The Energy and Petroleum Regulatory Authority (EPRA) is the statutory regulator for Kenya’s energy sector established under the Energy Act 2019 (No. 1 of 2019). EPRA replaced the Energy Regulatory Commission and assumed additional petroleum sector responsibilities previously held under the Petroleum Act. Any person seeking to generate, transmit, distribute, or supply electricity; import, export, transport, or trade petroleum products; or develop renewable energy projects in Kenya must obtain the appropriate EPRA licence or authorisation before commencing operations.

The Energy Act 2019 Framework

The Energy Act 2019 consolidates Kenya’s energy sector regulation into a single framework covering electricity, petroleum, renewable energy, and energy efficiency. EPRA issues subsidiary regulations under the Act and administers the Renewable Energy Feed-In Tariff programme. The Act introduced mandatory energy efficiency obligations for large energy consumers and strengthened EPRA’s enforcement powers.

Electricity Sector Licences

The electricity sector is structured around generation, transmission, distribution, and supply, each requiring separate EPRA authorisation. An electricity generation licence is required by any person generating electricity above prescribed thresholds for supply to the national grid or directly to consumers. The application must include a NEMA-approved Environmental and Social Impact Assessment (ESIA), land rights documentation, a project feasibility study, and technical specifications.

Self-Generation Permit

Commercial and industrial entities generating electricity primarily for their own consumption require a self-generation permit rather than a full generation licence. Solar PV systems, backup generators, and distributed generation systems above the prescribed threshold require self-generation permits from EPRA.

Petroleum Sector Licences

The petroleum downstream sector is regulated by EPRA under the Petroleum Act 2019 and the Energy (Petroleum) Regulations. Licences are required for importation of petroleum products, wholesale distribution, retail sale through service stations, and storage facilities. EPRA conducts inspections of licensed petroleum facilities to ensure compliance with safety and quality standards. Petroleum importers must also comply with KEBS petroleum product specifications and KRA customs licensing.

Renewable Energy Licences

Kenya generates over 90% of electricity from renewable sources. EPRA administers the Feed-In Tariff policy for wind, solar, small hydro, biogas, biomass, and geothermal projects. Developers must obtain EPRA generation licences, complete NEMA environmental assessments, secure grid connection agreements with KETRACO or KPLC, and execute power purchase agreements (PPAs).

Energy Efficiency Obligations

The Energy Act 2019 imposes mandatory energy efficiency obligations on large energy consumers. Entities whose annual consumption exceeds prescribed thresholds must appoint designated energy managers, conduct energy audits every three years, submit energy management reports to EPRA, and implement efficiency improvement programmes. EPRA enforces these requirements and may impose significant penalties for non-compliance.

EPRA Enforcement and Penalties

Operating in the energy sector without the required EPRA licence is a criminal offence under the Energy Act 2019, attracting fines of up to KES 10 million and imprisonment. EPRA enforcement officers have powers to inspect licensed premises, seize unlicensed equipment, and prosecute unlicensed operators. The Authority also has powers to revoke licences for breach of licence conditions.

Our regulatory compliance practice advises energy developers, petroleum operators, and industrial entities on EPRA licensing and compliance. Further information is available at the EPRA official website. For businesses in the manufacturing sector, energy compliance is a recurring operational legal requirement that must be addressed proactively.