The Energy and Petroleum Regulatory Authority (EPRA) Wednesday raised alarm over an artificial shortage of petroleum products in Kenya, despite assurances that the country has adequate fuel stocks.
In a statement issued by Acting Director General Dr. Joseph Oketch, the regulator said preliminary investigations had uncovered that some Oil Marketing Companies (OMCs) were deliberately withholding fuel supplies from independent retailers in anticipation of a price increase.
EPRA termed the practice as hoarding, warning that it constitutes an offence under the Petroleum Act No. 2 of 2019.
The authority noted that the affected retailers—commonly referred to as independents—have been unable to access supplies due to the restrictive actions by certain licensed firms.
“Such conduct is illegal and distorts the market, causing unnecessary anxiety among consumers,” EPRA said.
The regulator further revealed that some OMCs are selling fuel at ex-depot or wholesale prices above the officially recommended caps, another violation of the law.
EPRA cautioned that companies found guilty of hoarding petroleum products risk a fine of not less than Sh1 million, imprisonment for at least one year, or both. Those charging above the set wholesale prices face stiffer penalties, including fines of not less than Sh10 million or a minimum jail term of five years.
In addition to the penalties, EPRA warned that it will not hesitate to revoke the operational licences of companies found culpable.
The authority reaffirmed its commitment to ensuring compliance within the petroleum sector and protecting consumers from exploitation.
This came as empty petrol stations in Nairobi laid bare the growing impact of a global fuel crisis, as supply disruptions linked to the ongoing U.S.–Israel conflict with Iran begin to bite. The same as replicated in many places in the country. Analysts say the crisis has been worsened by disruptions in key shipping routes, particularly the Strait of Hormuz, a vital corridor that carries a significant share of the world’s oil.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
