Enforcement of energy and petroleum regulatory authority policies in the liquefied petroleum gas sector in Uasin Gishu County, Kenya

Abstract

The petroleum sector in Kenya is critical for energy security and economic growth, yet challenges in policy enforcement continue to hinder its effective regulation. Despite the existence of the Energy and Petroleum Regulatory Authority (EPRA) policies, compliance issues persist, particularly in the Liquefied Petroleum Gas (LPG) sector, where unlicensed operations, illegal cross-filling, and brand hoarding are common. Notwithstanding the existence of the Energy and Petroleum Regulatory Authority (EPRA) policies, there persists proliferation of Liquefied Petroleum Gas (LPG), many operating without licenses, while cases of illegal cross-filling and hoarding of competitors’ brands are common. This calls into question the enforcement and effectiveness of enforcement regulations by EPRA. This study sought to assess the enforcement of EPRA’s policies that regulate liquid petroleum gas sector in Uasin Gishu County in Kenya. The specific objectives were to: analyze the legal, policy and institutional frameworks guiding LPG regulatory practices; evaluate EPRA's enforcement activities; assess the effectiveness of EPRA in ensuring compliance among LPG dealers; and to examine EPRA's institutional capacity and challenges. The study was grounded in Stakeholder Theory and Institutional Theory and guided by explanatory research design while using a mixed-methods approach. The target population of the study comprised 809 LPG dealers and 26 industry stakeholders. Using Yamane's formula, a sample size of 267 LPG dealers was selected to provide primary data through questionnaires where 241 returned the questionnaires. Through purposive sampling, all the 26 stakeholders were slated for interview but 23 were selected as part of the sample and were interviewed as Key Informants. Quantitative data was analyzed using descriptive statistics, while qualitative data was analyzed using thematic analysis. Data was presented in tables for quantitative data while interview results were presented in a narrative form. The findings indicated that the policy enforcement areas of EPRA include conducting periodic inspections to verify compliance with safety standards, issuing operational guidelines and storage protocols, as evidenced by a mean score of 4.0044. EPRA also provides contractual procedures, with a mean score of 4.9674, enhances business clarity and sustainability. Further, EPRA enforces penalties on non-compliant dealers as reflected by a mean score of 4.9228. The qualitative findings showed that EPRA’s activities include issuing licenses, monitoring compliance, imposing fines and providing mechanisms for consumer feedback. The results indicated that there are various challenges ranging from resources and enforcement capacity in EPRA. The study concluded that EPRA possesses adequate legal, policy, and institutional framework to regulate petroleum industries effectively and efficiently but faces challenges such as limited field enforcement capacity and resource constraints that hinder full implementation of these frameworks. The study recommends enhancing regulatory processes and increasing resources to strengthen EPRA’s enforcement capacity roles. This is particularly informed by the findings that the proliferation of unlicensed dealers is linked to EPRA’s limited resources and operational challenges in law enforcement. The study suggests that future research be done on the role of consumers in industry regulation, and best practices for enforcing LPG regulations.