The Retail of Petroleum Products Licence (excluding LPG) is the most common petroleum licence in Kenya, authorizing businesses to operate petrol stations and sell fuel products directly to consumers. This licence is regulated by EPRA and is essential for the country’s fuel distribution network.
Licence Application Process
Applications are submitted online via the EPRA portal under the “Retail of Petroleum Products (Except LPG)” category. The process includes site inspections to verify compliance with safety and environmental standards before approval.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. This includes all retail petroleum product licences, making it easier for businesses to enter the fuel retail sector.
Documentary Requirements
Applicants must provide:
- Certificate of Incorporation/Business Registration
- CR12 and director identification documents
- Tax Compliance Certificate from KRA
- County government Single Business Permit
- Land ownership proof or lease agreement (minimum 15 years)
- Site layout and building plans approved by county government
- Fire clearance certificate
- Environmental impact assessment or audit report
- Fuel storage tank specifications and certification
- Dispensing equipment calibration certificates
- Safety equipment and procedures documentation
- Proof of adequate insurance coverage
Cost Considerations
While the licence is free, establishing a petrol station involves significant investment:
- Land acquisition and preparation (minimum 0.5 acres in urban areas)
- Construction of fuel station infrastructure
- Fuel storage tanks (underground or above-ground)
- Dispensing pumps and equipment
- Fire suppression systems
- Environmental protection measures
- Safety and security systems
- Branding and marketing
- Working capital for fuel inventory
Regulatory Framework and Penalties
Retail operations are subject to continuous monitoring by EPRA. Operating a petrol station without a valid licence can result in fines of not less than KSh 1 million. Additional penalties apply for safety violations, environmental breaches, or quality control failures.
EPRA’s fee-free policy for retail petroleum licences significantly reduces the regulatory burden on new entrants. However, the capital investment required to establish a compliant petrol station remains substantial. The regulatory framework ensures that all retail outlets meet stringent safety, environmental, and quality standards, protecting both consumers and the environment. With careful planning and adequate investment, businesses can successfully enter Kenya’s lucrative fuel retail market.
