Syntheda

Kenya's petroleum sector remains under active regulatory management as the Energy and Petroleum Regulatory Authority (EPRA) maintains its monthly price review mechanism while simultaneously advancing safety standards for marine refueling operations and liquefied petroleum gas infrastructure. The dual approach reflects the regulator's mandate to balance consumer protection with industry development in East Africa's largest economy.

EPRA has published four consecutive monthly maximum retail petroleum price determinations spanning November 2025 through March 2026, according to official regulatory notices. The authority issued pricing schedules for November 15-December 14, 2025; December 15, 2025-January 14, 2026; January 15-February 14, 2026; and February 15-March 14, 2026. This monthly adjustment framework enables the regulator to respond to international crude price fluctuations, exchange rate movements, and domestic distribution costs while providing predictability for retailers and consumers.

The pricing mechanism operates within Kenya's liberalized petroleum sector, where EPRA sets maximum retail prices but does not directly control wholesale or import costs. Monthly adjustments typically account for landed costs at Mombasa port, inland transportation expenses, storage fees, and statutory margins for distributors and retailers. Kenya imports approximately 4.5 million tonnes of refined petroleum products annually, with super petrol, diesel, and kerosene comprising the bulk of consumption across transport, industrial, and household applications.

Parallel to price administration, EPRA initiated public consultative workshops on November 10, 2025, for the Draft Petroleum (Marine Refueling) Regulations, 2025, according to a regulatory notice published by the authority. The proposed regulations address a previously unregulated segment of Kenya's petroleum supply chain, as Mombasa port handles increasing vessel traffic requiring marine fuel services. The consultative process allows industry stakeholders, port operators, and environmental agencies to provide input before final gazettement.

Marine refueling regulations typically cover bunkering facility licensing, fuel quality specifications for maritime use, spill prevention protocols, firefighting equipment requirements, and operational safety standards for fuel transfer to vessels. Kenya's development of specific marine refueling rules aligns with International Maritime Organization standards and reflects the country's ambition to position Mombasa as a competitive regional bunkering hub. The port currently serves container vessels, bulk carriers, and tankers operating along East African coastal routes and international shipping lanes.

EPRA also published reports on LPG depot safety on October 22 and October 23, 2025, addressing safety compliance at storage facilities handling liquefied petroleum gas. Kenya has experienced rapid LPG adoption as the government promotes cleaner cooking fuels to reduce reliance on charcoal and firewood, with LPG consumption reaching approximately 350,000 tonnes annually. The sector includes import terminals at Mombasa, bulk storage depots in major urban centers, and thousands of retail distribution points.

LPG depot safety assessments typically evaluate structural integrity of storage tanks, pressure relief systems, fire suppression equipment, leak detection mechanisms, security perimeters, and operator training programs. EPRA's publication of safety reports indicates ongoing monitoring of facilities that store pressurized flammable gases in proximity to residential and commercial areas. Previous incidents at LPG facilities in Kenya and neighboring countries have prompted regulators to strengthen inspection regimes and enforcement of technical standards.

The regulatory activity occurs as Kenya implements its National Energy Policy framework, which prioritizes energy security, affordability, and environmental sustainability. Petroleum products account for approximately 70 percent of Kenya's total energy consumption, despite government efforts to expand renewable electricity generation. The country's petroleum import bill remains a significant component of the current account deficit, making price stability and supply security critical economic considerations.

Industry stakeholders will monitor whether EPRA's marine refueling regulations include provisions for low-sulfur marine fuels mandated by IMO 2020 standards, which require vessels to use fuel with maximum 0.5 percent sulfur content. Compliance infrastructure for marine fuel quality testing and certification will be essential for Kenya to compete with established bunkering ports in South Africa, the United Arab Emirates, and Singapore. The regulations may also address pricing transparency for marine fuels, which operate in a separate market from retail petroleum products.

The LPG safety reports are expected to inform potential regulatory amendments addressing depot siting requirements, minimum distance from populated areas, emergency response protocols, and third-party liability insurance. As LPG penetration increases under government clean cooking initiatives, the number of storage facilities is expanding beyond traditional urban centers into secondary towns and rural trading centers, raising new safety oversight challenges for the regulator.

Kenya's petroleum regulatory framework continues to evolve as the sector faces pressure from multiple directions: consumer demands for affordable fuel, investor requirements for regulatory certainty, safety imperatives following past accidents, and environmental obligations under climate commitments. EPRA's simultaneous management of price controls, safety standards, and new subsector regulations demonstrates the complexity of overseeing a mature petroleum market while facilitating infrastructure development and market expansion.