The Energy and Petroleum Regulatory Authority (EPRA) oversees the licensing and regulation of petroleum storage facilities in Kenya under the Energy Act of 2019. Obtaining a petroleum storage licence is a mandatory requirement for any entity seeking to operate storage depots for petroleum products, including crude oil, refined products, and liquefied petroleum gas (LPG).
Regulatory Framework
EPRA, formerly the Energy Regulatory Commission, was established to ensure safe and efficient operations in Kenya’s petroleum sector. The authority regulates all aspects of petroleum storage, from small retail stations to large bulk storage depots. Currently, Kenya has 27 licensed storage depots with a combined capacity exceeding 1.5 billion litres, strategically located across the country to support national fuel distribution.
Licence Categories and Requirements
Petroleum storage licences in Kenya are categorized based on the type and scale of operations. For bulk storage depots, applicants must provide proof of ownership or a long-term lease of at least five years for a licensed facility. Additional requirements include certified audited accounts showing an annual turnover of USD 10 million for applicants with operations outside Kenya, proof of membership in an Oil Spill Contingency Group, and fulfillment of line fill obligations from the Kenya Pipeline Company (KPC).
For LPG storage in bulk, the requirements are similarly stringent, ensuring that only financially stable and technically capable entities can operate in this critical sector. The application process involves submitting a Certificate of Incorporation or Business Registration Certificate, along with other compliance documents.
Fee Structure
While specific licence application fees are not publicly disclosed in detail, EPRA implements a structured tariff system for petroleum storage operations. Recent adjustments have seen storage fees at KPC’s four main depots increase to KSh 4,175 per cubic metre. These tariffs are reviewed every three years in accordance with the Energy Act, with the latest review cycle covering the financial years 2025/2026 to 2027/2028.
The Kenya Pipeline Company (KPC) plays a central role in the storage ecosystem. KPC’s Nairobi depot, for instance, has seen tariff increases approved by EPRA, rising from KSh 2,074.5 to KSh 2,526.6 per cubic metre. These adjustments aim to enhance revenue for KPC while ensuring the sustainability of petroleum storage and distribution infrastructure.
Application Process
Prospective applicants can apply for petroleum storage licences through EPRA’s online licensing portal. The process involves submitting required documentation, paying applicable fees, and undergoing a compliance verification process. EPRA conducts public consultations and workshops to ensure transparency and stakeholder engagement in tariff reviews and licensing decisions.
Economic Impact
The cost of petroleum storage licences and associated tariffs directly impacts fuel prices in Kenya. Storage and distribution costs contribute approximately KSh 4.67, KSh 4.40, and KSh 4.36 per litre for petrol, diesel, and kerosene, respectively. These costs, combined with transportation charges and other levies, form part of the final retail price that consumers pay at the pump.
EPRA’s regulatory oversight ensures that storage licence fees and tariffs remain competitive while supporting the growth and maintenance of Kenya’s petroleum infrastructure. By balancing industry needs with consumer protection, EPRA plays a pivotal role in maintaining a stable and efficient petroleum supply chain across the country.