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Implementation of Legal Notice No. 121 on Liquefied Petroleum Gas (LPG) - Petroleum Institute of East Africa (PIEA)

In 2013, PIEA began lobbying for an appropriate National Energy Policy.  It successfully lobbied for the review and approval by Cabinet, of the National Energy and Petroleum Policy (NEPP) in 2015. The NEPP was to facilitate the provision of clean, sustainable, affordable, competitive, reliable and secure energy services at least cost while protecting the environment.

The NEPP has a clear strategic policy direction of converting firewood, charcoal and kerosene users to cleaner and modern fuels such as LPG and biogas. The Ministry of Energy has been keen to expedite regulatory reforms in the sector to convert users to LPG.

An LPG stakeholder workshop in May 2016 led to the development of an action plan to implement the NEPP goals on LPG. These goals include the increase of LPG consumption from 2KG per capita per year to 15KG per capita per year, eliminate the use of 1KG cylinders within 36 months (from May 2016) and making LPG the primary household cooking fuel.

Other regulatory changes experience in the sector were the gazettement of the Legal Notice No. 121 on LPG (Energy Act (Liquefied Petroleum Gas) Regulations, 2009). This was aimed at improving access and use of LPG at the household level. A key change has been the standardisation of the unified valve and appliances that enable LPG cylinder interchange between marketers.

While in theory this change was expected to improve ease of use of the cylinders and improve access by consumers, it led to negative implications in the market that PIEA raised to the Ministry.

These were:

  • unfair and anti-competitive trade practices which deceive the consumer and deny them the right to sustained access to LPG brands of their choice
  • reduced safety standards which render hazards to the public and environment
  • high operating costs and financial risk to the brand owners, discouraging
  • investment requirements in cylinders and infrastructure needed to ensure every household has adequate access to LPG energy
  • the licensing criteria must address all the loopholes and omissions that have continued to impede the realization of a regulatory framework that promotes a conducive business environment and growth of the LPG market segment

PIEA has advocated for the review of LPG regulations leading to the development of a revised Legal Notice No. 121, which was finalised and is due for gazetting.

As of July 2018, PIEA is seeking to undertake an education and information campaign, targeted mainly at the players along the LPG supply chain, to expedite implementation of the changes once they are gazetted.

Also, see the following resources :

  1. Macharia Kamau, Why refilling your gas cylinder will soon be one arduous task, Standard Digital, August 7 2018
  2. Elvis Ondieki, Pool gas cylinder arrangement faces demise, Daily Nation, May 7 2018
  3. Vincent Achuka, Draft law sets hard rules on LPG sale, Standard Digital, May 6 2018
  4. Kennedy Senelwa, New cooking gas rules set to take effect, Saturday Nation, May 23 2009
  5. Eng. Kaburu Mwirichia, Presentation-Energy Regulatory Commission Overview of LPG Regulatory Framework in Kenya, 2011, WLPGA East Africa Regional Summit Nairobi 6th July 2011
  6. James Ondigo, Presentation - LPG Cylinder Exchange Pool Status, 2011, WLPGA East Africa Regional Summit Nairobi 6th July

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