Kenyas Energy Regulatory Commission recently invited the Kenyan public to submit written comments on proposed regulations that would require all businesses handling lubricants to be licensed.
The law, introduced on May 10, would put the countrys burgeoning lubricants market in the spotlight, increasing regulation on substandard products in the industry. The law would impose licensing requirements on any business importing, blending, exporting, packaging, storing, or transporting lubricants, and would require new lube facilities to acquire construction permits granted by the commission.
The Kenyan lubricants market has more than 100 operators, according to issue 9 of The Benchmark, an in-house magazine of the Kenyan Bureau of Standards.
While the 2006 Energy Act empowers the ERC to regulate the business of lubricants in Kenya, many key players report that there is still a proliferation of substandard lubes being sold on Kenyas streets.
Although there is a standard for each oil grade, the enforcement has been lacking, resulting in low-quality products being marketed by various companies, said Joseph Ndugu of Lubes Africa Ltd.
Ndugu told Lube Report that many players in the lubricants sector are welcoming this move because it will create a level playing field for all marketers and prevent situations whereby companies undercut each other by introducing cheaper but low quality products.
James Mutisya, petroleum manager of KenolKobil, agrees that the law offers a positive development for the Kenyan lubricants market.
It is aimed at protecting the consumer, the legitimate lubricants business and also the revenue authorities by making lubricants business open for scrutiny by authorities and making it difficult for those who do not want to operate a sincere business, Mutisya told Lube Report.
While it is generally welcomed in the industry, some players fear the proposed regulatory law may become an avenue for favoritism and may lead to undercutting due process, alleging that government businesses are known to be riddled with corrupt practices.
Mutisya dismisses this notion, however, insisting that those wishing to operate a lubricants business, having complied with the regulations and subject to inspections, and rigorous licensing exercise, will be unlikely to counterfeit or sell undetermined products, whether locally manufactured or imported.