70 Oil Companies Risk Closure over Failure to Renew Licences

  • KenolKobil and Total Kenya risk being shut down after it emerged that they had failed to adhere to licensing requirements enabling them to import and transport petroleum products into the country.

    The two are among 70 other oil companies who received a letter from Kenya Pipeline Company (KPC) charging them with failure to renew their permits.

    "We note that you have failed to obtain and/or renew your license that allows you to conduct business of importation and transportation/storage of petroleum and storage of petroleum products. We hereby issue you with a ninety-day notice to ensure compliance failure to which we shall take the necessary steps in accordance with Transportation and Storage Agreement (TSA) without further reference to you," read the letter signed by KPC Managing Director Joe Sang’.

    The Energy Regulatory Commission (ERC), however, denied the claims stating that no oil company should export petroleum products through the Ministry of Energy’s Open Tender System without acquiring a valid license.

    ERC Director-General Pavel Oimeke divulged that they give an updated list that is vetted before companies are given permissions to import or transact business.

    “On a monthly basis, the ERC advises the Ministry of Energy and KPC of the validly licensed oil marketing companies and this is what is used for ullage/capacity sharing and import planning. It, therefore, means that an oil marketing company without a valid license is automatically locked out of the system and cannot trade,” Mr Oimeke stated.