The energy regulator is seeking mandatory insurance for liquefied petroleum gas (LPG) dealers to protect individuals, homes and businesses from economic loss and fatalities caused by explosions and fires.
The Energy and Petroleum Regulatory Authority (Epra) said that oil marketers would be required to take out public liability insurance (PLI) to cover customers and third parties against death, injury and damage to property caused by defective LPG cylinders.
Dealers who fail to take out the cover risk a fine that will be calculated at the rate of Sh10 per cylinder based on the number of cylinders declared to Epra.
Epra reckons that the new cover for LPG dealers is key to ensuring that customers are not exposed and left to fend for themselves in the event of accidents caused by faulty cooking gas cylinders.
Kenya has in recent times faced a spate of explosions and fires at LPG facilities, resulting in scores of deaths, hundreds of people critically injured and millions of shillings in losses to nearby businesses and homes.
“Brand owners shall take out a public liability insurance to cover damage, injuries or liability to LPG consumers or third parties that may result from a defective LPG cylinder,” Epra says in the regulations that are set to be published this week.
PLI covers victims of issues like gas leaks, cylinder explosions or fires resulting from the handling, distribution, and/or use of LPG. It (PLI) protects against legal liabilities arising from accidents involving petroleum products.
Three people were killed and more than 300 injured when an explosion occurred at an unlicensed refilling plant in Embakasi, highlighting the risks faced by individuals in the absence of insurance cover.
There have also been numerous cases of cooking gas cylinders exploding in homes and businesses, leaving victims with severe burns and property destroyed.
Last year, Epra announced that 32 out of 138 gas stations operating in different parts of the country had been closed down for failing to meet safety and other requirements.
This coverage comes at a time of increased use of cooking gas by households, businesses and public institutions. The increase in consumption means that more people are now exposed in the event of a defective cylinder.
Official data shows that consumption of cooking gas jumped by 14.8 percent to 413,960 tonnes last year from 360,590 tonnes in 2023 as households and businesses defied the rising cost of the commodity.
The increased use of LPG by homes is a major boost to the government’s efforts to cut the use of dirty fuels like charcoal and kerosene that pollute the environment, besides being a major cause of respiratory diseases.
The PLI will increase operating costs for dealers.
Dealers will also be required to revalidate their LPG cylinders every eight years to ensure that defective cylinders, which can easily cause accidents such as leaks or explosions, are kept out of the market.
The mandatory third-party insurance is also meant to discourage the thriving black market, where rogue dealers in the estates illegally refill and sell gas from other brands without their permission.
Epra requires retailers of cooking gas to show proof of ownership of at least 5,000 cylinders or a written authority for distributorship of a particular brand from a licensed LPG cylinder brand owner, in order to be approved as a retailer of the commodity.
