Epra on the spot for 'siding' with big oil firms in cooking gas row

Traders at a gas outlet in Nyeri town. The High Court has stopped enforcement raids on such premises until the hearing of a pending court case. [File, Standard]

Local small and medium-sized gas dealers have won the first round in a battle pitting them against major oil marketing companies.

The dealers claim the oil majors have been trying to squeeze them out of business through alleged illegal raids and arrests.

The fight has also drawn attention to the Energy and Petroleum Regulatory Authority (Epra) for seemingly leaving its enforcement mandate to private sector players.

The court on Tuesday issued an order stopping the large oil marketers from carrying out enforcement actions until a case filed in court is heard and determined.

The independent gas dealers claim the Petroleum Institute of East Africa (PIEA), a lobby for large oil marketers, has been illegally conducting raids at their premises and confiscating equipment, including gas cylinders.

The larger companies, through PIEA and its enforcement officer - Mr Clive Mutiso - have also allegedly been using police officers to conduct what they said were illegal arrests and harassment of staff of the members of the Independent Gas Dealers Association of Kenya.

In the suit, the independent Liquefied Petroleum Gas (LPG) companies had asked the court to issue an order prohibiting Mr Mutiso, PIEA and the Inspector General of Police from conducting inspections, arbitrary arrests, endless raids, illegal closure and confiscation of gas cylinders from the premises of the small cooking gas companies.

In a suit filed at the Milimani High Court on July 17, the petitioners - a group of 13 small and mid-sized LPG companies - also say Epra has the mandate of carrying out enforcement actions but appears to have delegated this to PIEA.

The court on Tuesday issued an order prohibiting PIEA and Mr Mutiso from carrying out enforcement actions.

According to the court, "the alleged actions by the first and second respondents (Mutiso and PIEA) against petitioners must be stopped."

Justice Lawrence Mugambi granted the companies their prayers, prohibiting Mr Mutiso, PIEA together with the police from conducting raids, making arrests and confiscating equipment at their premises until the matter is heard and determined.

"This will ensure no further or future alleged violation takes place before the court settles the question of alleged arrests and prosecutions that are subject to this petition, which the regulator has questioned as usurping its roles. If these actions are allowed to go on, it will be difficult to grant redress should the petition succeed," said Justice Mugambi.

The court further noted that Epra, together with police and DCI officers seconded to it, are mandated with enforcement but appears to have conveyed this to PIEA and Mr Mutiso.

PIEA has in the past raised concerns about alarmingly high instances of illegal refilling of gas cylinders owned by its members and called for the strict enforcement of the 2019 LPG regulations.

The regulations make it illegal for one marketer to handle the gas cylinders of a competitor.

The independent dealers now claim that PIEA has taken matters into its own hands in a bid to root out illegal industry players.