Gov't lists new measures for LPG traders

Among them is a regulation that will see refilling LPG cylinders restricted between 6:00 am and 6:00 pm unless otherwise authorized by the Energy and Petroleum Regulatory Authority (EPRA). 

At the same time, autogas stations will be mandated to operate in compliance with specified hours to reduce risks, with specifics varying based on local EPRA guidelines. 

Other requirements include operating with proper licensing or permits, failure to which an operator could be slapped with huge penalties and also face closure of the business, non-compliance with safety measures like fire extinguishers, emergency controls, or storage standards may also lead to hefty fines and operational shutdowns. 

While cylinder mismanagement engaging in unauthorized refilling, tampering with seals, or failing to requalify cylinders as required attracts financial penalties and sanctions.

The regulations come nearly a year following the deadly gas blast that led to the death of six people leaving over 200 others with injuries, in February of 2024. 

Sector player could also see their licences suspended for up to 9 months for general non-compliance while some cases may result in permanent revocation of licenses in severe cases. 

An issue that energy sector players now say is severe punishment, and which they note will have adverse effects on energy sector players.

At the same time, the sector players lamented over restrictive times for operation capped at between 0600-1800, adding it contrasts with the vision towards a 24-hour economy, and that the restrictions will limit operations and affect the supply and demand chain. 

The concerns by the players come two weeks after President William Ruto formed a task force to investigate which businesses were leaving Kenya and come up with recommendations on how to arrest business and capital flight out of the market.

Additionally, the sector players have raised concerns over the increase in the number of gas cylinder owners from 30,000 to 70,000 under the proposed regulations noting that it will discourage businesses.

 However, in an effort to cushion consumers, the regulations will require LPG suppliers to maintain accessible systems for logging, investigating, and resolving complaints, which include escalation to EPRA for unresolved issues.

The regulations will also see consumers pay a deposit when acquiring LPG cylinders, which must be refunded upon cylinder return, with the deposits being fixed according to regulations and cannot be deducted for cylinder wear or degradation.