Procedure on How to Apply for a Petroleum Business Licence in Kenya
1) Step 1 Any person desirous of obtaining a licence to carry out petroleum Business in Kenya should make a written application to the Energy regulatory Commission or licensing agent in the manner prescribed by the Commission in The Electric Power Act, 1997 and the Commission or licensing agent may, within thirty days send a reply.
2)Step 2 This should be completed and returned, copies of plans of your premises (scale 1:100), including location of petroleum storage and the actual storage arrangements.Send the application either to Energy regulatory Commission in Kenya or to the Ministry of Energy & Petroleum, Nyayo House,you can also request for an application pack or you can download the application form from their website Website:http://www.erc.go.ke complete it and return it to the commission Head office:
3)step 3 visit ERC website then you click on the link it will directs you to the Energy regulatory commission portal. check for the following link: “User Registration”.i).User login is used by user s who have already registered in the system.ii).For users who are have not registered click on the Register link.
- Two options exists namely:
a)Already has an existing licenceb)Apply for a new licence
- please Choose the applicable option.
4)Step 4 Select the Licence Type from the list then when done click the Next button.
Read the terms and conditions and click on Accept to continue with application,otherwise the system will not allow you to continue without accepting the terms and conditions.
5)Step 5 Enter your personal details.Then Click Save when you are done.
NB: The items marked with (*) are MANDATORY An email will be sent to your email address with details of how to activate your account. If you do not receive the email you can resend by click again to resend the email.
6)Step 6 You will be redirected back to the site with a message indicating that your account has been activated.
7) Step 7 Login to the System
- 1.To login to the system enter your username and password then click on the Login button.
Enter your Username and password into the system.
8)Step 8 Completing the Licence application form.
- After login in the first time the system will prompt you to enter more information relating to your application.This will include the details of the company,ie Name of the company, the contact person ,location of the company,registration details etc.
After you have completed entering the details click Next to continue
9)Step 9 You will be prompted to enter your Directors/Partners in the petroleum business
- To enter your Director or Partner Click Next.
- Enter your Director or Partner details then click Save
10)Step 10 You will be prompted to enter the description of your premises.
- Type the details and click Next to continue.
11)Step 11 For Petroleum Business Licence and LPG business Licence you will be prompted to select the Categories of Licence you wish to apply for. Select the categories and click Next to continue.
12). Step 12 The system will prompt you to enter two referees before proceeding to the next step.
13) .Step 13 The system will prompt you to upload required documents. To attach a document click Attach alongside the description of the document.
- It is assumed that all relevant attachments exist in soft format. Please make arrangement to convert all hard copies to soft format through scanning in PDF format then Browse the document that you wish to upload and then click Upload.
- The system will notify you whenever the document has been successfully uploaded.Then Click Continue to continue.
- The system will display the document uploaded with an option to remove that document if needed.When you are through with attaching
all required documents click Next to continueNote
- These licences do not require payment of an application fee.The system will indicate to you that you are not required to pay an application fees.
14) .Step 14 The system will indicate to you that your application is complete. Click Submit to complete the application process.
- You can access your licences by clicking on My Licences Link on the top menu bar.
- The system will indicate to you that your application is complete. Click Submit to complete the application process.
- You can access your licences by clicking on My Licences Link on the top menu bar.
- ERC Licence Applications Once you have completed your licence application the system will present you with a list of licenses and will
show the license you have just a pplied for as status New1)The commission with thirty days may:(a)grant a licence accordingly, either without conditions or subject to such conditions as the commission may deem fit and shall be accompanied by the prescribed fee;(b)refuse to grant such licence.
A Petroleum Business licence is issued subject to strict conditions containing important safety requirements, which must be followed. A copy of the conditions will accompany your licence. The licence must be kept available on the premises in a site register at all times.
(2) Where the Commission or licensing agent(a) refuses to grant a licence; or(b) imposes conditions on a licence,the Commission or licensing agent shall give to the applicant, the reasons in writing for the action.
