Kenya’s petroleum market continues to evolve, with the Energy and Petroleum Regulatory Authority (EPRA) licensing six new oil marketing companies (OMCs) in the year ending June 2025. This brings the total number of registered firms to 146, up from 140 in the previous financial year. The entry of new players underscores the growing attractiveness of Kenya’s petroleum sector and signals increased competition that could drive efficiency and innovation across the market.
The newly licensed companies will be authorised to trade in key petroleum products including automotive gas oil, premium motor spirit, and dual-purpose kerosene. These products form the backbone of Kenya’s transport and energy sectors, meaning the participation of more players is critical to ensuring reliable supply, competitive pricing, and broader market stability. For consumers and businesses alike, the presence of additional OMCs provides greater choice and strengthens the resilience of Kenya’s energy supply chain.
The growth in the number of OMCs comes against the backdrop of rising domestic demand for petroleum products, which expanded by 6.94 percent to reach 5.8 million cubic metres. This surge has been driven by lower local and international fuel prices as well as increased economic activity across key sectors. The upward trend not only reflects Kenya’s ongoing economic recovery but also points to the essential role petroleum continues to play in powering industries, transportation, and households nationwide.
In parallel, Liquefied Petroleum Gas (LPG) consumption has experienced robust growth, rising by 15 percent from 360,594 metric tonnes in 2023 to 414,861 metric tonnes in 2024. This growth is significant as LPG is increasingly positioned as a cleaner, safer, and more sustainable alternative for households and institutions. The rollout of the National LPG Growth Strategy, which promotes adoption in public institutions, households, and among low-income communities, is expected to accelerate this trend and enhance energy access in line with Kenya’s clean energy goals.
Analysts further highlight that EPRA’s recent fuel price stabilisation measures have created a more predictable and investor-friendly environment. By cushioning consumers from global price shocks and ensuring market stability, these measures have encouraged confidence in the sector, making it more attractive for new entrants. The resulting competition is expected to benefit both the market and end-users through better pricing and improved service delivery.
As Kenya strengthens its position as a regional energy hub, the entry of new oil marketing companies, combined with growing LPG adoption and stabilised market conditions, represents a pivotal moment for the sector. The future outlook points to a more competitive, inclusive, and sustainable energy landscape that supports economic growth while advancing access to cleaner energy solutions.
