Public Management

Kenya: Government revokes licences of companies selling adulterated petroleum products

Monday, 05 September 2016 15:07

(Ecofin Agency) - The Kenyan government has withdrawn licences of companies dealing in illegal sales of impure petroleum products in the country.
According to Energy cabinet secretary, Charles Keter (photo), this took place after police discovered the five stations involved in the act. Over 450,000 litres of impure petroleum products were seized.

“We have decided to cancel all the licences for the firms involved. We cannot allow cartels to compromise the quality of our petroleum products,” he said.
Keter added that Kenya has lost its oil market as result of adulteration of fuel. “Kenya sells fuel to countries like Rwanda, Uganda and Burundi. In Burundi we are at zero per cent while Rwanda is at 20 per cent”.

The cabinet secretary noted that one of the main causes of the illegal business is the cheap cost and tax of kerosene in Kenya compared to other East African countries.
“Initially the tax on kerosene was 45 cents until this year’s budget when the tax was increased to seven shillings. The low taxation on the commodity is the major contributor to the illegal business,” Keter told Sweetcrude reports.

Anita Fatunji

 
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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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