The establishment of LPG (liquefied petroleum gas) companies in Kenya has steadily increased in recent years as the demand for gas increases.
On February 2, a massive gas explosion occurred in the Embakasi region, killing several people and injuring dozens in Nairob.
Seven deaths have been confirmed so far.
But since many people now prefer to use gas for cooking, what does it take to start an LPG refilling business?
Apart from the Energy and Petroleum Regulatory Authority, anyone entering the business will need approvals from other regulators such as the Kenya Bureau of Standards, the Kenya Revenue Authority and the Anti-Counterfeiting Agency.
Others include the Occupational Safety and Health Directorate, the National Environmental Management Authority, and the County Executive Committee (CEC) for public health, environment, and energy.
All operations in the LPG industry must be licensed by EPRA. These include importers, exporters, manufacturers, wholesalers, distributors, and retailers.
Prior to the publication of the new LPG regulations on June 25, 2019, this requirement was not fully enforced, leading to illegal trade, illegal rebranding, illegal filling, and counterfeiting of gas cylinders. .
Additionally, the regulator has ensured that oil marketing companies, also known as brand owners, implement safe cylinders with uniform valves as prescribed by Kenyan standards.
To obtain an EPRA license, you must provide a business location. LPG safety requirements must also be met to avoid disasters such as fire.
It is required to provide a qualitative risk assessment that shows the effects of a typical explosion and helps review the safety of the surrounding area.
Qualitative risk analysis is the process of prioritizing risks for further analysis or action by evaluating and combining their probability of occurrence and impact.
It is a method to discover the probability that a risk event will occur and the impact it will have if it occurs.
Additionally, the installation site must be within at least a 100 meter radius of an existing third-party LPG filling plant and far from any residential buildings, public buildings, public gathering places, industrial sites, or pressurized LPG tanks. Must be apart.
You must register with EPRA and apply for a storage and filling license.
An inspection notice will be issued before the actual assessment takes place. If approved, a storage and filling license will be granted.
A trading license is also required. Like any other business, you will need a trading license obtained from your local or county office.
A firefighting license is also required. This is taken as proof that the requirements for avoiding fire are met and that if a fire does occur, it can be controlled.
KRA certificate is also one of the requirements. This certificate is to ensure that your business complies with tax requirements.
Proof of weights and measures is required.
This certificate is obtained to ensure that the gas meets the required weight and dimensions. Cylinder filling and handling will also be evaluated before obtaining permission to start operations.
Handling should be mechanized if possible, as both full and empty LPG cylinders can cause serious injuries when handled manually.
Wear appropriate personal protective equipment when handling cylinders by hand. Mishandling of the cylinder can cause injury or damage or uncontrollable release of LPG.
Licensing is done through EPRA's Petroleum Licensing Board in accordance with the requirements of the Energy Act 2019 and the Petroleum Act 2019, and applications for licenses are assessed within 30 days from the date of receipt of the application.
Licenses issued under the Energy Act 2019 and the Petroleum Act 2019, valid for one calendar year. All petroleum business licenses issued by EPRA are free of charge.
