LPG gas cylinders. Photo | courtesy.
Cooking gas companies in Kenya will soon be required to obtain compulsory insurance coverage for their operations, following a rise in gas related explosions that have claimed lives and caused millions in damages.
The Energy and Petroleum Regulatory Authority (EPRA) said the proposed regulations, currently under stakeholder consultation, aim to protect both consumers and third parties in the event of accidents.
“We have witnessed an alarming increase in gas related incidents some due to negligence, others due to illegal refilling. Insurance is a critical step in enforcing accountability,” said EPRA Director-General Daniel Kiptoo.
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Over the past 12 months, Kenya has recorded at least seven major LPG accidents, including the deadly Embakasi gas fire in January that killed 14 people and left dozens injured. Investigations revealed that the involved facility had been operating without a proper license.
Under the new policy framework, gas refillers, transporters, wholesalers, and even retailers will need to present valid insurance documents before their licenses are renewed.
The cover will include third party liability, property damage, and employee compensation.
“We support the safety measures, but the cost of premiums must be reasonable, especially for small scale distributors,” said John Kariuki, chairperson of the LPG Dealers Association.
EPRA plans to roll out the new regulations in the next quarter.
