Petroleum Transport Licence (Railway) Fees / Charges

Railway transportation of petroleum products in Kenya is a specialized category regulated by EPRA, designed for businesses moving bulk petroleum via rail networks. This licence ensures that rail transport of hazardous petroleum products meets the highest safety standards.

Licence Application Process

Applications are submitted through the EPRA online portal, selecting the "Petroleum Transport Licence (Railway)" category. The process follows the standard EPRA workflow: account creation, form completion, document upload, and submission. Given the specialized nature of railway petroleum transport, EPRA may conduct additional technical assessments and site inspections before approval.

Fee Structure

No fees are charged for Petroleum Business Licences issued by EPRA. This includes the specialized Railway Transport Licence category. The fee-free policy extends across all petroleum sector licences administered by EPRA.

Documentary Requirements

In addition to standard business documents (incorporation certificate, CR12, director IDs, tax compliance), railway petroleum transport applicants must provide:

Proof of partnership or agreement with Kenya Railways Corporation or licensed rail operator
Rail tank wagon specifications and certification
Rail transport safety management system documentation
Emergency response plans for rail incidents
Environmental impact assessment approvals
Proof of compliance with rail transport regulations

Cost Considerations

The indirect costs for railway petroleum transport are substantial:

Specialized rail tank wagon acquisition or leasing
Rail access fees and trackage rights
Enhanced insurance coverage for rail transport of hazardous materials
Advanced safety and monitoring equipment
Dedicated loading/unloading facility infrastructure
Specialized staff training and certification

Regulatory Framework and Penalties

Railway transport of petroleum products is subject to both EPRA regulations and Kenya Railways Corporation rules. The Energy Act, 2019 imposes heavy penalties for non-compliance, including fines exceeding KSh 10 million for illegal transportation of petroleum products. Additional penalties may apply under railway safety regulations. The fee-free licensing for railway petroleum transport, combined with the economies of scale for bulk movement, makes rail an attractive option for large-scale petroleum distribution. However, the high capital investment in specialized equipment and infrastructure, coupled with stringent safety requirements, means this sector is best suited for established operators with significant resources and expertise.

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