Kenya’s energy sector can strengthen consumer protection and security of supply through improved planning, investment in infrastructure and closer collaboration among regulators, industry players and other stakeholders.
The discussions took place during a media roundtable convened by the Energy and Petroleum Regulatory Authority (EPRA) in partnership with the Kenya Editors Guild (KEG), bringing together journalists, editors and senior officials to examine fuel pricing, petroleum security, electricity supply and the country’s preparations for first oil.
The engagement also provided an opportunity for the media to gain a deeper understanding of EPRA’s mandate, pricing processes and developments across the energy and petroleum sector.
Building Stronger Petroleum Security
Eng. Edward Kinyua, Director, Petroleum and Gas at EPRA, said the regulator’s role is to protect consumers, investors and other stakeholders while ensuring reliable and secure supply of petroleum products, electricity and other energy products.
EPRA does this through robust licensing regimes and by computing and approving tariffs to ensure consumers pay prudent costs. The regulator also conducts cost-of-service studies for electricity and petroleum to validate costs along the supply chain before they are passed on to consumers. Public participation enables consumers and other stakeholders to understand the metrics used in determining tariffs.
On petroleum security of supply, Kinyua said global supply has become volatile due to disruptions along major supply corridors, particularly in the Middle East. However, Kenya has maintained adequate supplies through robust planning, coordination with stakeholders and government-to-government petroleum imports.
The arrangement has also enabled Kenya to benefit from relatively low premiums and freight costs.
“While the world is paying about $300 a tonne, we are still paying $84 a tonne for petrol, $97 a tonne for Jet A-1 and $78 a tonne for diesel,” he said.
The Minimum Operational Stocks Regulations, under Legal Notice No. 44 of 2008, require marketers to maintain adequate stocks to cushion the country against supply disruptions. Marketers are required to maintain 25 days’ stock of diesel, based on sales over the previous 180 days, and 20 days’ stock of super petrol.
EPRA is also developing regulations to establish strategic petroleum stocks, currently under review by the Attorney General. Once gazetted, the regulations are expected to facilitate private investment in storage facilities, providing an additional buffer against supply disruptions.
The proposed Dangote refinery in Lamu would further strengthen Kenya’s petroleum security by increasing local refining capacity and providing an additional source of petroleum products.
On the South Lokichar oil project in Turkana, Kinyua noted that oil discoveries were made in Blocks T6 and T7 in March 2012 and commerciality was subsequently established.
The contractor, Gulf Energy and PBP, submitted the Field Development Plan for the two blocks to EPRA on September 30 last year. The authority assessed the plan for technical and commercial viability before recommending it to the Cabinet Secretary for approval. The plan was subsequently ratified by Parliament in February this year.
“The first oil date has been set for December 2026, and we expect, as per the Field Development Plan, that the first export of crude out of Mombasa will happen in the first quarter of 2027,” he said.
EPRA is currently monitoring the development works, with the contractor remaining within the timelines set out in the Field Development Plan.
Strengthening Accurate Energy Reporting
Eng. Joseph Oketch, Acting Director General of EPRA, said the media engagement was designed to strengthen journalists’ understanding of the authority’s work and support accurate reporting on the energy and petroleum sector.
The sector often attracts intense public scrutiny during market adjustments, supply pressures and geopolitical changes, making direct communication between the regulator and media important.
“During such moments, EPRA’s role, decisions and procurement processes can easily be misreported. This is why direct engagement with the media is very important to us,” Oketch said.
He highlighted electricity reliability, generation and efforts to reduce system losses, which increase the cost of supplying power.
“Losses are one of our key challenges as a country because some of the power we purchase is lost before the energy is consumed, and this comes at a great cost to the economy,” he said.
Ongoing electricity market reforms include open-access regulations, time-of-use studies and developments in regional power trade.
On cleaner cooking, Oketch pointed to the growth of liquefied petroleum gas (LPG) as Kenya seeks to expand access, while the authority continues providing information on fuel pricing and developments as the country moves towards first oil.
He urged journalists to seek clarification from EPRA when reporting on sensitive sector decisions, saying direct access to information can help reduce speculation and improve public understanding.
“We want you to have the information directly from us so that we do not rely on speculation,” he said.
Story by Victoria Musimbi
