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The New Regulations Bound To Alter The Oil Sector In Kenya

The New Regulations Bound To Alter The Oil Sector In Kenya

February 10, 2023 1:07 am

Cynthia Kendeli

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Energy Regulatory Commission in Kenya is to alter the oil rules. The Energy Regulatory Commission announced its intention to issue new rules for importation and holding petroleum with an aim of eliminating speculators in the oil market. The new proposed changes in the oil and petroleum sector were to foster investment in the petroleum sector in Kenya. The rules in the oil industry have to be adjusted as they do not favour investments as they are.

The new rules to be issued by the Energy Regulatory Commission will also shift the oil storage mandate from Kenya Pipeline Company. There have been speculations of spectators and brokers interfering with the oil storage and distribution via the energy ministry in Kenya. To introduce these new regulations in this oil industry in Kenya will ensure reduced corruption, transparency in the oil sector in Kenya and encourage investors locally and from foreign countries.

There are around 67 oil retailers in Kenya with trading licences to distribute oil. Half of these fuel distributors and oil retailers in Kenya is bound to lose licences of trading when the new rules from the ministry of energy are gazetted.

Operators in Oil industry in Kenya had been given up to 1 January 2014 to comply with the ministry of energy new rules, which applied during the renewal of 2014 oil trading licences in Kenya.

Among the new rules introduced in the fuel and oil industry in Kenya, registered oil firms in Kenya must own at least 5 oil retail stations, or a petroleum depot in Kenya. In case an oil company in Kenya do not possess any of these, they should prove that they can sell at least 15 million litres of assorted fuels each year.

According to the new regulations in the oil industry in Kenya, an oil Company defaulting both of the two rules above for 2 consecutive months, the fuel company will get their trading licence downgraded for not less than one year.

All registered fuel firms in Kenya must comply with the agreements with the national pipeline in Kenya and the oil refinery. These agreements include prompt lifting of oil products in Kenya and maintaining dead stock which is popularly known as line fill of 500 m3 of diesel.

About the Author

Cynthia Kendeli

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Born in the culinary-rich city of Kisumu, along the shores of Lake Victoria, Cynthia Kendeli's passion for Food & Beverage was almost predestined. Her earliest memories revolve around the bustling fish markets and aromatic eateries of her hometown, and it was this backdrop that kindled her love for food and its cultural significance.

However, Cynthia's interests were dual-pronged. The political landscape of Kenya, with its dynamic shifts and intricate tapestry, also captivated her. This blend of culinary love and political intrigue paved her path to one of Kenya's leading universities, where she pursued degrees in both Food Science and Political Science.

Throughout her academic journey, Cynthia stood out for her unique ability to interweave two seemingly disparate subjects. She penned articles that delved into the socio-political impacts on Kenya's food and beverage industry, exploring topics ranging from local farm policies to international trade agreements.

After graduation, Cynthia quickly established herself in the world of journalism. Her writings, which appeared in national newspapers and magazines, bridged the gap between culinary enthusiasts and political aficionados. With every article, she managed to underscore the intricate relationship between politics and what ends up on the plates of Kenyans.

Her investigative pieces, particularly those that highlighted the interplay between governmental policies and the food & beverage sector, have earned her accolades both nationally and internationally. Cynthia's work does not just inform; it prompts discussions, incites debates, and often leads to tangible change in policy-making circles.

In addition to her journalistic endeavors, Cynthia Kendeli actively participates in food festivals, political debates, and educational seminars, serving as a bridge between the culinary world and the political arena.

Today, as a celebrated voice in both Food & Beverage and political journalism, Cynthia Kendeli continues to satiate the appetites of readers keen on understanding the confluence of culture, cuisine, and politics in Kenya.