A nationwide clampdown on illegal LPG refilling plants has recovered 26,000 cylinders in the past three years that brand owners blame for losses of Kshs 1.2 billion annually. The losses stem from the inability of licensed brand owners to benefit from their investments in manufacturing cylinders, marketing their brands through advertisements and loss of business as LPG cylinders released to the market are hardly returned for refilling.
The operation conducted between June 2023 and June 2024 by a multi-agency team led by staff from the Energy and Petroleum Regulatory Authority (EPRA) took place in Nairobi, Mombasa, Nakuru, and Eldoret where 32 LPG refill facilities operating illegally were shut down.
EPRA, Director General, Daniel Kiptoo, said the first batch of 6,000 LPG cylinders has been returned to brand owners with subsequent discharges of LPG cylinders impounded from unscrupulous dealers set to take place in due course.
The decision comes days after a multi-agency team comprising EPRA staff, and other government regulatory and enforcement agencies raided a home at Utidhini Area in Machakos County, where an illegal refilling plant was closed down. The multi-agency team impounded an LPG tanker, LPG refill equipment and unassorted empty LPG cylinders lined up for refilling.
The raid also seized a mini-lorry and its consignment of refilled LPG cylinders ready for distribution to the market. Four people found at the premises have since been arraigned before court to answer criminal charges of operating an illegal LPG cylinder refill plant. EPRA warned that any offending facility will see their LPG refill equipment impounded and LPG refill licences revoked.
According to the Energy (Liquefied Petroleum Gas) Regulations, 2009, no LPG refill facility should refill, rebrand, deface, or submit LPG cylinders belonging to another brand for maintenance. Any LPG dealer must possess their own registered brand of at least 5,000 LPG cylinders or possess a written agreement allowing them to conduct refill business using the branded LPG cylinders from registered brand owners.
The use of LPG is set for triple-fold growth as the government implements the LPG Reticulation Project, which aims to install LPG reticulation kits in 5,000 public schools by the end of the year.