The Export and Wholesale of LPG in Bulk Licence authorizes businesses to engage in large-scale LPG trading, including cross-border activities. This licence, issued by EPRA, is critical for Kenya’s LPG supply chain and supports both domestic distribution and international trade.
Licence Application Process
Applications are submitted through EPRA’s online portal under the bulk LPG export/wholesale category. The process includes thorough financial assessments, storage capacity verification, and compliance checks. EPRA evaluates applicants’ ability to handle large volumes of LPG safely and efficiently.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. The fee-free policy extends to bulk LPG export and wholesale operations.
Documentary Requirements
Applicants must submit:
- Business registration and compliance certificates
- Proof of adequate bulk LPG storage capacity
- International quality and safety certification
- Export contracts and market access documentation
- LPG testing and quality control systems
- Customs and port authority clearances
- Environmental management plans
- Safety and security management systems
- Proof of financial capacity for large-scale LPG trading
Cost Considerations
Substantial indirect costs include:
- Large-scale LPG storage terminal construction or leasing
- International quality testing and certification
- Customs bonding and surety requirements
- Export documentation and compliance systems
- Foreign exchange and financial risk management
- Port and terminal access agreements
- International LPG standards compliance
Regulatory Framework and Penalties
Bulk LPG export and wholesale operations face strict regulatory oversight. Illegal export or wholesale of LPG without a valid licence attracts a minimum fine of KSh 10 million under the Energy Act, 2019. Additional penalties may apply for customs violations or safety breaches.
The fee-free licensing for bulk LPG export and wholesale, combined with Kenya’s strategic location as a regional LPG hub, presents significant opportunities. However, the regulatory requirements are stringent, and the capital investment is substantial. Only well-capitalized businesses with strong compliance frameworks and LPG handling expertise can successfully operate in this segment of the market.
