This archive report was first published on 7 January 2020.
Kenya's LPG Industry on the Brink of Crisis ¶
January 7, 2020
The Energy and Petroleum Regulatory Authority (EPRA) has refused to extend the implementation period of the Petroleum Act 2019, which requires LPG retailers, wholesalers, and transporters to hold licenses for each business location.
The law, which was set to take effect on June 25, 2019, has been a bone of contention between EPRA and the Energy Dealers Association (EDA), which represents over 55% of the retail market.
EDA General Secretary Kepher Odongo had requested an extension of the implementation period, citing that many retailers had not been issued with relevant licenses and were yet to obtain county licenses and permits.
"We are currently but urgently requesting for an extension of the transition period for a further six months," Mr Odongo wrote in a letter dated December 23, 2019.
However, EPRA Director General Pavel Oimeke rejected the request, stating that the regulations had provided a six-month transition period that ended on December 31, 2019.
"The Authority notes that all applications for licenses for retail of LPG in cylinders that have been received since the coming in force of the regulations have been processed within the aforementioned timelines," Mr Oimeke wrote in a letter dated December 31, 2019.
EDA has accused EPRA of double standards, claiming that multinational petrol stations dealing in LPG are allowed to operate without the said licenses.
"Why kill the businesses of common mwananchi at the expense of foreign companies? You cannot subject traders to get documents from other government agencies and then sit on them for 30 days," Mr Odongo warned.
