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1.  Fuel Marking

The Ministry of Energy through the Petroleum Act, Cap 116 issued Legal Notice No. 64 of 22nd May 2000, which made it mandatory for petroleum motor fuels destined for export or duty exempt institutions and domestic kerosene to be marked. This was to monitor the illegal practices such as diversion of petroleum products meant for export into the domestic market and adulteration of motor fuels with domestic kerosene. The program is divided into two components, namely:

  1. Marking of export/duty-free motor fuels and domestic kerosene with an invisible marker at all designated export depots; and
  2. Monitoring of motor fuels for the presence of the markers at the retail sites to determine if an offense of export dumping or fuel adulteration has occurred.

The Energy and Petroleum Regulatory Authority (The Authority) in January 2019 procured the services of Intertek testing services (EA) (PTY) Limited (Intertek) to undertake marking of domestic kerosene product and export/ duty free motor fuels. Additionally, Intertek was to undertake monitoring of fuels sold at retail sites in Kenya to determine if an offence of export dumping or fuel adulteration has occurred.

2.  Liquified Petroleum Gas (LPG) Uptake Project

With regards to LPG, the Government has initiated a project dubbed, ‘The Mwananchi Gas Project”. This is an initiative by the Ministry whose objectives are: -

  1. Reduce use of biomass and kerosene as the primary source of household cooking fuels
  2. To facilitate access of LPG to low-income households.
  3. To enhance LPG penetration in the country
  4. Scale-up uptake of LPG from 10% to 70%

The Ministry has so far procured over 100,000 6kg cylinders and sufficient accessories to begin the roll-out of both models. The project will be rolled out in two models. Model 1 will distribute 6kg LPG-filled cylinders fitted with burners and grills. In the first phase of this model, 60,000 units will be distributed to eligible beneficiaries at the subsidized cost of Sh. 1,950/unit across the 11 sub-counties of Nairobi County. In the next phase, the focus of distribution will be country-wide. Model 2 will entail the distribution of 6kg cylinders fitted with a compact valve and accessorized with a 1.5 m hose pipe, 2-burner table-top cooker, and a smart meter. As with Model 1, Model 2 will be piloted in Nairobi County and thereafter be enhanced to cover the rest of the country. The smart meter will help beneficiaries to monitor their consumption and at the same time mimic their daily fuel consumption by allowing the purchase of LPG amounts that the beneficiary can afford.

3.  Security of Supply of Petroleum Products

Kenya imports all its petroleum requirements through the Open Tender System (OTS) centrally coordinated by the Ministry of Petroleum and Mining. Tenders for importation of refined petroleum products are adjudicated on a monthly basis to ensure security of supply of petroleum products in the country and region.