On Thursday, July 31, 2025, the Energy and Petroleum Regulatory Authority (EPRA) is on the spot over claims by small-scale liquefied petroleum gas (LPG) dealers that the regulator is siding with large oil marketing companies in a controversial cooking gas market wrangle. In a report by The Standard on July 31, 2025, the allegations are that EPRA has abdicated its role of ensuring compliance by the major players who have taken over the market and sidelined smaller dealers.
The controversy centers on Kenya’s LPG sector, where small dealers, represented by groups like the Energy Dealers Association (EDA), accuse major oil companies of using their influence to squeeze them out of business. These smaller firms, which own 41% of the country’s LPG refilling plants but hold only 31% of storage capacity, argue that EPRA’s regulatory decisions have disproportionately benefited larger firms like Africa Gas and Oil Ltd (AGOL), which controls nearly 90% of Kenya’s cooking gas imports through its 25,000-tonne Mombasa facility.
The row intensified following EPRA’s 2019 decision to abolish the LPG cylinder exchange pool, a system that allowed consumers to refill cylinders at any outlet. The change, enacted through Legal Notice 100 of 2019, restricted refilling to brand-owner outlets, aiming to curb illegal refilling and enhance safety after a rise in gas cylinder explosions. However, small dealers claim this move has limited their market access, as major firms control larger, more strategic refilling plants, giving them an edge in distribution and pricing.
“EPRA’s policies seem to protect the interests of big oil companies while leaving us to struggle,” said John Mwangi, a spokesperson for the EDA, in an interview with The Standard. “We’re not against safety regulations, but the way they’re enforced feels like a deliberate attempt to push us out.” Mwangi’s statement reflects the frustration of small dealers who feel sidelined in a market where LPG demand grew by 8% to 360,594 metric tonnes in 2023.
EPRA has defended its actions, emphasizing its mandate to ensure safety and compliance. Director General Daniel Kiptoo, in a statement to The Star, highlighted ongoing efforts to regulate the sector fairly, including plans to introduce an Open Tender System (OTS) for LPG imports by 2025. The OTS aims to break AGOL’s monopoly by allowing competitive bidding, potentially lowering costs for consumers. “We are consulting with stakeholders to implement mechanisms that ensure fairness and transparency,” Kiptoo said.
The dispute has significant implications for Kenyan consumers, who face rising LPG prices—currently upwards of Sh3,300 for a 13 kg cylinder in Nairobi—exacerbated by global commodity costs and a weakened shilling. The government’s push to increase LPG usage to 15 kg per capita from 7 kg, as part of its environmental strategy to reduce reliance on charcoal and firewood, adds urgency to resolving the conflict. Small dealers argue that their exclusion undermines this goal, as they play a critical role in last-mile distribution to low-income households.
Critics also point to EPRA’s enforcement of safety measures, such as requiring CCTV cameras at LPG filling zones, as evidence of uneven application. In a February 2024 case following a deadly Embakasi gas explosion, the High Court dismissed a challenge by the EDA against this directive, citing procedural errors. Justice John Chigiti ruled that the Energy and Petroleum Tribunal was the appropriate forum, reinforcing EPRA’s regulatory authority. However, small dealers argue compliance costs disproportionately burden them compared to larger firms with greater resources.
The controversy has sparked broader questions about EPRA’s independence and its ability to balance consumer protection with industry fairness. While the regulator’s efforts to combat illegal refilling and enhance safety are widely acknowledged, the perception of favoritism risks eroding public trust. “EPRA must ensure that its policies don’t just favor those with deep pockets,” said energy analyst Sarah Wanjiku. “A competitive market benefits everyone, especially consumers struggling with high costs.”
As Kenya moves toward LPG price regulation and the OTS in 2025, the resolution of this dispute will be critical. New entrants, including Kenya Pipeline Company’s planned 30,000-tonne LPG berth in Mombasa, could shift market dynamics, but only if EPRA addresses the concerns of smaller players. For now, the regulator remains on the spot, tasked with proving its commitment to an equitable energy sector in a country where cooking gas is increasingly a household staple.
