A tribunal has ordered the Energy and Petroleum Regulatory Authority (Epra) to pay Sh73 million in compensation to two cooking gas firms whose premises were shut down by the regulator in the wake of a deadly explosion that killed people in Nairobi in 2024.
The Energy and Petroleum Tribunal ordered Epra to compensate the dealers, Crescent Energy Limited and Lubricants Trading Kenya Limited, for the losses they have incurred due to the closure of these facilities.
Epra closed a liquefied petroleum gas (LPG) depot that the two own in Kamangu and declined to renew the licenses of two others located in Kikuyu and Ongata Rongai, citing proximity to residential premises and illegal refilling.
The closure of the depots in Kikuyu and Ongata Rongai came days after an unlicensed LPG refilling plant exploded in Nairobi’s Mradi area, while illegal refilling triggered Epra to close the facility in Kamangu, Kiambu County.
The Mradi area explosion prompted Epra to order the temporary closure of LPG storage and filling plants situated within a radius of 200 metres of residential buildings and places of public gathering, pending detailed technical audits and risk assessments.
The location of LPG depots close to residential areas and illegal refilling is a major headache for Epra, largely due to deadly incidents that have led to fatalities and put the regulator on the spot.
Crescent Energy and Lubricants Trading petitioned the Tribunal to award them damages of Sh1.9 billion, citing commercial losses, reputational damages and deterioration of their facilities due to Epra’s closure.
“In the result, having carefully considered the pleadings, the evidence on record, the parties’ written submissions and the applicable law, the Tribunal makes the following orders: that the Plaintiffs are awarded an aggregate sum of Kenya Shillings Seventy Million (Sh70,000,000) in general damages,” the Tribunal ruled.
“The 1st Plaintiff, Crescent Energy Limited, is awarded Sh3,004,000 for the established loss of weighbridge income and the Defendant shall bear the Plaintiffs’ costs of the suit.”
Epra was also ordered to undertake a fresh inspection of the duo’s depots in Kikuyu and Ongata Rongai and renew their licenses if they meet the safety requirements.
Energy and Petroleum Regulatory Authority acting director-general Joseph Oketch.
Photo credit: Dennis Onsongo | Nation Media Group
The energy regulator closed the two depots that Crescent Energy and Lubricants Trading own in Kikuyu and Ongata Rongai in February 2024, citing proximity to residential areas.
The license for the depot in Kikuyu expired in March this year, while that for the Ongata Rongai facility lapsed three months later, and the regulator declined to renew them amid safety concerns.
The location of LPG refilling plants close to residential areas and learning institutions is a major headache in Kenya’s cooking gas sector, even as the energy regulator says that facilities located in these areas are illegal.
For example, the Mradi explosion killed at least 10 people, injured hundreds and burnt several houses and shops in the populous neighborhood, bringing to the fore the risk posed whenever LPG depots are located close to residential areas.
Currently, Epra requires that LPG depots and refilling stations be located at least 200 metres away from residential areas. Those in breach of this condition are closed down.
