The Energy and Petroleum Regulatory Authority (EPRA) has issued a stern warning to Oil Marketing Companies (OMCs) over reports of artificial shortages and breaches of wholesale price caps in the petroleum sector.
In a circular dated 8th April 2026, addressed to CEOs of all OMCs, EPRA highlighted preliminary investigations indicating that some companies are deliberately withholding petroleum supplies from non-franchised retailers, commonly known as independents, in anticipation of future price increases.
"Preliminary investigations indicate deliberate holding back of petroleum products by some OMCs to non-franchised retailers," EPRA Acting Director General Eng Joseph Oketch stated.
"This practice amounts to hoarding and is a punishable offence under the Petroleum Act."
The letter references Section 99(1)(k) of the Petroleum Act No. 2 of 2019, which criminalizes hoarding of petroleum products.Companies found guilty face a minimum fine of one million Kenya Shillings, imprisonment of at least one year, or both.
EPRA also raised concerns over some OMCs selling petroleum products above the recommended ex-depot or wholesale prices, which is an offence under Section 99(1)(n) of the Petroleum Act.
Conviction for this offence could attract fines of at least ten million Kenya Shillings, imprisonment of no less than five years, or both.
"EPRA shall not hesitate to revoke operational licenses of OMCs found to have committed these offences," Oketch warned.
The regulatory body’s statement comes amid public reports of fuel scarcity in various parts of the country, despite government data confirming that the nation’s petroleum stocks are adequate.
The March 18, 2026, communication from EPRA, Ref: EPRA/PG/9/EK/an, had already highlighted the operational stocks, noting sufficient supply levels.
Industry analysts have expressed concern that hoarding and inflated pricing could destabilize fuel supply and increase costs for consumers.
"Artificial shortages distort the market and hurt end-users," said Jane Mwangi, an energy sector analyst based in Nairobi. "Regulators must act decisively to ensure compliance and protect the public."
EPRA’s intervention highlights the government’s commitment to maintaining stability in the petroleum sector and safeguarding consumers from exploitative practices.
The regulatory authority urged all OMCs to comply strictly with pricing guidelines and distribution obligations to avoid punitive action.
The warning has been welcomed by consumer advocacy groups, who say that unchecked price manipulation could exacerbate the economic burden on households.
"EPRA’s stance is critical for protecting consumers from artificial price hikes," said Samuel Kariuki, chairperson of the Kenya Consumers Association.
EPRA has called on the public and independent retailers to report any instances of hoarding or price violations, promising swift investigations and enforcement actions.
As investigations continue, the regulator emphasized that compliance with the Petroleum Act is not optional, signaling a zero-tolerance approach to practices that could disrupt the country’s fuel supply.