by marketers such as Shell, Vivo Energy, KenolKobil, and Total Kenya.
The Petroleum Act 2019 requires retailers to obtain prior written consent from brand owners for specific authorized cylinder brands.
However, the law provides for a three-month sensitization period for the regulator to spread awareness among LPG dealers about the new rule.
Despite this, Mr. Odongo is concerned that the window period elapsed without dealers being sensitized, and the law prescribes stiff penalties for non-compliance, including a fine of not less than Sh10 million or a jail term not less than five years or both.
