The storage and filling of Liquefied Petroleum Gas (LPG) in bulk is a critical link in Kenya’s LPG supply chain, regulated by EPRA. This licence authorizes businesses to operate bulk storage terminals and fill LPG into tanks, cylinders, or transport vehicles for distribution to retailers and industrial users.
Licence Application Process
Applications are submitted through EPRA’s online portal under the “Storage and Filling of LPG in Bulk” category. The process includes site inspections, safety audits, and environmental impact assessments. EPRA verifies that facilities meet stringent safety standards for handling large quantities of pressurized LPG.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. This includes bulk LPG storage and filling operations.
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
- Valid EIA licence from NEMA
- Proof of land ownership or long-term lease
- Detailed engineering drawings of storage facilities
- LPG storage tank specifications and certification
- Fire safety certificates and emergency response plans
- Proof of ownership of minimum required LPG storage capacity
- Safety management system documentation
- Insurance coverage for bulk LPG storage
Cost Considerations
Indirect costs for bulk LPG storage and filling are substantial:
- Land acquisition and preparation (minimum 2-5 acres)
- Construction of LPG storage spheres or bullets
- Fire suppression and safety systems
- Environmental protection infrastructure
- LPG handling and filling equipment
- Weighing and measuring systems
- Quality control and testing facilities
- Compliance with international LPG standards
Regulatory Framework and Penalties
Bulk LPG operations are subject to multiple regulatory layers. Illegal storage or filling of LPG without a valid licence can result in fines of not less than KSh 10 million under the Energy Act, 2019. Additional penalties may apply for environmental violations or safety breaches.
While EPRA does not charge licence fees for bulk LPG storage and filling, the capital and compliance costs are among the highest in the petroleum sector. The regulatory environment ensures that only operators with significant financial capacity, technical expertise, and commitment to safety can enter this critical sector. The fee-free licence policy helps offset some of the regulatory burden, but the overall investment required remains substantial.
