Petrol Firms in Kenya Risk Ksh10 Million Fine as Government Cracks Down on Fuel Hoarding
Petrol companies operating in Kenya are now facing the risk of severe penalties, including fines of up to Ksh10 million, after the government issued a fresh directive aimed at stopping fuel hoarding and price manipulation.
The latest warning was issued by the Competition Authority of Kenya (CAK), which has raised concern over suspected unfair practices in the petroleum supply chain.
The directive comes at a time when many motorists across the country have been complaining about difficulties accessing fuel.
In several towns and major highways, drivers have reported unusually long queues at petrol stations, while some filling stations have completely run out of stock.
This has caused growing anxiety among consumers, especially because the government has continued to assure the public that the country has enough petroleum reserves.
On Friday, April 10, the Competition Authority said it had received worrying reports suggesting that some fuel dealers may be intentionally reducing supply in the market.
According to the Authority, early investigations show that some oil marketing companies could be withholding fuel from independent petrol stations as they wait for an anticipated price increase.
CAK stressed that fuel is a very important commodity because it directly supports transport, businesses, food distribution, and the general economy.
Because of this, the Authority said any attempt by suppliers, distributors, or retailers to deliberately limit fuel supply in order to create an artificial shortage, push prices higher, or gain an unfair business advantage is illegal under Kenyan competition laws.
In its statement, the Authority strongly warned oil marketers against taking part in anti-competitive behaviour, including hoarding fuel, selectively supplying certain stations, or discriminating against independent retailers.
It made it clear that companies found engaging in such practices could face penalties amounting to as much as 10 per cent of their gross annual turnover from the previous financial year in Kenya.
The regulator further warned that companies found selling fuel above the government-approved prices, or those involved in any other form of market manipulation, will also face tough legal action.
Such companies risk a fine of not less than Ksh10 million, a prison sentence of up to five years, or both, depending on the seriousness of the offence.
CAK emphasised the seriousness of the matter, noting that businesses found guilty of breaching the Competition Act will not be spared.
The Authority said the law allows it to impose heavy financial penalties to protect consumers and maintain fairness in the market.
This warning follows widespread complaints from motorists and transport operators who say they have been struggling to get petrol and diesel in recent days.
In some areas, reports indicate that certain petrol stations have been rationing fuel sales, limiting the amount each customer can buy, or only making selected fuel products available.
Such actions have further increased suspicion that some dealers may be trying to take advantage of expected fuel price changes.
The situation has left many Kenyans frustrated, with some consumers accusing petrol station operators of creating panic in the market to maximise profits before the next fuel price review.
The long queues and dry pumps have also started affecting transport costs and daily business activities in some regions.
At the same time, the Energy and Petroleum Regulatory Authority (EPRA) has maintained that Kenya has enough fuel in its reserves and there is no genuine shortage.
EPRA dismissed reports of a national fuel crisis, insisting that the supply interruptions being witnessed in some places are more likely the result of market manipulation and hoarding by certain players rather than an actual lack of petroleum products.
The latest government move now signals a tougher stance against any company attempting to exploit consumers through artificial scarcity, with authorities keen on ensuring that Kenyans continue to access fuel at fair and regulated prices.
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