The transportation of petroleum products in Kenya, excluding Liquefied Petroleum Gas (LPG), is regulated by the Energy and Petroleum Regulatory Authority (EPRA). This licence is required for businesses engaged in the road transport of petroleum products such as petrol, diesel, kerosene, and jet fuel.
Licence Application Process
All applications for Petroleum Transport Licences are submitted online through the EPRA portal. The process involves creating an account, selecting the “Transport of Petroleum Products (Except LPG)” category, completing the application form, and uploading the required documents. EPRA evaluates applications within 30 days from the date of receipt, provided all requirements are met.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. This policy, confirmed by EPRA’s licensing guidelines, aims to reduce barriers to entry and encourage compliance within the petroleum transport sector. Applicants only need to cover the costs of obtaining the required supporting documents.
Documentary Requirements
Applicants must provide:
- Certificate of Incorporation/Business Registration Certificate
- CR12 from the Registrar of Companies (not older than one year)
- Copies of ID/passport of all directors
- Valid Tax Compliance Certificate from KRA
- Valid Single Business Permit from the county government
- Proof of ownership or lease agreement for transport vehicles
- Valid insurance certificates for all transport vehicles
- Vehicle inspection certificates from EPRA or authorized bodies
- Fire clearance certificates for storage/loading facilities
- Details of safety equipment and procedures
Cost Considerations
While the licence itself is free, businesses must budget for significant indirect costs:
- Vehicle acquisition and maintenance
- Insurance premiums for hazardous goods transport
- County government permits and clearances
- Safety equipment and training
- Compliance with environmental regulations
Regulatory Framework and Penalties
EPRA enforces strict safety and operational standards for petroleum transport. Operating without a valid licence or violating transport regulations can result in severe penalties, including fines of not less than KSh 1 million for illegal transportation of petroleum products, according to the Energy Act, 2019.
EPRA’s decision to waive licence fees for petroleum transport businesses significantly lowers the financial barrier to entry. However, the stringent documentary and operational requirements ensure that only serious, well-prepared operators enter the market. Businesses must invest in compliance, safety, and infrastructure to meet EPRA’s standards while benefiting from the fee-free licensing regime.
