This archive report was first published on 4 January 2020.
Kenya's cooking gas market is bracing for a potential price hike as retailers close their shops in protest of new Liquefied Petroleum Gas (LPG) regulations. The regulations, which came into force on January 1, 2020, have already led to a gas shortage in some parts of the country.
According to the new regulations, retailers must register their businesses and obtain valid licenses from the Energy and Petroleum Regulatory Authority. Failure to comply will result in hefty fines, including a Sh50,000 penalty for selling cooking gas without a receipt.
The rules also impose a Sh10 million fine for discharging bulk gas in a location without regulatory approval. Retailers will also have to pay more than Sh1 million for selling gas without permits or transporting the commodity in a vehicle not approved by the energy regulator.
Additionally, failing to keep gas cylinder records for more than a year will attract a fine of Sh50,000 for each offence. The new regulations were passed by parliament in June last year and were implemented on January 1, 2020.