The widespread use of charcoal and firewood to cook in Kenyan homes continues to cause thousands of deaths among women and children from pneumonia and respiratory diseases caused by the deadly smoke, while drying up the country’s water catchment areas through deforestation.
For these reasons, in 2009, the government of Kenya passed into law the country’s first Liquefied Petroleum Gas (LPG) regulations to promote the use of LPG as a ‘clean fuel’ for domestic cooking.
This delivered a step-change in the number of Kenyan using LPG where consumption rose from 1kg to 2.5 kg per person per year but the country continued to lag behind countries, such as Senegal, Turkey and South Africa that had achieved a rate of 12 kg, 15kg and 6kg per person per year as LPG moved to become their primary cooking fuel.
Moreover, safety issues emerged due to illegal cylinder refills that caused leakages and explosions in the home, with three of Kenya’s largest insurance firms reporting that LPG-related incidents were driving domestic insurance claims.
The impact of the deterioration in safety, confused liability, and a misalignment of cylinder investment and brand ownership, led to declining investment in the Kenyan LPG industry by oil marketers.
As a result, the Government of Kenya drew up new Liquefied Petroleum Gas (LPG) regulations to seal all the loopholes created by the previous regulatory framework and to sustainably reform the segment. The Government policy goal is to achieve LPG consumption of 15 kg per person per year and increase safe cylinder investment from three million to 18 million cylinders in circulation.
PIEA is working in partnership with the government and LPG market participants to ensure the regulations are abided by; to stop malpractices, which have been killing Kenyans; and boost the levels of investment in the LPG industry.
On June 25th 2019, new LPG regulations were gazetted. This guide lays out:
the ways in which the new regulations differ from the previous regulatory regime,
- all elements regulators are now monitoring and enforcing,
- the obligations of the LPG marketers, and
- consumers’ rights.
Apart from the Energy and Petroleum Regulatory Authority (EPRA), the other regulators of the new LPG regulations include the Kenya Bureau of Standards (KEBS), Kenya Revenue Authority (KRA), Anti Counterfeit Agency (ACA), Directorate of Occupational Health and Safety (DOSH), National Environment Management Authority (NEMA), and the County Executive Committees (CEC’s) in public health, environment and energy across the country.
The LPG Regulations 2019 have been designed to deliver a robust legal and regulatory framework that creates confidence for both LPG investors and LPG consumers.
To this end, supply chain licensing has been structured to create effective and sufficient infrastructure that enables the timely importing and storage of the necessary quantities of LPG and an adequate quantity of safe LPG cylinders made accessible to consumers through a well-developed and documented distributor network.
The criteria created for licensing has, furthermore, been designed to address all previous loopholes and omissions that impeded a conducive business environment and guaranteed consumer safety, supported by enhanced penalties to secure those aims.
Participation in the LPG supply chain without a valid license will incur a penalty of Sh5m and three years’ imprisonment.
REQUIREMENTS- Transport of LPG in Bulk
- Scanned original copy of CR 12 from registrar of companies (not older than three months) for Limited Companies;
- Scanned original copy of valid tax compliance certificate from KRA;
- A valid certificate of calibration for the LPG tank mounted on each vehicle
- Fire certificate from the Chief Fire Officer
- A Valid report on examination for LPG tank mounted on each vehicle
- A valid Motor Vehicle Inspection Certificate for each prime mover and trailer
- Log books for each prime mover and trailer
- Valid Medical Surveillance certificate for Drivers from Designated Health Practitioners as per Occupational Health and Safety Act 2007 9. A valid driving license for each driver.
REQUIREMENTS- Storage and Filling of LPG in Bulk
- Scanned original copy of certificate of incorporation/business registration certificate
- Scanned original copy of CR 12 from registrar of companies (not older than three months) for Limited Companies;
- Scanned original copies of Identification documents (IDs or Passports) for all the directors, 4 scanned original copy of Single Business Permit from Respective County Government;
- Scanned original copy of valid tax compliance certificate from KRA; and
- Scanned original copy of PIN/VAT Certificate.
- Scanned original copy of Work permit/Entry Permit Class “H” for foreign directors
- Proof of ownership of the LPG filling facility
- Construction Permit from Energy Regulatory Commission
- Environmental Impact Assessment License from NEMA
- Certificate of compliance with the Physical Planning Act of 1999
- Fire certificate from the Chief Fire Officer 13. A valid copy of certificate of registration of work place from DOSHS 14. Proof of ownership of at least 5,000 cylinders of either 1,3,6 or 13kg/Written authority for filling from the LPG cylinder brand owners
- A valid copy of weighing scale calibration certificate from Weights and Measures Department
- Supply agreement/letter of intent from a licensed LPG importer
- Proof of compliance with the Kenya Standard (KEBS letter)
- A Valid report on examination for LPG tanks
- A valid certificate of calibration for the LPG tanks
REQUIREMENTS – Wholesale of LPG in Cylinders
- Scanned original copy of certificate of incorporation/business registration certificate
- Scanned original copy of CR 12 from registrar of companies (not older than three months) for Limited Companies;
- Scanned original copies of Identification documents (IDs or Passports) for all the directors; 4. Scanned original copy of Single Business Permit from Respective County Government;
- Scanned original copy of valid tax compliance certificate from KRA; and
- Scanned original copy of PIN/VAT Certificate.
- Scanned original copy of Work permit/Entry Permit Class “H” for foreign directors
- Scanned copy of distributorship agreement from LPG Cylinder brand owner
- Weighing scale calibration certificate from Weights and Measures department
REQUIREMENTS – to Import, Export and Wholesale LPG in Bulk
- Scanned original copy of certificate of incorporation/business registration certificate
- Scanned original copy of CR 12 from registrar of companies (not older than three months) for Limited Companies;
- Scanned original copies of Identification documents (IDs or Passports) for all the directors; 4. Scanned original copy of Single Business Permit from County Government;
- Scanned original copy of valid tax compliance certificate from KRA;
- Scanned original copy of PIN/VAT Certificate. ‘
- Scanned original copy of Work permit/Entry Permit Class “H” for foreign directors
- Valid hospitality with a licensed LPG Storage facility at Mombasa.
Penalties and fines outlined in the Petroleum (Liquefied Petroleum Gas) Regulations, 2019
The penalties and fines shall be determined by the Energy and Petroleum Regulatory Authority, and be recoverable summarily as a civil debt. Any person who is dissatisfied with a decision of the EPRA under these regulations may appeal to the Energy and Petroleum Tribunal. Where any default in or contravention of any of the provisions of the regulations is made for which no fine or penalty is expressly stated, the person defaulting or contravening shall on conviction be liable to a fine of not less than Sh100,000.
For illegally refilling cylinders, the penalty will be Sh10m and three to five years imprisonment.
The new LPG regulations have placed new obligations onto oil marketers:
To ensure all cylinders have standard identification features
- Cylinder brand
- Serial number of each cylinder
- Manufacturing date – the cylinder should be revalidated every eight years
- Net weight in KG of the cylinder
