The Wholesale of LPG in Cylinders Licence authorizes businesses to distribute LPG cylinders to retailers and directly to consumers in bulk quantities. This licence, issued by EPRA, is essential for the cylinder distribution network that serves households and businesses across Kenya.
Licence Application Process
Applications are submitted through EPRA’s online portal under the “Wholesale of LPG in Cylinders” category. The process includes verification of storage capacity, distribution networks, and cylinder management systems. EPRA ensures that wholesalers have the infrastructure to handle cylinder logistics safely and efficiently.
Fee Structure
No fees are charged for Petroleum Business Licences issued by EPRA. This includes LPG cylinder wholesale 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
- Proof of ownership of at least 5,000 cylinders (various sizes)
- Storage facility specifications and certification
- Cylinder testing and requalification procedures
- Fire safety certificates and emergency response plans
- Distribution network and logistics plans
- Safety management system documentation
Cost Considerations
Key indirect costs include:
- Cylinder inventory acquisition (5,000+ cylinders of various sizes)
- Cylinder storage and handling facilities
- Cylinder testing and maintenance equipment
- Distribution fleet or third-party logistics contracts
- Branding and marketing for cylinder distribution
- Quality control and cylinder tracking systems
- Compliance with cylinder safety standards
Regulatory Framework and Penalties
LPG cylinder wholesale operations are subject to continuous monitoring. Operating without a valid licence can result in fines of not less than KSh 1 million. Additional penalties apply for safety violations, cylinder quality failures, or unauthorized distribution.
With no licence fees from EPRA, businesses can focus their investments on building cylinder distribution capacity. The growing demand for LPG in Kenya creates opportunities for wholesalers who can meet the technical and safety requirements. Proper planning and investment in cylinder inventory and distribution infrastructure can lead to successful operations in this important sector.
