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How to Apply for a Licence to store Fuel and petroleum products in Kenya

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How to Apply for a Licence to store Fuel and petroleum products in Kenya by Kenyans247(m): Sat Jan 2020 10:45am
Procedure

Licensing is done through the Petroleum Licensing Committee of the Energy Regulatory Commission (ERC) in accordance to the requirements of the Energy Act 2006

Apply Online
Step 1 Register with ERC portal

Open ERC Website: ERC Website
Click on the tab “online services”
Click “access our online portal”
For new users click on the “register” tab. For existing users login using your user name and password
Click “apply for a new licence”
Select “business/company” to be able to apply for the license.
Enter your business details and press save. Ensure that you enter your correct email address. Create a unique username and password.
Open your email, you will find a message from ERC. Open our portal through the link given in your inbox to activate your account.

Step 2 Apply for petroleum storage
Log in to the portal using your provided username and password in (7) above. Under the license management tab click select New Application and under the Petroleum Sector select “Storage of petroleum products(Except LPG)” then click on “Continue with Registration”
This will lead you to the Licence Application: Petroleum Business Licence (Except LPG) page where you will be required to fill in the provided sections;
(i) Bio data
(ii) Directors
(iii) Description of Premises
(iv) License category ( Select: Storage of petroleum products(Except LPG) )
Upload your scanned documents in their respective places and press next. These documents include
(i) CR12 from the Registrar of companies (Not older than one (1) year) for limited companies
(ii) Certificate of Incorporation / Business Registration Certificate
(iii) Valid Tax Compliance Certificate from Kenya Revenue Authority
(iv) Legible Copies of Identification Documents i.e. IDs/Passports for all the Company directors
(v) Single Business Permit to operate business from the respective County Government
(vi) Environmental Impact Assessment (EIA) License (if New) or Environmental Audit acknowledgement letter from NEMA (if existing)
(vii) Fire Clearance Certificate for the facility from the respective County Fire Department
(viii) Proof of compliance with the Kenya Standard (KEBS letter)
(ix) Work Permits Class "G" for foreign directors as per CR12
(x) A valid copy of certificate of registration of work place from DOSHS
(xi) Valid certificate(s) of Calibration of the petroleum tank(s)
Select date of premise inspection.
Submit your application and print the application notification.

Step 3: Notification inspection and premise inspection
You will then receive a notification of premise inspection.
An ERC officer will then visit your business premises to do an inspection. He will inspect the building, electrical tools and equipment.
After inspection the officer will make recommendations to the Petroleum Licensing Committee of the Energy Regulatory Commission (ERC) in accordance to the requirements of the Energy Act 2006

Step 4: Obtain notice to collect license and obtain petroleum storage license
The licence is usually ready after a period of 30 days.
No fee is charged for the license application.
Notification for collection will be made through email and text message. One is required to collect the licence from the ERC offices. You are required to carry a proof of identity during collection.

Apply in Person

The applicant should visit the energy regulatory commission offices to make the application. The applicant will be given a Licence Application form: Petroleum Business Licence (Except LPG) Storage of petroleum products (Except LPG) to fill.
Fill in the required details.
Attach copies of the required documents and submit to the ERC offices for processing. These documents are mentioned in the Required Documents section below.
The licence is usually ready after a period of 30 days.
No fee is charged for the license application.
Notification for collection will be made through email and text message. One is required to collect the licence from the ERC offices. You are required to carry a proof of identity during collection.

Required Documents

All the documents are mandatory,
CR12 from the Registrar of companies (Not older than one (1) year) for limited companies
Certificate of Incorporation / Business Registration Certificate
Valid Tax Compliance Certificate from Kenya Revenue Authority
Legible Copies of Identification Documents i.e. IDs/Passports for all the Company directors
Single Business Permit to operate business from the respective County Government
Environmental Impact Assessment (EIA) Licence (if New) or Environmental Audit acknowledgement letter from NEMA (if existing)
Fire Clearance Certificate for the facility from the respective County Fire Department
Proof of compliance with the Kenya Standard (KEBS letter)
Work Permits Class "G" for foreign directors as per CR12
A valid copy of certificate of registration of work place from DOSHS
Valid certificate(s) of Calibration of the petroleum tank(s)
Scanned original copies of Identification documents (IDs or Passports for all the directors)
Certificate of compliance with the Physical Plarining Act of 1999

Office Locations & Contacts

Energy Regulatory Commission
Eagle Africa Centre,
Longonot road,
Upper hill.
P. O. Box 42681,
Nairobi - 00100
Tel: +254 202 847 000 / +254 202 847 200
Tel. 1: +254 202 717 603
Website:ERC website https://www.erc.go.ke/

On-line call support centre
0722-200947

Eligibility

All companies and other stakeholders who wish to engage in Petroleum business in Kenya.


Fees

Application is free of charge
The annual fee for a licence to store petroleum is be one hundred shillings for every five thousand gallons ( 100ksh/5000 gallons ) or part thereof with a maximum fee of two thousand shillings

Validity

Validity period is one year from the day of issue.

Documents to Use

Application documents are available at the ERC offices.
Application are also done online

Processing Time

The processing time is 30 days.

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Instructions

Register with ERC portal
Apply for petroleum storage
Notification of inspection
Inspection
Obtain notice to collect licence
Obtain petroleum storage licence

Required Information

Description of the premises(Town/Location/name of the Road /Name of the Building /Whether it is a Branch /Available office and storage area (in Sq. Feet)
Details of Business (Business registration No./ Registration Date)
Names of partners, their addresses and nationalities
Areas where the business will operate
Previous experience in storing petroleum products.
Name and address of bank(s) or financial institution(s) where the business account(s) is/are maintained
Storing of the receptacles and equipment available
Fire prevention/handling equipment’s available
Environmental impact assessment/environmental audit.

Need for the Document

A licence is required in order to ensure that those keeping and dispensing petroleum product, do so in a safe manner that is unlikely to cause risk to the public or environment.
The license will allow you to keep an approved quantity of petroleum. It is an offence to keep an amount in excess of this, as is failing to comply with any of the license conditions, or, keeping licensable quantities without a license.

Information which might help

The issuing authority for this license is Energy regulatory commission.
According to the Energy Act CAP. 314
A person shall not conduct a business of importation, refining, exportation, wholesale, retail, storage or transportation of petroleum, except under and in accordance with the terms and conditions of a valid licence.
A licensee shall not sell petroleum to a person for the purpose of exportation or for resale in Kenya unless that person has a valid exporters or retail licence under this Act.
A person shall not use a vehicle for the purpose of transporting petroleum unless there is in force, in respect of that vehicle, a valid petroleum permit issued under this Act.
No person shall drive a vehicle, or engage a driver, for the purpose of transporting petroleum unless such driver is certified for that purpose in accordance with this Act.
A person who contravenes this section commits an offence and shall, on conviction, be liable to a fine

External Links

ERC Licensing information https://www.erc.go.ke/services/petroleum/licencing-information/
Energy Act https://eregulations.invest.go.ke/media/energy%20act.pdf
Requirements for license https://eregulations.invest.go.ke/media/energy%20act.pdf

Source https://www.wikiprocedure.com/index.php?title=Kenya_-_Apply_for_a_Licence_to_store_Fuel_and_petroleum_products

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