EPRA Threatens Action Against Oil Companies Hoarding Petroleum Products

Kenya, April 9, 2026 - The Energy and Petroleum Authority has threatened to revoke the licenses of Oil Marketing Companies (OMCs) that are hoarding petroleum products, thereby creating an artificial fuel shortage in the country.

 In a letter to OMCs, the authority’s Acting Director General Joseph Oketch, noted that the country has sufficient petroleum stocks, despite the current fuel shortage.

 Investigations by the authority have revealed that some OMCs are deliberately holding back sales of petroleum products to independent retailers and breaching wholesale market caps, in anticipation of a price increase.

The regulator said the practice constitutes an offence under Section 99(1) of the Petroleum Act, with offenders facing penalties including licence suspension, fines, and possible imprisonment.

“The Energy and Petroleum Regulatory Authority (EPRA) has received reports of an artificial shortage of petroleum products in the country despite the country being sufficiently stocked,” Oketch said.

 OMCs found hoarding petroleum products shall have committed an offence and shall, on conviction, be liable to a fine of not less than Sh1 million, or imprisonment for a term of not less than one year, or both, according to the authority.

On the other hand, those found guilty of overpricing fuel products risk facing stiffer penalties, including a fine of at least Ksh10 million or imprisonment of a minimum of five years.

 The warning comes amid growing concerns among motorists about fuel availability, with petrol stations reporting supply challenges.

 In a statement on Wednesday, the Kenya Pipeline Company assured that the country has sufficient stocks of petroleum products to meet current and future demands.

“ We wish to assure the public that there is sufficient fuel in all our terminals and depots and that the products meet national and international quality standards as prescribed by relevant certification bodies,” KPC stated.

The Kipevu Oil Storage terminal in Mombasa stocks 29,648 cubic metres of super petrol, 37,291 cubic metres of diesel, and 60,977 cubic metres of jet fuel.  

The Nairobi terminal currently holds 50,024 cubic metres of super petrol, 55,245 cubic metres of diesel, and 1,317 cubic metres of jet fuel.
 The company also indicated that the Kenya Petroleum Refineries holds 64,742 cubic metres of super petrol, 46,118 cubic metres of diesel, and 18,438 cubic metres of jet fuel.

Nakuru terminals hold 6,645 cubic metres of super petrol and 11,638 cubic metres of diesel, while Eldoret holds 8,068 cubic metres of petrol and 7,191 cubic metres of diesel.

Lastly, Kisumu terminals currently have 7,468 cubic metres of super petrol, 25,125 cubic metres of diesel, and 275 cubic metres of jet fuel, comfortably covering demand across the lake region.

“The Company operates 1,342 kilometres of pipeline network linking the Port of Mombasa to key inland depots in Nairobi, Nakuru, Eldoret, and Kisumu,” KPC stated.

“ This network is supported by modern storage facilities with a cumulative capacity of over 1 billion litres, enabling the Company to maintain adequate strategic stocks and ensure consistent supply across the country and the wider region,” it added.