(3) A licence issued under the commission shall be valid for one year from the date of issue.
(4) An application for a renewal of a licence shall be made at least thirty days before the expiry date of the current licence and must be accompanied by the prescribed fee.
(5) If the Commission or the licensing agent is satisfied that the applicant continues to meet the requirements for the issue of the licence, the Commission or the licensing agent shall renew the licence.
(6) If an application for the renewal of a licence has been made before the expiry of the licence but has not been dealt with by the Commission or the licensing agent when the licence is due to expire, the licence continues in force until the application for renewal is dealt with and any renewal in such a case shall be taken to have commenced from the day when the licence would have expired before the renewal.
(7) A person who contravenes subsection (4)of the petroleum Act sh
Eligibility – Petroleum Business Licence in Kenya
All companies and other stakeholders who wish to engage in Petroleum business in Kenya.
Instructions – Petroleum Business Licence in Kenya
- A person shall not conduct a business of importation, refining, exportation,wholesale, retail, storage or transportation of petroleum, except under and in accordance with the terms and conditions of a valid licence.
- A licensee shall not sell petroleum to a person for the purpose of exportation or for resale in Kenya unless that person has a valid exporters or retail licence under this Act.
- A person shall not use a vehicle for the purpose of transporting petroleum unless there is in force, in respect of that vehicle, a valid petroleum permit issued under this Act.
- No person shall drive a vehicle, or engage a driver, for the purpose of transporting petroleum unless such driver is certified for that purpose in accordance with this Act.
- A person who contravenes this section commits an offence and shall, on conviction, be liable to a fine not exceeding one million shillings, or to a maximum term of imprisonment of one year, or to both Petroleum Business Licence in Kenya
- A copy of bank Draft
- A Copy of Current Tax Clearance Certificate.
- A VAT Certificate
- A Company Profile
- A comprehensive Staff List and Curriculum Vitea of the key Staff,
- A List of Equipments facility to the company.
- DRP Endorsed Request for Expatriate Quota
- Training Program for Kenyan Staff
- Registration by relevant for professional body
- A copy of technical agreement of MOU with Kenyan company/Department of Petroleum Resource Accredited laboratory.
- Current Workmen s compensation policy.
Need for the Document
Petroleum fuels constitute the main source of commercial energy in Kenya. Kenya is a net importer of petroleum products and has a refinery owned and managed by the Kenya Petroleum Refineries Ltd (KPRL), an 800 km cross country oil pipeline from Mombasa to Nairobi and Western Kenya with terminals in Nairobi, Nakuru, Eldoret and Kisumu, run by the Kenya Pipeline Company (KPC). The sector also boasts of over 30 oil importing and marketing companies comprising of five major companies namely Shell, Total, Kenol/Kobil, Oil Libya, Chevron, and other emerging oil companies which include the Government owned National Oil Corporation of Kenya (NOCK). Petroleum Business Licence in Kenya
The sector, which was liberalized in 1994, has since seen a lot of growth and improvements in quality and level of service. However, without an appropriate regulatory environment being in place at the time of liberalization (the existing legislation at the time was the Petroleum Act Cap 116 of 1948 with latest revision of 1972), several challenges face the sector which include proliferation of substandard petroleum dispensing and storage sites which pose environment health and safety risks; diversion of petroleum products destined for export into the local market by unscrupulous business people to evade tax and a dominance of the market by a few companies among others.
The Act states in Section 5(a) (ii) that the objects and functions of ERC include regulating the importation, exportation, transportation, refining, storage and sale of petroleum and petroleum products. Therefore one of the functions of the ERC is licensing of petroleum import, export, transport, storage, refining and sale. Construction Permits are also to be issued by ERC for all petroleum related facilities in order to check proliferation of substandard sites. All petroleum operators are required to comply with provisions for Environment Health and Safety. Petroleum products should also meet the relevant Kenya Standards.